Short answer: for most small businesses, Delaware is not a bargain. Forming an LLC there and keeping it open for five years costs about $2,110 in state charges. That ranks 48 out of 51 (all 50 states plus DC, cheapest first). Only Tennessee, Massachusetts and California cost more.
What changed: Delaware’s yearly LLC tax is going from $300 to $400. The first $400 payment is due June 1, 2027. The $110 filing fee is unchanged.
Five-year state cost of one LLC, every state
We added each state’s filing fee to five years of its required yearly (or every-other-year) state charges. Delaware is shown in red.
The “double fee” problem
If you form in Delaware but your business actually operates in your home state, your home state usually requires you to register there as an out-of-state LLC, and you pay its yearly fees too. So you pay two states instead of one.
Example, Florida: forming at home costs about $818.75 over five years. Forming in Delaware and registering in Florida costs about $2,928.75, roughly $2,110 more. Across all states, the typical extra cost is about $2,160 over five years (range $2,060 to $3,560).
Every state compared
Click a column heading to sort. Download the full data (CSV).
| State | Filing fee | Ongoing state charge | 5-year cost at home | Rank (1 = cheapest) | Out-of-state registration fee | Extra 5-year cost if you form in Delaware instead | Notes |
|---|---|---|---|---|---|---|---|
| Arizona | $50 | $0 | $50 | 1 | $150 | $2,210 | Publication required outside Maricopa and Pima counties (cost varies) |
| Mississippi | $50 | $0 | $50 | 2 | $250 | $3,560 | Free yearly report for home-state LLCs; $250 for out-of-state LLCs |
| Missouri | $50 | $0 | $50 | 3 | $105 | $2,165 | Online fees; no yearly report |
| New Mexico | $50 | $0 | $50 | 4 | $100 | $2,160 | No yearly report |
| Ohio | $99 | $0 | $99 | 5 | $99 | $2,110 | No yearly report |
| Idaho | $100 | $0 | $100 | 6 | $100 | $2,110 | Free yearly report |
| Iowa | $50 | $30 every 2 years | $110 | 7 | $100 | $2,160 | Report every 2 years (online) |
| South Carolina | $110 | $0 | $110 | 8 | $110 | $2,110 | No yearly report |
| Kentucky | $40 | $15 yearly | $115 | 9 | $90 | $2,160 | |
| Hawaii | $50 | $15 yearly | $125 | 10 | $50 | $2,110 | Plus $1 archives fee at filing |
| Montana | $35 | $20 yearly | $135 | 11 | $70 | $2,145 | Yearly report fee currently waived if filed Jan 1-Apr 15 |
| Utah | $59 | $18 yearly | $149 | 12 | $59 | $2,110 | |
| Nebraska | $100 | $25 every 2 years | $150 | 13 | $100 | $2,110 | Online fees; report every 2 years; publication required (cost varies) |
| Minnesota | $155 | $0 | $155 | 14 | $205 | $2,160 | Free yearly renewal |
| Indiana | $95 | $32 every 2 years | $159 | 15 | $125 | $2,140 | Report every 2 years ($32 online) (online price not published by the state; paper price shown) |
| Pennsylvania | $125 | $7 yearly | $160 | 16 | $250 | $2,235 | |
| Colorado | $50 | $25 yearly | $175 | 17 | $100 | $2,160 | |
| Michigan | $50 | $25 yearly | $175 | 18 | $50 | $2,110 | |
| Alabama | $200 | $0 | $200 | 19 | $150 | $2,060 | Small LLCs owing only the minimum business privilege tax are exempt (tax years 2024+) |
| Oklahoma | $100 | $25 yearly | $225 | 20 | $300 | $2,310 | |
| West Virginia | $100 | $25 yearly | $225 | 21 | $150 | $2,160 | $50 two-year option also available |
| Wisconsin | $130 | $25 yearly | $255 | 22 | $100 | $2,280 | Online fees |
| Kansas | $85 | $90 every 2 years | $265 | 23 | $115 | $2,140 | Information report every 2 years (online) |
| New York | $250 | $9 every 2 years | $268 | 24 | $300 | $2,160 | Includes $50 publication certificate; newspaper publication required (cost varies); report every 2 years |
| Louisiana | $125 | $35 yearly | $300 | 25 | $185 | $2,170 | |
| Texas | $300 | $0 | $300 | 26 | $750 | $2,560 | No franchise tax due under the no-tax-due revenue threshold |
| Georgia | $100 | $50 yearly | $350 | 27 | $225 | $2,235 | Online fees |
| Virginia | $100 | $50 yearly | $350 | 28 | $100 | $2,110 | |
| Vermont | $155 | $45 yearly | $380 | 29 | $155 | $2,735 | |
| North Dakota | $135 | $50 yearly | $385 | 30 | $135 | $2,110 | |
| Rhode Island | $150 | $50 yearly | $400 | 31 | $150 | $2,110 | |
| Wyoming | $100 | $60 yearly | $400 | 32 | $150 | $2,160 | Yearly fee minimum $60 |
| South Dakota | $150 | $55 yearly | $425 | 33 | $750 | $2,710 | |
| Alaska | $250 | $100 every 2 years | $450 | 34 | $350 | $2,410 | Report every 2 years |
| New Jersey | $100 | $75 yearly | $475 | 35 | $100 | $2,110 | |
| Connecticut | $120 | $80 yearly | $520 | 36 | $120 | $2,110 | |
| Illinois | $150 | $75 yearly | $525 | 37 | $150 | $2,110 | |
| Washington | $180 | $70 yearly | $530 | 38 | $180 | $2,110 | |
| Maine | $175 | $85 yearly | $600 | 39 | $250 | $2,510 | |
| New Hampshire | $100 | $100 yearly | $600 | 40 | $100 | $2,110 | |
| Oregon | $100 | $100 yearly | $600 | 41 | $275 | $3,160 | |
| District of Columbia | $99 | $300 every 2 years | $699 | 42 | $220 | $2,231 | Report every 2 years |
| Arkansas | $45 | $150 yearly | $795 | 43 | $270 | $2,335 | Online fees; yearly franchise tax |
| Florida | $125 | $138.75 yearly | $818.75 | 44 | $125 | $2,110 | |
| North Carolina | $125 | $200 yearly | $1,125 | 45 | $250 | $2,235 | |
| Maryland | $100 | $300 yearly | $1,600 | 46 | $100 | $2,110 | Yearly report |
| Nevada | $75 | $350 yearly | $1,825 | 47 | $75 | $2,110 | Yearly list $150 + state business license $200 |
| Delaware | $110 | $400 yearly | $2,110 | 48 | $200 | – | Yearly tax rises from $300 to $400; first $400 payment due June 1, 2027 |
| Tennessee | $300 | $400 yearly | $2,300 | 49 | $300 | $2,110 | $50 per member (min $300) plus yearly report (min $300) and franchise tax minimum $100 |
| Massachusetts | $500 | $500 yearly | $3,000 | 50 | $500 | $2,110 | |
| California | $70 | $800 yearly | $4,130 | 51 | $70 | $2,110 | $800 yearly tax plus $20 statement of information every 2 years |
How we counted
- Filing fee to form the LLC, plus five years of required state charges. Yearly charges are counted five times; every-other-year charges twice.
- State charges only. Registered agent services, business licenses, local fees and income taxes are not included.
- New York, Nebraska and Arizona (outside Maricopa and Pima counties) also require you to publish a notice in a newspaper. The cost varies a lot by county, so it is not included.
- Texas: no franchise tax is due for businesses under the state’s revenue threshold. Tennessee includes its $100 minimum franchise tax.
- Every figure comes from the state’s own website, fee schedule or law, checked October 12, 2026.
So why does everyone talk about Delaware?
Delaware has real strengths, but they mostly matter to companies raising money from investors. It has a dedicated business court where judges, not juries, decide company disputes, and a long record of court decisions that lawyers and investors know well. Many venture investors prefer or require a Delaware company. If you are a local service business, a shop or a solo owner, those benefits rarely apply, and forming in the state where you actually do business is usually simpler and cheaper.
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Quick answers to common LLC questions: What is a series LLC? · LLC vs. corporation
Common questions
How much does a Delaware LLC cost over five years?
About $2,110 in state charges: $110 to form plus a $400 yearly tax (the tax rises from $300 to $400, with the first $400 payment due June 1, 2027). A registered agent in Delaware is extra.
Is Delaware the cheapest state for an LLC?
No. Counting the filing fee plus five years of required state charges, Delaware ranks 48 of 51 (50 states plus DC), making it one of the most expensive.
What if I form in Delaware but run my business in my home state?
You usually have to register in your home state too and pay its yearly fees, on top of Delaware's. For a typical state that adds about $2,160 over five years compared with simply forming at home.