Start Your LLC the Easy Way

What is an LLC?

An LLC, or Limited Liability Company, is a flexible business structure designed to protect its owners' personal assets. It blends the benefits of both corporations and partnerships, while avoiding many of their downsides.

LLCs can be used to operate a business or to hold and manage assets like real estate, vehicles, or even boats and aircraft.

Both U.S. residents and non-residents are allowed to form an LLC in the United States — as explained in our article on the best states to form one.

What’s the Best State to Form an LLC? (For Residents and Non-Residents)

Forming an LLC is one of the best ways to protect your personal assets and legitimize your business. But one of the most common questions people ask is:

Which state is best for forming an LLC?

The answer depends on whether you’re a U.S. resident or a non-resident  and what kind of business you're running.

If You’re a U.S. Resident: Choose Your Home State

For most U.S. residents, your home state is the best place to form your LLC. It’s usually the easiest and most cost-effective option.

Even though states like Delaware, Wyoming, and Nevada are popular online, forming an LLC in another state when you're doing business in your own can lead to:

• Extra paperwork

• Dual state fees (formation + foreign registration)

• More taxes and compliance headaches
  
  

Bottom line: Unless you live in Delaware, Nevada, or Wyoming  or have a specific legal reason stick with your home state.

If You’re a Non-U.S. Resident: Wyoming or Delaware Are Great Options

If you're not a U.S. resident and don’t live in any U.S. state, you’ll need to choose one. The most common options are:

 Wyoming

• No state income tax

• Low annual fees

• High privacy protections

• Strong asset protection laws

 Delaware

• Business-friendly courts (Court of Chancery)

• Popular for tech startups and corporations

• Easy to manage for international owners

For many non-residents, Wyoming is the most cost-effective and private option for starting an LLC.

How much does it cost to form an LLC?

LLC filing costs vary by state. On average, it costs about $132 to form an LLC and $91 per year to maintain it through an annual report. Montana has the lowest filing fee at $35, while Massachusetts charges the highest at $500.

Note: State fees are subject to change. Always check the official state website for the most up-to-date information before filing.

Expensive States to Form an LLC

Some states charge more than average to form an LLC — for example, Alaska ($250), Massachusetts ($500), Tennessee ($300), and Texas ($300).

But don’t let high fees push you to form your LLC in another state. Doing that often ends up costing even more.

If you register your LLC in a different state, you’ll still need to file as a Foreign LLC in your home state meaning you'll pay fees in both places and deal with extra paperwork.

LLC Annual Reports

In most states, LLCs must file an Annual Report and pay a yearly fee. On average, this costs around $91. In many states, the annual fee typically falls between $50 and $100. 

States with no LLC Annual Reports

Some states don’t charge an LLC Annual Fee, though a report might still be required. These include Arizona, Idaho, Minnesota, Mississippi, Missouri, New Mexico, Ohio, South Carolina, and Texas. 

States with Expensive Annual LLC Fees

Several states have above-average LLC Annual Report fees, including California ($800), Delaware ($300), Maryland ($300), Massachusetts ($500), Nevada ($500), Tennessee ($300), and Washington D.C. ($300). 

LLC Registered Agent Fees

If you or someone you know (like a friend or family member) acts as your LLC’s Registered Agent, there’s no additional cost. But if you prefer not to take on that role—or don’t want to involve others—you can hire a Commercial Registered Agent. These services typically charge between $100 and $300 per year.

We recommend Registered Agents Inc., which charges $199 per year and provides reliable, professional service across all 50 states.

What is an LLC Registered Agent?

A Registered Agent is a person or company appointed to receive legal documents and official government notices on behalf of your LLC. Every LLC is required to have one. The agent must have a physical address in the state where the LLC is formed and be available during normal business hours.