Forming an LLC Costs $50 to $800+, Depending on Your State
Most entrepreneurs pay $200–$400 in year one. State filing fees range from $50 (New Mexico, Colorado) to $800+ (California franchise tax). Formation service fees range from $0 to $500+. Tailor Brands offers one of the most complete packages — LLC filing, registered agent, branding tools, and business essentials — all starting at $0 + your state fee.
Breaking Down the Real Cost of Forming an LLC in 2026
If you’ve been searching for answers on what it costs to start an LLC, you’ve probably noticed the numbers are all over the map. Some sites scream “$0 + state fees!” while others quote $1,000 or more. Here’s the honest answer: both can be true, and knowing why is the difference between smart planning and an expensive surprise.
The total cost of forming an LLC in 2026 comes down to three core components — and only one of them is fixed. The other two are entirely in your control. For those looking to manage costs while expanding, learning how to set up an online store efficiently is a common next step after legal formation.
💰 State Filing Fees
Paid directly to your state government. Non-negotiable. California charges a $70 filing fee but slaps you with an $800/year franchise tax. New Mexico? Just $50, and $0 annually.
🏢 Formation Service Fees
What you pay a company to handle your filing. Advertised prices start at “$0” but real year-one costs vary wildly based on what’s included — registered agent, operating agreement, EIN, and more.
📋 Ongoing Compliance
Every LLC needs a registered agent (legally required), annual report filings, and compliance tracking. For those abroad, it is critical to understand the late filing penalty for foreign-owned LLCs to avoid unnecessary expenses.
Why We Recommend Tailor Brands for Your LLC
Most formation services give you a filing receipt and call it a day. Tailor Brands is built differently — it’s the only platform that combines LLC formation, registered agent service, branding, and business banking. This is an ideal solution for profitable home businesses that need a professional setup from day one.
State Filing Fees: What Every State Charges in 2026
Your single biggest cost variable is where you form your LLC. If you are a location-independent entrepreneur, you should also consider the tax implications for digital nomads before choosing your state.
| State | Filing Fee | Processing Time | Annual Fee | Total Year 1 |
|---|---|---|---|---|
| New Mexico | $50 | 1–15 days | $0 | $50 |
| Wyoming | $100 | 1–5 days | $50 | $150 |
| Delaware | $90 | 1–3 days | $300 | $390 |
| California | $70 | 7–14 days | $800 tax | $870 |
Once formed, you must stay compliant with federal regulations. For many domestic entities, understanding the FinCEN BOI exemptions is a key part of your annual legal maintenance. If you ever need to close your doors, ensure you follow the proper steps to dissolve an inactive LLC from abroad.
