Compare the numbers
| State | LLC formation fee | Yearly state requirement |
|---|---|---|
| Delaware | $110 | $400 annual LLC tax, due June 1; no annual report required |
| Wyoming | $100 | Annual report with a $60 minimum license tax, in the anniversary month |
| New Mexico | $50 | We found no annual or biennial report requirement for LLCs |
| Texas | $300 | Franchise tax report each May 15; no tax due below $2,650,000 of revenue (report years 2026 and 2027) |
| Florida | $125 | Annual report $138.75, January 1 to May 1 |
| Nevada | $75 | Annual list $150 plus a $200 state business license |
| California | $70 | Minimum franchise tax of $800 every year, plus a report every two years ($20) |
Fees come from each state's official page. For the full table, see the state fees hub. Local, sales and income taxes are separate and are not in this table.
Question 1: where do you live and work?
If you operate in a state other than the one where you form the LLC, that state may require you to register the LLC as a foreign LLC and may apply its own fees and taxes. The Texas Secretary of State describes this test as generally covering an office or employee in the state, or pursuing the company's purposes there, and it declines to give legal opinions on particular cases. So forming in a "low-fee" state can mean paying two states. Compare the total, not one state's fee.
Question 2: do you live outside the US?
A non-resident founder usually has no home state. The state then matters mostly for fees, the yearly requirement and the registered agent. Read LLC for non-US residents. Federal taxes, such as Form 5472, apply no matter which state you choose.
Question 3: what will the state charge each year?
The table above shows how different the ongoing cost can be. Some states charge a report fee, some a tax, some both. Add the registered agent cost and any publication requirement (New York, for example, requires a newspaper notice after formation).
Question 4: investors and specific industries
If you plan to raise money from investors, ask them what structure and state they expect. Corporations and LLCs are treated differently here. Read LLC, C-Corp or S-Corp. Some industries have their own licensing rules that depend on where you work.
What we can and cannot do
We form LLCs and corporations in every state we sell and act as the registered agent. We do not tell any individual which state to pick, because that depends on facts we cannot assess and is a question for a licensed attorney or CPA.
State pages
Each state page has its own fee table: Delaware, Wyoming, New Mexico, Texas, Florida, Nevada and California.
Next step
Ready to form yours? Start your LLC with Coral Filings and we handle the state filing, the registered agent and the EIN request. Want to compare filing fees first? Open the state fees hub for all 50 states and D.C.
Frequently asked questions
Is Delaware the best state for an LLC?
It depends on your facts. Delaware charges $110 to form and a $400 annual LLC tax. Compare it with your home state and with the other states in the table, and ask a licensed attorney or CPA.
Which state has the lowest cost?
Montana has the lowest formation fee in our data, $35, followed by Kentucky at $40 and Arkansas at $45. The cheapest state to form in is not always the cheapest to keep: compare the yearly cost on each state page. Registered agent, taxes and where you operate also change the total.
Do I have to form the LLC in the state where I live?
Not necessarily, but your home state may require a foreign registration if you operate there. Ask that state's Secretary of State or an attorney.
Can I move my LLC to another state later?
Some states allow conversion or domestication and the rules differ. Ask the receiving state's Secretary of State and a licensed attorney before you plan around it.
Does the state I choose change my federal taxes?
Federal rules, such as the IRS default LLC classification and Form 5472, do not depend on the state. State taxes do.
This page is general information, not legal or tax advice. For your specific situation, talk to a licensed attorney or CPA.
Sources
- Delaware Division of Corporations: fee schedule
- Delaware Division of Corporations: LLC annual tax
- Wyoming Secretary of State: business fees
- New Mexico Secretary of State: business services
- Texas Secretary of State: instructions for the LLC Certificate of Formation (Form 205)
- Texas Secretary of State: foreign or out-of-state entities FAQs
- Florida Division of Corporations: LLC fees
- California Secretary of State: business entities FAQs
- Nevada Revised Statutes, Chapter 86 (limited-liability companies)