Nov 16, 2022

How Much Does it Cost to Incorporate Your Business?

Bag of MoneySo you’ve decided to register your business as a Limited Liability Company or C Corporation. Kudos to you for thinking about the benefits of liability protection and possible tax advantages that come with formally establishing your company as a separate legal entity.

Like many small business owners, you may now be wondering how much it will cost to incorporate your business and in what state should register your company. Some entrepreneurs opt to register their Limited Liability Company (LLC) or C Corporation within the state they live in. Others look around for a state with the most cost-effective fees. For example, Delaware has become a popular place for corporations because companies formed in the state pay minimal state tax if they do not actually conduct business there.

Let’s take the mystery and confusion out of the process by providing a comprehensive list of incorporation costs by state.

Business Formation Costs Will Vary by State

Formation and annual report filing fees sometimes sway the decision of which state a business will register. Those fees can vary a good deal from one state to the next. I advise you not to make your choice based solely on the lowest cost. While those initial costs and ongoing annual report filing fees may look attractive, that doesn’t mean you’ll save a whole heap of money by registering your business in a different state.

Realize that when a business incorporates in one state but physically maintains an office or conducts business in another state, the business may need to register (also called foreign qualification) in that other state, too. And yes, that means the business must pay those state filing fees, annual report fees (if applicable), and taxes.

In most cases, small businesses benefit most by incorporating or forming an LLC in the state where they’re located. But it’s helpful to have some idea of the prices in other states, as well. After all, if your business grows and expands, you could likely be doing business in more than only your home state!

State-by-State Cost To Incorporate

For your convenience, I’ve compiled a list of the current formation and annual maintenance fees for each of the 50 United States. These rates reflect what is presently true in November of 2022. Keep in mind that they are subject to change by the states.

2022 LLC Formation Filing and Annual Report Fees

StateFormation FilingInitial ReportPublicationAnnual Report
Alabama$236
Alaska$250$100
Arizona$85$299
Arkansas$50$155
California*$75$25$25
Colorado$50$10
Connecticut$120$80
Delaware$195$300
District of Columbia$99$300
Florida$155$138.75
Georgia$100$50
Hawaii$51$15
Idaho$105
Illinois$160$80
Indiana$100$32
Iowa$50$30
Kansas$166$50
Kentucky$55$15
Louisiana$105$35
Maine$175$85
Maryland$197$300
Massachusetts$520$520
Michigan$25
Minnesota$160
Mississippi$55
Missouri$52
Montana$70$20
Nebraska$105$199$13
Nevada$425$350
New Hampshire$104$102
New Jersey$128.5$78
New Mexico$52
New York$210$425 Minimum$9
North Carolina$128$203
North Dakota$135$50
Ohio$99
Oklahoma$104$25
Oregon$100$100
Pennsylvania$125$70
Rhode Island$156$50
South Carolina$146
South Dakota$150$50
Tennessee$325$310
Texas$310Based on Gross Annual Revenue
Utah$56$18
Vermont$125$35
Virginia$104$50
Washington$200$60
West Virginia$56$26
Wisconsin$130$25
Wyoming$103$62
*The California LLC formation filing fee is waived through June of 2023.

2022 LLC Formation Filing and Annual Report Fees

StateFormation FilingInitial ReportPublicationAnnual ReportAttorney Signature
Alabama$236
Alaska$250$100
Arizona$60$299$45
Arkansas$50$150 Minimum
California*$105$30$30
Colorado$50$10
Connecticut$455$150
Delaware$180$225 Minimum
District of Columbia$195$300
Florida$78.75$150
Georgia$100$50$199$50
Hawaii$51$15
Idaho$101
Illinois$155$80 Minimum
Indiana$100$32
Iowa$50$60
Kansas$90$50
Kentucky$55$15
Louisiana$105$35
Maine$145$85
Maryland$218$300
Massachusetts$295$110
Michigan$60$25
Minnesota$160
Mississippi$55$30
Missouri$60$45$22
Montana$35$20
Nebraska$110$199$57
Nevada$725$650
New Hampshire$104$102
New Jersey$128.5$78
New Mexico$102$27$27
New York$135$9
North Carolina$128$28
North Dakota$100$25
Ohio$99 Minimum
Oklahoma$78
Oregon$100$100
Pennsylvania$125399$70
Rhode Island$240$50
South Carolina$175$175
South Dakota$150$50
Tennessee$125$26
Texas$310Based on Gross Annual Revenue
Utah$56$18
Vermont$125$45
Virginia$79 Minimum$100 Minimum
Washington$200$60
West Virginia$125$26
Wisconsin$100$25
Wyoming$103$62
*The California LLC formation filing fee is waived through June of 2023.

Are You Ready to Incorporate Your Business?

Whether you form an LLC or incorporate your business in your home state or in a different state, remember CorpNet can save you time and alleviate hassle by handling the registration and ongoing compliance filings for you. Get the peace of mind that your paperwork is done accurately and on time by contacting us today to get started!

<a href="https://www.corpnet.com/blog/author/nellieakalp/" target="_self">Nellie Akalp</a>

Nellie Akalp

Nellie Akalp is an entrepreneur, small business expert, speaker, and mother of four amazing kids. As CEO of CorpNet.com, she has helped more than half a million entrepreneurs launch their businesses. Akalp is nationally recognized as one of the most prominent experts on small business legal matters, contributing frequently to outlets like Entrepreneur, Forbes, Huffington Post, Mashable, and Fox Small Business. A passionate entrepreneur herself, Akalp is committed to helping others take the reigns and dive into small business ownership. Through her public speaking, media appearances, and frequent blogging, she has developed a strong following within the small business community and has been honored as a Small Business Influencer Champion three years in a row.
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