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Best State to Form an LLC
If you live and do business in one US state, form your LLC there. Forming elsewhere usually means also registering as a foreign LLC at home, so you pay twice.
When an out-of-state LLC makes sense
- Non-US residents with no US home state: Wyoming (low fees, strong privacy) and New Mexico (no annual report) are popular.
- VC-backed startups: usually a Delaware C corp, not an LLC.
Cheapest states by first-year state fees
| State | Filing | Recurring |
|---|---|---|
| Arizona | $50 | $0/yr |
| Mississippi | $50 | $0/yr |
| Missouri | $50 | $0/yr |
| New Mexico | $50 | $0/yr |
| Kentucky | $40 | $15/yr |
| Montana | $35 | $20/yr |
| Hawaii | $51 | $12.50/yr |
| Colorado | $50 | $25/yr |
| Michigan | $50 | $25/yr |
| Utah | $59 | $18/yr |
Ranked by filing fee + recurring fee. Unmarked states are pending re-verification.
FAQ
What is the cheapest state to form an LLC?
By state fees, states with low filing fees and no annual report, such as New Mexico and Arizona, are among the cheapest. But your home state is usually cheapest overall.
Last updated 2026-10-11. Not legal or tax advice.