LLC compliance costs by state: the complete 2026 ranking

Updated April 2026

How much does it actually cost to keep your LLC in good standing? The answer depends entirely on your state — and the gap between the cheapest and most expensive is staggering. A Wyoming LLC can maintain compliance for under $100 per year. A New York LLC can cost $3,500 to $28,000 in year one alone.

This ranking covers the real, recurring annual cost of LLC compliance in all 50 states — not just the filing fee, but the total mandatory annual cost including annual reports, franchise taxes, entity-level taxes, and required business license fees. These are the costs you cannot avoid as long as your LLC exists.

The 10 cheapest states for LLC compliance

1. New Mexico — $0/year. New Mexico requires no annual report and no franchise tax for LLCs. The only recurring costs are maintaining a registered agent and any applicable gross receipts tax registrations. For pure compliance overhead, New Mexico is effectively free.

2. Missouri — $0/year. Missouri does not require LLCs to file an annual report with the Secretary of State. No annual report fee, no franchise tax at the state level. Your obligations are registered agent maintenance and local business licenses, which vary by city.

3. Ohio — approximately $0/year for ongoing. Ohio doesn't require LLC annual reports after the initial filing. The state does impose the Commercial Activity Tax on businesses over $150,000 in gross receipts, but for most small LLCs, the recurring state-level compliance cost is minimal.

4. Arizona — approximately $0 state fee plus $50–$300 publication. Arizona doesn't charge for an LLC annual report, but does require an annual publication in an approved newspaper. Publication costs vary by newspaper and county.

5. Idaho — $0/year. Idaho's LLC annual report has no filing fee. You still must file the report — the state will dissolve your LLC if you don't — but the direct cost is zero.

6. Minnesota — $0/year. Minnesota's annual renewal has no filing fee. Same trap as Idaho: the filing is mandatory and failure to file triggers dissolution, despite costing nothing.

7. Nebraska — $10 every two years ($5/year average). Nebraska's biennial report costs just $10 online. At an average of $5 per year, this is one of the lowest recurring compliance costs in the country.

8. Colorado — $10/year. Colorado's periodic report costs $10 online. Simple, fast, and cheap — though the state moves quickly to dissolve entities that don't file.

9. Hawaii — $15/year. Hawaii's LLC annual report is $15, due on the anniversary quarter of formation.

10. Kentucky — $190/year. Wait — $190 doesn't sound cheap. But Kentucky's cost is transparent and predictable: $175 LLET minimum plus $15 annual report. Many states that appear cheaper on paper have hidden costs that push the real number higher. Kentucky's $190 is the full, honest number with no surprises.

The 10 most expensive states for LLC compliance

1. New York — $3,500 to $28,000+ in year one. New York's publication requirement alone costs $300 to $2,000+ depending on your county. Add the biennial statement fee, the MTA surcharge, city taxes for NYC businesses, and the multi-layer state tax system, and New York is the most expensive state for LLC compliance by a wide margin. Ongoing annual costs after year one are lower but still substantial.

2. California — $800+/year minimum. California's $800 annual franchise tax is owed regardless of revenue, profit, or business activity. Add the biennial Statement of Information ($25 plus $250 late penalty), the gross receipts fee for LLCs earning over $250,000, and California's aggressive labor law enforcement, and the true compliance cost exceeds $1,000 for most active businesses.

3. Massachusetts — $500+/year. Massachusetts charges $500 just for the LLC annual report — one of the highest filing fees in the country. Add state taxes and the Paid Family and Medical Leave program contributions, and Massachusetts is consistently one of the most expensive states for small business compliance.

4. Nevada — $350+/year. Despite its "no tax" reputation, Nevada requires a $150 Annual List filing plus a $200 State Business License fee — $350 per year in mandatory fees before any other obligations. The Commerce Tax and Modified Business Tax add further costs for larger businesses.

5. Tennessee — $400+/year minimum. Tennessee's annual report costs $300 minimum (scaling up to $3,000 based on member count), plus a $100 minimum franchise tax. A single-member LLC pays at least $400 per year. Multi-member LLCs pay significantly more.

6. Delaware — $300+/year. Delaware's annual report fee is $300, and the franchise tax for corporations can reach into six figures if you don't choose the right calculation method. LLCs face lower direct costs but still pay the $300 annual tax.

7. Illinois — $75/year base plus substantial taxes. Illinois's $75 annual report fee is moderate, but the state's layered tax environment — 4.95% flat income tax, 7% corporate income tax, Personal Property Replacement Tax, and municipal taxes in Chicago and Cook County — pushes the real compliance cost well above the filing fee.

8. North Carolina — $400+/year. North Carolina's $200 annual report fee plus a separate $200 privilege tax creates a $400 minimum annual obligation — two separate filings with the same dollar amount but different forms and agencies.

9. New Jersey — $75/year base plus high taxes. The $75 annual report fee understates New Jersey's true cost. The state's 11.5% top corporate tax rate, aggressive nexus enforcement, and minimum filing fees for LLCs make it one of the most expensive states for business taxation overall.

10. Oregon — $100/year plus Corporate Activity Tax. Oregon's $100 annual report fee is moderate, but the Corporate Activity Tax (0.57% of gross receipts over $1 million) catches growing businesses off guard. Oregon's lack of sales tax is offset by higher income tax rates and the CAT.

The states that trick you with hidden costs

Some states appear cheap on paper but have compliance costs that only reveal themselves after you've formed your LLC.

Nevada markets itself as "no tax" but charges $350/year in mandatory fees. Arizona has no annual report fee but requires annual newspaper publication that costs $50–$300. Texas has no annual report but requires a franchise tax report filing even for $0-revenue businesses, with forfeiture as the penalty for non-filing. Washington has no income tax but imposes a Business & Occupation tax on gross receipts.

The lesson: never choose a state for formation based solely on its advertised filing fee. The real cost of compliance includes franchise taxes, entity-level taxes, publication requirements, local business licenses, and penalty structures that vary wildly from state to state.

How to know your state's real compliance cost

The numbers above give you the general picture, but your actual compliance cost depends on your entity type, your revenue level, your industry, your number of employees, and which specific localities you operate in. A restaurant in Louisville, Kentucky faces different compliance costs than a freelance consultant in Louisville, even though both are Kentucky LLCs.

Our state-specific compliance guides break down the real numbers for your state — every filing, every fee, every deadline, and every penalty — organized by phase of business development so you know exactly what applies to your situation.

Find your state's complete compliance guide here — 27 pages of every requirement specific to your state, for $37.