Two of the most common forms of business organization in the United States are the corporation and the limited liability company (LLC). Both of these entities are created at the state level, and the rules governing them vary by state. One of the key differences between states is the amount charged by each state to create and maintain these business entities. In this analysis, AdvisorSmith examined corporate and LLC fees charged by all 50 states and the District of Columbia to find the most and least expensive states for entrepreneurs to register their business.
We examined fees published by the secretary of state or similar departments in each state to find the filing fees for registering a corporation or LLC, as well as the annual cost to maintain the entities in good standing. Our study found that the average cost to register a business was $145, including filing, publication, and initial report fees. The annual cost to maintain a business in good standing was $133, including annual report fees and franchise taxes.
States with the Highest Business Registration Costs
| Rank | State | Corporation Filing Fees | LLC Filing Fees |
|---|---|---|---|
| 1 | Massachusetts | $275 | $500 |
| 2 | Washington DC | $220 | $220 |
| 3 | Nevada | $725 | $450 |
| 4 | Rhode Island | $230 | $150 |
| 5 | California | $125 | $95 |
| 6 | Tennessee | $100 | $300 |
| 7 | Maryland | $120 | $100 |
| 8 | Vermont | $125 | $125 |
| 9 | North Carolina | $125 | $125 |
| 10 | Alaska | $250 | $250 |
| 11 | Delaware | $89 | $90 |
| 12 | Alabama | $200 | $200 |
| 13 | Connecticut | $250 | $120 |
| 14 | New Jersey | $125 | $125 |
| 15 | Florida | $70 | $125 |
| 16 | Oregon | $100 | $100 |
| 17 | Maine | $145 | $175 |
| 18 | Kentucky | $40 | $40 |
| 19 | New Hampshire | $100 | $100 |
| 20 | Illinois | $150 | $150 |
| 21 | Arkansas | $45 | $45 |
| 22 | Washington | $210 | $210 |
| 23 | Kansas | $89 | $160 |
| 24 | South Dakota | $150 | $150 |
| 25 | Wyoming | $102 | $102 |
| 26 | Virginia | $75 | $100 |
| 27 | New York | $125 | $650 |
| 28 | North Dakota | $135 | $135 |
| 29 | Georgia | $190 | $100 |
| 30 | Arizona | $260 | $250 |
| 31 | Wisconsin | $100 | $170 |
| 32 | Louisiana | $75 | $100 |
| 33 | Utah | $70 | $70 |
| 34 | Iowa | $50 | $50 |
| 35 | Nebraska | $165 | $205 |
| 36 | Indiana | $98 | $98 |
| 37 | Montana | $70 | $70 |
| 38 | West Virginia | $100 | $100 |
| 39 | Texas | $300 | $300 |
| 40 | Michigan | $60 | $50 |
| 41 | Minnesota | $155 | $155 |
| 42 | New Mexico | $125 | $50 |
| 43 | Oklahoma | $50 | $100 |
| 44 | Idaho | $100 | $100 |
| 45 | South Carolina | $135 | $110 |
| 46 | Pennsylvania | $257 | $125 |
| 47 | Hawaii | $50 | $50 |
| 48 | Missouri | $79 | $50 |
| 49 | Colorado | $50 | $50 |
| 50 | Ohio | $99 | $99 |
| 51 | Mississippi | $50 | $50 |
States with the Lowest Business Registration Costs
| Rank | State | Corporation Filing Fees | LLC Filing Fees |
|---|---|---|---|
| 1 | Mississippi | $50 | $50 |
| 2 | Ohio | $99 | $99 |
| 3 | Colorado | $50 | $50 |
| 4 | Missouri | $79 | $50 |
| 5 | Hawaii | $50 | $50 |
| 6 | Pennsylvania | $257 | $125 |
| 7 | South Carolina | $135 | $110 |
| 8 | Idaho | $100 | $100 |
| 9 | Oklahoma | $50 | $100 |
| 10 | New Mexico | $125 | $50 |
| 11 | Minnesota | $155 | $155 |
| 12 | Michigan | $60 | $50 |
| 13 | Texas | $300 | $300 |
| 14 | West Virginia | $100 | $100 |
| 15 | Montana | $70 | $70 |
| 16 | Indiana | $98 | $98 |
| 17 | Nebraska | $165 | $205 |
| 18 | Iowa | $50 | $50 |
| 19 | Utah | $70 | $70 |
| 20 | Louisiana | $75 | $100 |
| 21 | Wisconsin | $100 | $170 |
| 22 | Arizona | $260 | $250 |
| 23 | Georgia | $190 | $100 |
| 24 | North Dakota | $135 | $135 |
| 25 | New York | $125 | $650 |
| 26 | Virginia | $75 | $100 |
| 27 | Wyoming | $102 | $102 |
| 28 | South Dakota | $150 | $150 |
| 29 | Kansas | $89 | $160 |
| 30 | Washington | $210 | $210 |
| 31 | Arkansas | $45 | $45 |
| 32 | Illinois | $150 | $150 |
| 33 | New Hampshire | $100 | $100 |
| 34 | Kentucky | $40 | $40 |
| 35 | Maine | $145 | $175 |
| 36 | Oregon | $100 | $100 |
| 37 | Florida | $70 | $125 |
| 38 | New Jersey | $125 | $125 |
| 39 | Connecticut | $250 | $120 |
| 40 | Alabama | $200 | $200 |
| 41 | Delaware | $89 | $90 |
| 42 | Alaska | $250 | $250 |
| 43 | North Carolina | $125 | $125 |
| 44 | Vermont | $125 | $125 |
| 45 | Maryland | $120 | $100 |
| 46 | Tennessee | $100 | $300 |
| 47 | California | $125 | $95 |
| 48 | Rhode Island | $230 | $150 |
| 49 | Nevada | $725 | $450 |
| 50 | Washington DC | $220 | $220 |
| 51 | Massachusetts | $275 | $500 |
Costs to Form a Corporation in Each State
The average cost to form a corporation was $141 in required filing, publication, and initial report fees. The range of formation fees ranged from a low of $40 in Kentucky up to a high of $725 in Nevada.
The average annual cost for maintaining a corporation was $147 nationwide, which includes both annual report fees as well as minimum franchise fees and taxes. These maintenance fees ranged from as low as $0 in Minnesota, Ohio, Oklahoma, Pennsylvania, and Texas, to as high as $825 in California.
| State | Initial Filing Fees | Publication Fees | Initial Report Fees | Annual Report Fees | Franchise or Minimum Tax | Initial Fees Total | Renewal Fees Total |
|---|---|---|---|---|---|---|---|
| Alabama | $200 | $100 | $200 | $100 | |||
| Alaska | $250 | $100 | $250 | $100 | |||
| Arizona | $60 | $200 | $45 | $50 | $260 | $95 | |
| Arkansas | $45 | $150 | $45 | $150 | |||
| California | $100 | $25 | $25 | $800 | $125 | $825 | |
| Colorado | $50 | $10 | $50 | $10 | |||
| Connecticut | $250 | $100 | $250 | $250 | $350 | ||
| Delaware | $89 | $225 | $89 | $225 | |||
| Florida | $70 | $150 | $70 | $150 | |||
| Georgia | $100 | $40 | $50 | $50 | $190 | $50 | |
| Hawaii | $50 | $15 | $50 | $15 | |||
| Idaho | $100 | $10 | $100 | $10 | |||
| Illinois | $150 | $75 | $150 | $75 | |||
| Indiana | $98 | $32 | $98 | $32 | |||
| Iowa | $50 | $45 | $50 | $45 | |||
| Kansas | $89 | $55 | $89 | $55 | |||
| Kentucky | $40 | $15 | $175 | $40 | $190 | ||
| Louisiana | $75 | $35 | $75 | $35 | |||
| Maine | $145 | $85 | $145 | $85 | |||
| Maryland | $120 | $300 | $120 | $300 | |||
| Massachusetts | $275 | $125 | $456 | $275 | $581 | ||
| Michigan | $60 | $25 | $60 | $25 | |||
| Minnesota | $155 | $155 | |||||
| Mississippi | $50 | $25 | $50 | $25 | |||
| Missouri | $58 | $21 | $45 | $79 | $45 | ||
| Montana | $70 | $15 | $50 | $70 | $65 | ||
| Nebraska | $65 | $100 | $30 | $165 | $30 | ||
| Nevada | $75 | $650 | $650 | $725 | $650 | ||
| New Hampshire | $100 | $100 | $100 | $100 | |||
| New Jersey | $125 | $75 | $500 | $125 | $575 | ||
| New Mexico | $100 | $25 | $25 | $50 | $125 | $75 | |
| New York | $125 | $9 | $25 | $125 | $34 | ||
| North Carolina | $125 | $20 | $200 | $125 | $220 | ||
| North Dakota | $135 | $25 | $135 | $25 | |||
| Ohio | $99 | $99 | |||||
| Oklahoma | $50 | $ | $50 | ||||
| Oregon | $100 | $100 | $150 | $100 | $250 | ||
| Pennsylvania | $125 | $132 | $257 | ||||
| Rhode Island | $230 | $50 | $400 | $230 | $450 | ||
| South Carolina | $135 | $25 | $135 | $25 | |||
| South Dakota | $150 | $50 | $150 | $50 | |||
| Tennessee | $100 | $20 | $100 | $100 | $120 | ||
| Texas | $300 | $300 | |||||
| Utah | $70 | $20 | $100 | $70 | $120 | ||
| Vermont | $125 | $35 | $250 | $125 | $285 | ||
| Virginia | $75 | $100 | $75 | $100 | |||
| Washington | $200 | $10 | $60 | $210 | $60 | ||
| Washington D.C. | $220 | $300 | $250 | $220 | $550 | ||
| West Virginia | $100 | $25 | $100 | $25 | |||
| Wisconsin | $100 | $40 | $100 | $40 | |||
| Wyoming | $102 | $52 | $102 | $52 |
Costs to Form an LLC in Each State
The nationwide average annual cost to form a LLC was $149 in state filing, publication, and initial report fees. These formation fees ranged from a minimum of $40 in Kentucky to a maximum of $650 in New York.
The average annual maintenance cost for LLCs was $119, including annual report fees and franchise and other minimum taxes. Many states, including Arizona, Minnesota, Mississippi, Missouri, New Mexico, Ohio, Pennsylvania, South Carolina, and Texas, charged $0 annual fees. The highest fees were charged by California, which had minimum taxes and fees of $825 for LLCs.
| State | Initial Filing Fees | Publication Fees | Initial Report Fees | Annual Report Fees | Franchise or Minimum Tax | Initial Fees Total | Renewal Fees Total |
|---|---|---|---|---|---|---|---|
| Alabama | $200 | $- | $100 | $200 | $100 | ||
| Alaska | $250 | $100 | $250 | $100 | |||
| Arizona | $50 | $200 | $- | $250 | $- | ||
| Arkansas | $45 | $150 | $45 | $150 | |||
| California | $70 | $25 | $25 | $800 | $95 | $825 | |
| Colorado | $50 | $10 | $50 | $10 | |||
| Connecticut | $120 | $80 | $120 | $80 | |||
| Delaware | $90 | $300 | $90 | $300 | |||
| Florida | $125 | $139 | $125 | $139 | |||
| Georgia | $100 | $50 | $100 | $50 | |||
| Hawaii | $50 | $15 | $50 | $15 | |||
| Idaho | $100 | $- | $10 | $100 | $10 | ||
| Illinois | $150 | $75 | $150 | $75 | |||
| Indiana | $98 | $32 | $98 | $32 | |||
| Iowa | $50 | $45 | $50 | $45 | |||
| Kansas | $160 | $55 | $160 | $55 | |||
| Kentucky | $40 | $15 | $175 | $40 | $190 | ||
| Louisiana | $100 | $35 | $100 | $35 | |||
| Maine | $175 | $85 | $175 | $85 | |||
| Maryland | $100 | $300 | $100 | $300 | |||
| Massachusetts | $500 | $500 | $500 | $500 | |||
| Michigan | $50 | $25 | $50 | $25 | |||
| Minnesota | $155 | $- | $155 | $- | |||
| Mississippi | $50 | $- | $50 | $- | |||
| Missouri | $50 | $- | $50 | $- | |||
| Montana | $70 | $20 | $70 | $20 | |||
| Nebraska | $105 | $100 | $13 | $205 | $13 | ||
| Nevada | $450 | $350 | $450 | $350 | |||
| New Hampshire | $100 | $100 | $100 | $100 | |||
| New Jersey | $125 | $75 | $125 | $75 | |||
| New Mexico | $50 | $- | $50 | $- | |||
| New York | $200 | $450 | $9 | $25 | $650 | $34 | |
| North Carolina | $125 | $200 | $125 | $200 | |||
| North Dakota | $135 | $50 | $135 | $50 | |||
| Ohio | $99 | $- | $99 | $- | |||
| Oklahoma | $100 | $25 | $100 | $25 | |||
| Oregon | $100 | $100 | $100 | $100 | |||
| Pennsylvania | $125 | $- | $125 | $- | |||
| Rhode Island | $150 | $50 | $400 | $150 | $450 | ||
| South Carolina | $110 | $- | $110 | $- | |||
| South Dakota | $150 | $50 | $150 | $50 | |||
| Tennessee | $300 | $300 | $100 | $300 | $400 | ||
| Texas | $300 | $- | $300 | $- | |||
| Utah | $70 | $20 | $70 | $20 | |||
| Vermont | $125 | $35 | $250 | $125 | $285 | ||
| Virginia | $100 | $50 | $100 | $50 | |||
| Washington | $200 | $10 | $60 | $210 | $60 | ||
| Washington D.C. | $220 | $300 | $250 | $220 | $550 | ||
| West Virginia | $100 | $25 | $100 | $25 | |||
| Wisconsin | $170 | $25 | $170 | $25 | |||
| Wyoming | $102 | $52 | $102 | $52 |
Methodology
To determine the business registration costs for businesses in the United States, AdvisorSmith examined fees for forming and maintaining corporations and LLCs across the 50 states and the District of Columbia. We created a model that was weighted two-thirds toward LLC fees and one-third toward corporation fees and ranked the states based on a composite of their LLC and corporation fees. We used filing fees published by the secretary of state or similar offices in each state. Our analysis did not include any legal fees paid to attorneys or fees paid to registered agents.
To determine corporation initial filing fees, we determined the minimum corporation filing fees for corporations in each state. We also included any additional one-time fees such as publication fees (estimated) and initial report fees to calculate the total corporation filing cost. Additionally, we calculated the cost to maintain the corporation, which consists of corporation annual report fees, as well as franchise tax or similar fees.
To determine the franchise tax fees, we included any recurring, flat-rate, or minimum tax levied on corporations in the state that were not variable in nature. States have numerous names for these fees, including franchise tax, excise tax, minimum tax, minimum income tax, minimum gross receipts tax, and others. For taxes that were levied in combination with a variable tax, such as a combined franchise/income tax, we only counted the minimum required flat portion of the tax or fee.
For LLC fees, we also calculated the minimum LLC organization fees in each state, including any one-time fees such as publication fees and initial report fees. We also included the cost to maintain the LLC, which included any annual report fees and any minimum franchise tax or fees levied on LLCs.