Starting an LLC usually comes down to a handful of core steps: choose the state where you’ll form the business, confirm your LLC name, appoint a registered agent, file the state formation document, and pay the filing fee.

Once the state approves your LLC, you’ll usually want an operating agreement, an EIN if your business needs one, a separate business bank account, and any tax registrations or licenses required for what you do.

The basic process is similar across the country. The details are not.

Filing fees, forms, annual reports, franchise taxes, publication rules, processing times, and post-formation requirements can change substantially from one state to another.

Choose your state below for the exact filing fee, formation form, processing time, ongoing requirements, and step-by-step instructions.

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LLC Formation at a Glance

Question	Short answer
How much does it cost to form an LLC?	State formation fees currently range from $35 in Montana to $500 in Massachusetts. Extra costs can apply depending on the state and how you set up the business.
Where do I file?	Usually with the Secretary of State or the state agency responsible for business entities.
Do I need a registered agent?	Your formation filing generally requires a registered agent, resident agent, or agent for service of process in the state.
Do I need an EIN?	Many LLCs do. The IRS issues EINs for free. Eligible U.S.-based applicants can receive one online directly from the IRS.
Do LLCs file BOI reports?	U.S.-created LLCs are currently exempt from federal BOI reporting.
Are there yearly fees?	It depends on the state. Some have annual reports, biennial filings, franchise taxes, annual LLC taxes, or combinations of them.
Should you form in New Mexico, Delaware, or Wyoming?	Usually only when you have a specific reason. For many small businesses, forming where you actually operate is simpler and cheaper. We’ll cover this below.

How We Verified This Guide

We built this guide from state filing instructions, Secretary of State pages, official fee schedules, IRS guidance, provider checkout pages, and our own LLC formation research.

For the national sections, we focused on rules that apply broadly across states, such as choosing a name, appointing a registered agent, filing the formation document, creating an operating agreement, getting an EIN, opening a business bank account, and tracking ongoing compliance.

For state-specific facts, we check the official state source whenever possible, including:

• the state filing agency
• the official formation form or online filing portal
• filing fees
• registered-agent requirements
• annual report or franchise tax requirements
• publication requirements
• processing-time guidance where available

We also separate state-required costs from optional service-company costs for clarity sake.

That distinction matters because a “$0 LLC formation” offer does not mean the LLC itself costs $0. You still pay your state’s filing fee, and some services make most of their money through registered-agent renewals, EIN add-ons, compliance subscriptions, business-address products, or other upsells.

Fees and rules can change. We update priority guides when state agencies or service providers change their pricing, forms, or requirements. Before filing, use your state-specific guide and confirm the final fee on the official state filing page.

What Does It Cost to Start an LLC?

The state filing fee is only one part of the cost.

Depending on where you form and how much you handle yourself, your first-year expenses can include:

• the state formation fee
• a registered agent
• optional expedited processing
• state or local licenses
• publication costs in states that require them
• annual or biennial reports
• franchise or LLC taxes
• a formation service if you choose to use one

Some of these are required. Others are completely optional.

For example, you do not have to pay a formation company to obtain an EIN. The IRS issues EINs directly at no charge.

Current LLC Cost Examples

Rather than treating every recurring charge as an “annual fee,” this table separates the formation fee from the main ongoing state requirement.

State	Formation fee	Main ongoing state requirement	Important detail
Montana	$35	Annual report	Montana waived the annual-report fee for filings made by April 15, 2026. Reports filed after April 15 carry a $35 fee.
Wyoming	$100	Annual report/license tax	The annual license tax is at least $60, or $0.0002 of Wyoming assets if that calculation is higher.
Delaware	$110	$400 annual LLC tax	Delaware LLCs do not file the corporation-style annual report, but they currently pay a $400 annual tax due by June 1. The tax increased from $300 effective for 2026.
Florida	$125	$138.75 annual report	The annual report is due each year. Filing after May 1 triggers a $400 late fee.
Texas	$300	Annual information filing and franchise-tax rules	For 2026 and 2027, the no-tax-due threshold is $2.65 million. LLCs at or below it generally still file the Public Information Report even though they may owe no franchise tax.
California	$70	$20 Statement of Information every 2 years, plus $800 annual LLC tax	California LLCs generally pay an $800 annual tax. The $20 Statement of Information is biennial, not yearly.
New York	$200	$9 biennial statement	Most New York LLCs also have a publication requirement. Newspaper costs vary by county, and the Certificate of Publication carries a separate $50 state filing fee.
Massachusetts	$500	$500 annual report	Massachusetts is one of the more expensive states for both formation and ongoing state filings.

Important: These are state-level examples. They do not include registered-agent services, local permits, professional licensing, federal taxes, or optional formation-company fees.

That distinction matters because a “$0 LLC formation” offer from a service company does not mean the LLC itself costs $0. You still pay the state’s required filing fee.

Should You Form an LLC?

An LLC makes sense for many small businesses, but you do not need one simply because you started making money.

The main reason to form an LLC is to create a legal business entity separate from you as an individual. That separation can help protect your personal assets from business debts and liabilities, although the protection is not absolute and depends on how the business is run and the circumstances of a claim.

An LLC can also make ownership clearer when more than one person owns the business, and it gives you more options for how the business is taxed.

The SBA notes that your choice of business structure affects personal liability, taxes, paperwork, and your ability to raise money.

An LLC is worth considering if:

• your business has customers, contracts, debt, employees, or other meaningful liability exposure
• you want to keep the business legally separate from your personal affairs
• there are two or more owners
• you own business assets or expect the business to accumulate them
• clients, vendors, lenders, or partners expect to deal with a registered business entity
• you want the flexibility to choose a different federal tax treatment later if it makes sense

You may not need one immediately if:

You are testing a very small, low-risk side business with little revenue and no meaningful contractual or liability exposure.

A sole proprietorship is simpler because there is no separate entity to form at the state level. The tradeoff is that the business and owner are generally not legally separate in the way an LLC and its members are.

That does not mean you should wait until something goes wrong before forming an LLC. It means the cost and paperwork should make sense for the business you are actually running.

An LLC Does Not Automatically Lower Your Taxes

This is worth clearing up before you file.

LLC is a legal structure created under state law. It is not one single federal tax classification.

By default, the IRS generally treats:

• a one-owner domestic LLC as part of the owner’s tax return, unless it elects corporate treatment
• a domestic LLC with two or more members as a partnership, unless it elects corporate treatment

An LLC can also elect to be taxed as a corporation when eligible.

So forming an LLC does not, by itself, create a special tax rate.

Later, once your revenue and profit justify it, you can discuss elections such as S corporation taxation with a qualified tax professional.

For now, choose the entity because it fits the business. Don’t form one because somebody on TikTok said an LLC is a tax write-off.

What You Need Before You File an LLC

You do not need a giant business plan before forming an LLC.

But gathering a few details (as listed below) first makes the actual filing much easier.

1. The state where you want to form

For most U.S.-based owners, this is usually the state where they actually operate. Non-U.S. owners, holding companies, investor-driven startups, or businesses with multi-state operations may need a different analysis.

We’ll cover that decision in a moment because forming in Wyoming or Delaware without understanding foreign registration can create more paperwork, not less.

2. A few possible LLC names

Have more than one option ready.

Your first choice may already be taken or too similar to an existing entity.

The exact naming rules differ by state, but your name will generally need to identify the business as a limited liability company using wording or an abbreviation accepted by that state.

You can check availability through the state’s business-entity search before filing.

3. Your registered agent

You’ll need the name and address of the person or company that will receive official legal and government documents for the LLC.

Depending on the state’s rules, you may be able to serve as your own registered agent.

The tradeoff is that the address used for the agent is typically part of the business record, and someone needs to be reliably available there during the required hours.

4. Your business address

Your filing may ask for a principal office, mailing address, or both.

Do not assume that using a registered-agent service automatically keeps every personal address off every public filing.

What becomes public depends on the state, the form, and which addresses the state requires.

5. Who owns the LLC

Know who the members are before filing.

For a single-member LLC, that’s simple.

If there are multiple owners, agree on the basics before the paperwork goes in:

• ownership percentages
• who contributes what
• who makes decisions
• how profits are distributed
• what happens if somebody wants to leave

The formation filing may not ask for all of that information, but your operating agreement should address it.

6. Member-managed or manager-managed

Many state filings ask how the LLC will be managed.

A member-managed LLC is run directly by its owners.

A manager-managed LLC gives management authority to one or more designated managers, who may or may not be members.

For a simple owner-operated business, member-managed is common.

For an LLC with passive investors or several owners who do not all participate in day-to-day decisions, manager-managed may make more sense.

7. A payment method

State filing fees are generally due when you submit the formation document.

Some states also charge card-processing fees, expedited-service fees, or other optional charges.

Use the state selector above to check the current amount before filing.

Which State Should You Form Your LLC In?

Form your LLC in the state where you actually do business.

If you live in Georgia and run your business from Georgia, forming a Wyoming LLC usually does not magically turn it into a Wyoming-only business.

You may still have to register the Wyoming LLC as a foreign LLC in Georgia and comply with Georgia’s requirements.

That can leave you maintaining the LLC in two states instead of one.

The exact definition of “doing business” or “transacting business” varies by state, so businesses with operations across several states may need more specific advice.

What Is a Foreign LLC?

The terminology can be confusing.

A “foreign LLC” does not necessarily mean a business from another country.

In state business law, it commonly means an LLC formed under the laws of another state or jurisdiction.

Texas, for example, states that whether an entity is domestic or foreign depends on where it was formed and which jurisdiction’s law governs it, not where its main office happens to be.

So:

You form an LLC in Wyoming.

You operate the business in Texas.

From Texas’s perspective, you have a foreign LLC.

If your activities amount to transacting business in Texas, the state requires the foreign LLC to register. Texas currently charges $750 for the foreign LLC registration application, and late registration can trigger additional fees.

That’s an unusually expensive example, but it shows why choosing a cheap formation state without considering where you actually operate can backfire.

You could save a little on one filing and create a much larger obligation somewhere else.

Home State vs. Delaware, Wyoming, or New Mexico

You’ve probably seen articles and videos claiming one of these states is the “best” place to form an LLC.

There is no universally best state to form an LLC. There is only the state that fits your business, tax, privacy, investor, and operating situation.

Option	When it may make sense	What people often miss
Your home/operating state	You primarily run the business from one state	Usually the simplest route because you avoid creating an out-of-state entity that may also need foreign registration
Delaware	You have a specific legal, investor, financing, or governance reason for choosing Delaware	You still need a Delaware registered agent and may need foreign registration where you actually operate
Wyoming	You have a genuine reason to domicile there and understand where else the LLC must register	Low state fees do not eliminate obligations in states where the business is actually conducted
New Mexico	You have a specific reason for choosing New Mexico, and its filing setup fits the business	Forming there does not exempt the company from registration or taxes elsewhere

Let’s look at each one more closely.

When Delaware Can Make Sense

Delaware’s reputation isn’t made up.

The state has a long-established business-law system, flexible entity statutes, and its Court of Chancery specializes in business disputes. Delaware says more than two-thirds of Fortune 500 companies have chosen the state as their legal home.

That can matter when:

• sophisticated investors are involved
• your attorneys or investors specifically want Delaware law
• the business has a more complicated ownership or governance arrangement
• you expect transactions where Delaware’s established business case law is genuinely useful

But “Fortune 500 companies use Delaware” is not, by itself, a reason for a one-person landscaping company in Florida to form there.

A Delaware entity must maintain a Delaware registered agent. If the company is also doing business somewhere else, that other state may require its own registration and fees. Delaware itself uses the same concept for businesses formed elsewhere that operate in Delaware.

When Wyoming Can Make Sense

Wyoming is frequently promoted because its state LLC costs are relatively modest.

The state currently charges $100 to file an LLC’s articles of organization. Its annual license tax is at least $60, or a higher amount based on Wyoming assets when that calculation applies.

That can make Wyoming worth considering when you have a real reason to establish the entity there and you’re not simply trying to avoid requirements in the state where the business operates.

The mistake is assuming:

“I formed in Wyoming, therefore only Wyoming rules matter.”

They don’t necessarily.

If your Wyoming LLC conducts business in another state, that state can still require foreign registration, a registered agent, reports, taxes, licenses, or other compliance.

When New Mexico Can Make Sense

New Mexico tends to gets recommended a lot for online businesses, privacy-focused founders, holding companies, and non-U.S. residents.

The appeal is easy to understand: the NM state filing fee is low, the maintenance burden is light, and the formation filing does not require the same level of public owner/member disclosure like some other states. New Mexico’s domestic LLC filing instructions list a $50 filing fee for Articles of Organization and require a registered agent acceptance statement with the filing.

That can make New Mexico worth considering especially when:

• you do not have a clear U.S. operating state
• you are a non-U.S. founder forming a U.S. LLC
• you are creating a holding company
• you want a lower-maintenance state than Delaware, California, or Nevada
• you understand that “privacy” does not mean “invisible”

A New Mexico LLC does not automatically hide you from banks, the IRS, payment processors, licensing agencies, etc. It also does not eliminate tax or registration obligations in another state where your business is operating.

For example, if you form a New Mexico LLC but run the business from California, New York, Texas, Georgia, or Florida, that operating state may still treat your company as doing business there. That can trigger foreign LLC registration, a local registered agent, state tax registrations, licenses, reports, and other compliance obligations.

So I would not choose New Mexico just because a listicle called it the “best anonymous LLC state” or an anonymous user on Reddit recommends it.

Choose it only after checking:

• where the business will actually operate
• whether the LLC will need foreign registration elsewhere
• what information New Mexico makes public
• what information your bank, payment processor, tax agency, or licensing agency will still require
• whether you need a New Mexico registered agent
• whether the low-maintenance setup still fits your long-term plan

For many U.S.-based small business owners, the home or operating state is still simpler.

A Simple Rule for Choosing Your State

If you’re still unsure, start here:

You operate mainly from one U.S. state

Usually form there.

You have offices, employees, stores, or substantial operations in several states

You may have registration obligations in more than one state. Check each state’s rules before filing.

Investors or counsel specifically want Delaware

There may be a legitimate reason to use Delaware. Make the decision with the full registration and compliance picture in mind.

You’re choosing Wyoming or New Mexico because somebody told you it’s cheaper or more private

Compare the complete cost first.

A cheap filing fee is not a bargain if it creates another registered agent, another registration, another report, and another set of deadlines.

You live outside the United States

That’s a different situation.

Non-U.S. owners can form U.S. LLCs, but choosing the state involves different questions around business activity, federal tax reporting, EIN applications, banking, registered agents, and where customers or operations are located.

We’ll cover the basics later in this guide or just bookmark and read the non-U.S. founder guide.

Before You Pick an LLC State, Ask These Five Questions:

1. Where will I actually run the business?
2. Will I have employees, offices, inventory, or other physical operations in another state?
3. Will forming elsewhere require foreign registration where I operate?
4. What will the LLC cost over three years, not just on filing day?
5. Do I have a real legal, investor, operational, or privacy reason for choosing another state?

If you cannot give a clear answer to question five, your operating state is usually the place to investigate first.

How to Form Your LLC

The exact LLC forms and requirements vary by state, but most formations involve five steps:

1. Choose and check your LLC name
2. Appoint a registered agent
3. Decide how the LLC will be managed
4. File the formation document
5. Create an operating agreement

Use your state guide for the exact form, fee, filing portal, and state-specific requirements.

1. Choose and Check Your LLC Name

Your LLC needs a legal name your state will accept.

Most states require the name to:

• include an approved LLC designation, such as “LLC,” “L.L.C.,” or “Limited Liability Company”
• be distinguishable from certain existing business names on the state’s records
• avoid restricted or misleading words unless you have the required approval

For example, Texas requires an LLC name to be distinguishable from certain names already on file and prohibits wording that falsely suggests government affiliation or an unauthorized business activity.

Search the state database first

Check your state’s official business-name database before filing. Guide to LLC Name Search by State.

Try a few variations if your preferred name uses common words.

A preliminary name search is useful, but it is not a guarantee that your filing will be accepted.

State approval does not give you trademark rights

Your state may accept an LLC name even when someone else has rights to a similar brand.

Before spending heavily on a logo, packaging, advertising, or signage, also check the U.S. Patent and Trademark Office database and search the wider web.

Do you need to reserve the name?

Usually only if you want to hold the name before you’re ready to form the LLC.

Name-reservation rules, fees, and reservation periods vary by state. If you’re ready to file now, you can often skip this step.

2. Appoint a Registered Agent

Your LLC will generally need a person or company authorized to receive official legal and government documents in the state where it is formed.

Depending on the state, this role may be called a:

• registered agent
• statutory agent
• resident agent
• agent for service of process

When a registered agent service may be useful

A paid service can make sense if you:

• don’t have an eligible address in the state
• travel frequently
• don’t want to depend on being at one address during business hours
• are registering in a state where you do not live
• prefer not to use your home as the registered-office address

3. Decide How the LLC Will Be Managed

LLCs generally use one of two management structures.

Structure	How it works	Common fit
Member-managed	The owners take part in managing the LLC	Owner-operated businesses and many small LLCs
Manager-managed	One or more designated managers handle management	LLCs with passive owners or a separate management team

If you own and operate the business yourself, member-managed is often the simpler arrangement.

Manager-managed may make more sense when some owners are investors who won’t handle day-to-day decisions.

4. File Your LLC Formation Document

This is the state filing that creates the LLC.

The document’s name varies. Depending on the state, you may see:

• Articles of Organization
• Certificate of Formation
• Certificate of Organization

File the form your state requires with the agency that handles business entities.

Your state may ask for some combination of:

• LLC legal name
• principal or mailing address
• registered agent and registered office
• management structure
• member or manager information
• organizer information
• business purpose
• effective date
• organizer or authorized filer’s signature

The exact fields vary.

Who is the organizer?

The organizer is the person or entity that handles the formation filing.

It does not have to be one of the LLC’s owners.

For example, New York states that an organizer may be a person or business entity and does not have to be a member of the LLC.

NOTE: Organizer ≠ owner

Check the filing before submitting it

Before paying, verify:

• Name: Is the legal name spelled correctly?
• Registered agent: Is the person or company eligible and willing to serve?
• Addresses: Did you use the correct address in each field?
• Management: Did you choose member-managed or manager-managed intentionally?
• People listed: Are the required members, managers, or other governing persons correct?
• Effective date: Do you want the normal effective date or a delayed date if your state allows one?
• Fee: Are you paying the correct state filing fee?

Small mistakes can delay approval or force you to file a correction later.

When Is Your LLC Officially Formed?

Submitting the form does not always mean the LLC already exists.

The LLC generally becomes effective according to the formation rules of that state, often when the state files or accepts the document or on an approved later effective date.

Wait for confirmation that the filing has been accepted before treating the LLC as formed.

Processing times vary by state and can change with filing volume. Guide on how long it takes to form your LLC.

5. Create an Operating Agreement

An operating agreement sets the internal rules for the LLC.

It can cover:

• ownership
• member contributions
• voting rights
• management authority
• profit distributions
• adding or removing members
• transferring ownership
• member exits
• dissolution

The formation document creates the LLC.

The operating agreement sets out how the owners intend to run it.

Is an operating agreement required?

It depends on the state.

Avoid broad advice that says operating agreements are simply “optional.”

California says an operating agreement among the members is required, although it is kept with the LLC’s records rather than filed with the Secretary of State.

New York requires members to adopt a written operating agreement before, at the time of, or within 90 days after filing the Articles of Organization. It is also kept internally rather than filed with the Department of State.

Should a single-member LLC have one?

Even when state law does not require one, a written agreement can still be useful.

For a one-owner LLC, it can document:

• who owns the company
• who has authority to act for it
• how the LLC is managed
• how records are maintained
• what happens if ownership changes
• how the LLC can be dissolved

It can also give a bank, lender, accountant, or other third party a clear record of how the company is governed if they ask for one.

Multi-member LLCs need more detail

If two or more people own the LLC, the agreement should address issues such as:

• ownership percentages
• voting thresholds
• contributions
• distributions
• management authority
• admitting new members
• selling or transferring an interest
• member exits
• death or incapacity
• deadlocks
• buyouts
• dissolution

For a multi-member LLC, these points are worth settling before they become a disagreement.

Your LLC Is Formed. What Comes Next?

State approval gives you the LLC. It does not finish the setup.

The next steps can include:

EIN → business bank account → tax registrations → licenses → bookkeeping → ongoing state compliance

We’ll cover each of those next.

After Your LLC Is Approved….

Getting the state approval is the main formation step, but there are a few things to handle before you treat the setup as finished.

6. Get an EIN if You Need One

An EIN is the federal tax ID the IRS assigns to a business.

You generally need one if your LLC has employees, is taxed as a partnership or corporation, or has certain federal tax obligations. A single-member LLC without employees or applicable excise taxes may not need a separate EIN for federal income-tax purposes, although a bank or state agency may still ask for one.

Apply after the LLC has been formed with the state.

The IRS issues EINs directly and does not charge a fee.

If your principal place of business is outside the U.S., the IRS uses a different application process rather than its standard online EIN tool.

7. Open a Business Bank Account

Once you have the documents your bank requires, open an account for the LLC and use it for business transactions.

The IRS recommends keeping the business account separate from your personal checking account.

Banks may ask for:

• your formation documents
• EIN
• operating agreement
• identification
• ownership information

The exact requirements depend on the bank.

You don’t need a separate essay on bookkeeping here. The practical rule is enough:

Business money goes through the business account, and you keep records of what comes in and goes out.

8. Check Your Tax and Licensing Requirements

Creating the LLC does not automatically register you for every tax or license your business may need.

Depending on what you do and where you operate, you may need:

• sales-tax registration
• employer tax accounts
• state or local business licenses
• professional or industry licenses

Local licensing rules can come from the city or county as well as the state. The SBA recommends checking the relevant state and local government requirements for your location and activity.

Your state LLC guide should point you toward the main agencies to check.

9. Record Your Ongoing LLC Deadlines

After formation, your state may require things such as:

• annual or biennial reports
• franchise or LLC taxes
• information statements
• registered-agent updates
• license renewals

Some states also require additional filings or registrations shortly after formation.

IMPORTANT: Put the deadlines on your own calendar

One current BOI note

U.S.-created LLCs are currently exempt from federal beneficial ownership information reporting to FinCEN. Certain entities formed outside the U.S. and registered to do business here can still be subject to the rules.

Frequently Asked Questions

DIY vs Using a Formation Service

First-year pricing can be misleading. A formation service may look cheap on day one, but the real cost often shows up in year two and year three through registered-agent renewals, EIN add-ons, compliance subscriptions, or business-address products.

The Texas example below shows why you should compare the full three-year cost before choosing a service.

How to Start an LLC, All 50 States

Every state guide below includes the exact filing fee, form name, online processing time, annual compliance requirements, and state-specific quirks. We verify all fees directly on the Secretary of State website.

References