What drives the difference between two states
Every LLC has two kinds of cost: a one-time filing fee to form it, and recurring costs to keep it in good standing. The state you pick can swing both.
- Filing fee (once). Ranges from $35 (Montana) to $500 (Massachusetts). This dominates the year-1 number but barely matters over five years.
- Annual vs biennial report. An annual report is billed five times in five years; a biennial one only twice — so two states with equal fees can diverge sharply over time.
- Flat franchise / privilege tax. A handful of states charge a flat tax every year
regardless of income — California's
$800and Delaware's$300are the big ones — which quietly makes them the most expensive states to keep an LLC in. - Registered agent. $0 if you act as your own, or a yearly fee for a commercial service. This comparison applies the same choice to both states so the gap reflects the states.
- Publication. Only New York, Arizona, and Nebraska require it, and only once.
That's why the cheapest state to form in isn't always the cheapest to own. The side-by-side above uses the same 2026 fee data as our national LLC Cost by State tool, so the difference is apples-to-apples.
How this is calculated
- Year-1 total = one-time filing fee + your first report or franchise-tax obligation (annual reports assumed due in year 1; biennial ones first come due in year 2, so they are counted in the 5-year total but not year 1) + registered-agent cost + any one-time publication cost.
- 5-year total = filing fee once + the report fee times how many times it recurs (annual → 5×, biennial → 2×, none → 0) + any flat franchise/privilege tax × 5 years + registered agent × 5 years if commercial + the one-time publication cost.
- Excluded on purpose — revenue-dependent taxes (California's graduated LLC fee, Texas's margin tax, New York's income-tiered IT-204-LL, and gross-receipts taxes in DC/NH/OH/OR/WA) are not added, because they depend on your income, not the state alone.
Data as of July 2026. Filing, report, and franchise fees are compiled from each state's Secretary of State (or equivalent) fee schedule, the same dataset the national LLC Cost by State calculator uses. Fees change — confirm on each state's own site before filing. Not legal or tax advice.
Two-state LLC cost FAQ
Which state is cheaper to form an LLC in?
It depends on the two states and the horizon. A low filing fee can win year one but lose over five years if the state charges a high annual report or a flat franchise tax. California is $70 to file but adds an $800/yr franchise tax, so over five years it costs far more than Wyoming ($100 to file, $60 annual report, no franchise tax). Compare both totals above.
What makes one state cost more over five years?
Recurring costs, not the one-time filing fee: an annual report recurs 5×, a biennial one 2×, and flat franchise taxes (California's $800, Delaware's $300) are billed every year. Two states with the same filing fee can differ by thousands over five years.
Do I need a registered agent in both states?
Yes — every state requires a registered agent with a physical in-state address. You can be your own for $0 if you qualify, or pay a commercial service (about $100–$300/yr). This tool applies the same choice to both states so the gap reflects the states, not the agent.
Does this include the publication requirement?
Yes, where it applies. New York, Arizona, and Nebraska require publishing a notice of formation. Selecting one of those shows a publication option and adds its estimated cost. Every other state's publication line is $0.
This calculator is an educational estimate, not legal or tax advice, and not a substitute for each state's official fee schedule. Fees, thresholds, and requirements change; verify current figures with each Secretary of State (or equivalent agency) before filing. No liability is accepted for decisions made from these results.