The 10 Cheapest States to Form an LLC in 2026

Every "cheapest state" list on the internet ranks by filing fee. That's the wrong number. A state that charges $50 once and $0 forever is cheaper than a state that charges $40 once and $150 a year — by $710 over five years. So we ranked all 51 jurisdictions by filing fee + 5 years of recurring state fees. Here are the ten winners for 2026.

The top 10 (5-year state cost)

• Tied 1st — Arizona, New Mexico, Mississippi, Missouri — $50 total each. $50 filing and no recurring state fee at all. Arizona adds a county publication rule in most counties; New Mexico adds strong owner privacy.
• 5. Ohio — $99 total. $99 once, nothing after.
• 6. Idaho — $100 total. $100 filing, annual report required but free.
• 7. South Carolina — $110 total. $110 once, no annual fee for most LLCs.
• 8. Kentucky — $115 total. The cheapest filing fee among low-cost states ($40) plus a tiny $15/yr report.
• 9. Hawaii — $125 total. $50 filing + just $15/yr.
• 10. Nebraska — $132.50 total. $100 filing + only $13 every two years (plus a one-time publication notice, typically $40–$200).

Just missing the cut: Montana at $135 ($35 filing — the lowest in the US — plus $20/yr) and Utah at $144.

The catch: cheapest only counts in your home state

Here's the part the hype leaves out. If you live and operate in Texas but form in New Mexico to "save money," Texas law requires you to register your New Mexico LLC in Texas as a foreign LLC — $750 filing in Texas's case — and pay both states' fees. Your "cheap" LLC just became the most expensive option on the table.

The exceptions are genuinely location-independent online businesses with no office, employees, or inventory in any state — for them, New Mexico and Wyoming ($400 over 5 years, with privacy and no income tax) are legitimately popular.

And the most expensive?

For contrast: California costs $4,120 over five years ($70 + $810/yr), Massachusetts $3,000 ($500 + $500/yr), and Nevada $2,175. If your business is based in one of those states, that's simply the cost of doing business there — forming elsewhere doesn't legally avoid it.

Bottom line: check your own state's 5-year rank in our directory first. If you're lucky enough to live in a no-fee state, you already own the cheapest LLC in America.

Fees verified against official state sources — last checked October 26, 2026.