There is no cheapest state independent of your operating state. A formation fee is only one line; qualification where you work, agents, reports and tax rules can change the result.
Use a two-year comparison, not a rank
| Scenario | State filing fees at start | Recurring examples |
|---|---|---|
| Operate in Texas: TX LLC vs WY LLC + TX qualification if required | $300 TX; or $100 WY + $750 TX foreign registration if TX qualification applies | WY annual tax/report; TX franchise reporting as applicable |
| Operate in Florida: FL LLC vs TX LLC + FL qualification if required | $125 FL; or $300 TX + $125 FL foreign filing if FL qualification applies | FL annual report; TX reporting as applicable |
| Operate in California: CA LLC vs WY LLC + CA qualification if required | $70 CA; or $100 WY + $70 CA foreign filing if CA qualification applies | CA annual LLC tax generally $800 while doing business, plus WY annual report for a WY LLC |
TX fee · TX foreign fee · FL fees · CA domestic fee · CA foreign fee · WY fee
Three facts to settle before adding the columns
- Where is work done and where are people, offices or property?
- Does that state require this LLC to register there, and what taxes or local permits apply?
- What are mandatory annual charges in each state, versus optional agent, service and professional costs?
The SBA says business activity in multiple states may require qualification, with duties in more than one state. No example is a personal legal conclusion or all-in quote. SBA state-registration guidance
See detailed TX/WY, FL/TX, WY/CA, and DE/NV scenarios.
Frequently asked questions
Is Wyoming always the cheapest state to form an LLC?
No. Its $100 formation fee does not include an annual report or qualification, agents or taxes where you operate.
Can I pick a low-fee state and skip registration where I work?
No general exemption follows from forming elsewhere. If the company conducts business activities in another state, foreign qualification may apply there.
What should I compare in year one and year two?
List formation, any required foreign qualification, agents, publication, local permits, annual reports or taxes, and optional services separately.
Are the example totals an all-in quote?
No. They are specified state filing amounts under conditional scenarios, not a legal conclusion or complete budget.
This is general information, not legal, tax or banking advice. Rules, deadlines and provider policies change; check the linked source and facts of your case before acting.