Starting a successful venture in business is not only about innovative ideas and products, but also about the right financial strategies. Especially for entrepreneurs who want to form a Limited Liability Company (LLC), formation costs and annual fees play an important role.
The costs of forming an LLC Company in Usa can vary greatly by state. In this article, we will examine in detail the 15 states where it is most affordable to form an LLC and the startup and annual costs of each state, providing you with the information you need to form your business at the most affordable cost. With this information, you can choose the state that best suits your budget and launch your business successfully.
To form a successful Limited Liability Company (LLC), you will need to understand your state's formation fee and related recurring fees, such as renewal fees, annual report fees, or franchise taxes.
Our website contains detailed LLC company formation guides for the 50 states of the USA. We've included a link to each state in the list below. Thus, you can easily access the details about the state you choose.
You can set up your LLC company economically through Northwest Registered Agent by paying $39 + state fee.
1.Kentucky
Kentucky is the cheapest state to form an LLC; The application fee is only $40. The state also offers incentive programs that provide financial assistance to small businesses. To learn more about Kentucky LLCs, check out .
LLC application fee: $40
Annual fee: $15
2.Arkansas
The second cheapest state to form an LLC is Arkansas. In this state of 3 million people, approximately 260,000 small businesses employ 500,000 people and small business establishments are expected to increase. Check out this article to learn more about Arkansas LLCs
LLC application fee: $45
Annual fee: $150
3. Arizona
Although it took a big hit during the pandemic, Arizona is now back and leading the nation in job growth, making it a great state to start an LLC. Learn more about Arizona LLCs .
LLC application fee: $50
Annual fee: $0
4.Mississippi
Known for its low corporate tax rate, this state has a diverse and educated workforce thanks to 37 in-state colleges and universities. Details about the state are here .
LLC application fee: $50
Annual fee: $0
5.Missouri
A strong community, low cost of living, and $0 annual fees are just a few reasons why many small businesses choose to form a Missouri LLC. Details on Missouri State are here .
LLC application fee: $50
Annual fee: $0
6. New Mexico
The mild climate and business-friendly tax policy play a big role in why many entrepreneurs choose to form an LLC in New Mexico. You can view the company formation guide and details in New Mexico .
LLC application fee: $50
Annual fee: $0
7.Colorado
Known for its beautiful landscapes, this state also attracts millions of visitors each year, many of whom enjoy the outdoor lifestyle and activities it offers. This makes it a great place to start a small business focused on the outdoors. Click for more information .
LLC application fee: $50
Annual fee: $10
8. Hawaii
The Aloha State, where you can find a lot of support regarding LLC formation and starting a business, also stands out with its wonderful weather. If you would like information about Hawaii LLCs, click here .
LLC application fee: $50
Annual fee: $15
9. Michigan
Although this state ranks ninth in terms of cost of starting a business, Michigan is ranked as the fourth most affordable state in terms of cost of living.
LLC application fee: $50
Annual fee: $25
10.Iowa
Unlike other states on this list, Iowa's fee is paid every two years. Iowa is also one of the most affordable states, with affordable housing, a low cost of living, and no personal property taxes. Click for the Iowa LLC guide .
LLC application fee: $5
Annual fee: $50
11.Montana
Montana can be quite high, but the annual fee is low, making it a great place to start your business in the long run.
LLC application fee: $50
Annual fee: $20
12.Utah
Utah boasts a high quality of life, low cost of living, and a flat tax rate (4.95%) no matter how much you earn, making it a logical option for starting a new business.
LLC application fee: $54
Annual fee: $15
13.California
Although California's annual wage is high (called the franchise tax), when you consider that the Golden State has a GDP of nearly $3 trillion, you may want to start a business here. After all, if California were its own country, it would have the fifth largest economy! Learn more about forming a California LLC .
LLC application fee: $75 (includes $5 certification fee)
Annual fee: $800
14. Delaware
In addition to making this list for its affordable state filing fee, this state is also known for its lack of sales tax and privacy protections. Delaware LLCs are not required to include board members' personal information, including names and phone numbers. Applications can be made anonymously. Details here
LLC application fee: $110
Annual fee: $300
15. Indiana
At the bottom of the list is Indiana here, 512,438 small businesses employ 1.4 million people — 44.9% of the private sector workforce.
LLC application fee: $95
Annual fee: $50
