Most expensive states for an LLC
Eight states stand clearly above the rest once filing fees, recurring charges, publication, and franchise-style taxes are combined. Here is what drives each one — and which costs are avoidable (most aren’t, if you actually operate there).
| State | Filing fee | First-year total | Ongoing / yr | Recurring due pattern |
|---|---|---|---|---|
| Massachusetts | $500 | $1,000 | $500 | Annual report due by the anniversary date |
| California | $70 | $890 | $810 | Statement of Information: within 90 days of filing, then every 2 years by the end of the anniversary month |
| Tennessee | $300 | $700 | $400 | Annual report due the 1st day of the 4th month after fiscal year end (April 1 for calendar-year filers) |
| Maryland | $100 | $400 | $300 | Annual report / Personal Property Return due April 15 |
| New York | $200 | $200 | $4.50 | Biennial statement due in the original filing month, every 2 years |
| North Carolina | $125 | $325 | $200 | Annual report due April 15 |
| Rhode Island | $150 | $600 | $450 | Annual report due May 1 |
| Delaware | $110 | $410 | $300 | No annual report; the LLC tax is due June 1 |
What makes each state expensive
Massachusetts ($500 + $500/yr). The highest in the nation on both measures. The annual report is $500 by paper and $520 online (the online route adds a processing fee). There is no cheaper tier and no way around it for a Massachusetts LLC.
California ($70 + $800/yr tax + $20 biennial). The filing fee looks cheap; the $800 annual franchise tax is the cost, owed every year the LLC exists — even with no income — until the LLC is formally dissolved. Add the gross-receipts fee once California income passes $250,000 (starting at $900) and California is the most expensive state to keep an LLC.
Tennessee ($300 min + $300 min/yr + taxes). Both formation and the annual report are $50 per member with a $300 minimum ($3,000 maximum), and Tennessee layers franchise tax (0.25% of net worth, $100 minimum) and a 6.5% excise tax on earnings on top.
Maryland ($100 + $300/yr). The $300 annual filing combines the annual report with a Personal Property Return — the highest pure report charge among large states.
New York ($200 + publication). The state’s own recurring fee is a trivial $9 every two years. The expense is the mandatory newspaper publication (two papers, six weeks, within 120 days) plus the $50 Certificate of Publication — newspaper-set pricing that runs from a few hundred dollars upstate to $1,500+ in the city, before any IT-204-LL income-based fee.
North Carolina ($125 + $200/yr) and Rhode Island ($150 + $50/yr + $400 annual charge) round out the list: North Carolina through a $200 annual report, Rhode Island through a $400 minimum annual charge that applies even with zero income. Delaware qualifies on its flat annual tax — $300 for the 2025 tax year, $400 for 2026 and later — which buys no annual report at all, just the tax.
Cheapest states to form an LLC
For contrast: Montana forms an LLC for $35, and five states charge $0 a year to keep one. The full low-cost ranking: See the cheapest states →
Can you avoid an expensive state by forming elsewhere?
Usually not, if the expensive state is where you live and work. States require an LLC that is “transacting business” in their territory to register as a foreign LLC and pay that state’s fees in addition to the formation state’s — California, for example, applies its $800 tax to foreign LLCs registered there too. The expensive-state premium is avoidable only when the business genuinely operates somewhere cheaper. Where you do have a real choice, compare with the calculator over a five-year horizon, not just day one.
Educational information only. LLC Cost Guide is not a law firm, accounting firm, or filing service, and nothing on this page is legal or tax advice. Fees and deadlines change; confirm the current figures with your Secretary of State (or Division of Corporations) before filing, and consult a licensed attorney or CPA for advice about your specific situation.