LLC formation guides, state by state

Compare two states

Pick any two US jurisdictions and jump straight to a side-by-side breakdown of fees, taxes, approval times, and compliance.

Core LLC topics

The questions every LLC filer has to answer, each with a dedicated deep-dive. Use the state guides below for jurisdiction-specific formation details.

Which state should you form in?

Most people asking that question already know the answer: form where you actually live and operate. The "form in Delaware or Wyoming to save on taxes" narrative works for a specific, narrow set of situations. For a home-state operating business, it makes things more expensive, not less, because your home state still requires a foreign LLC registration and collects its own annual fee on top of whatever the other state charges.

The non-resident formation plays are real but niche. They fit online-only businesses with no single physical state, real-estate holding entities, passive investment vehicles, and non-US founders who need a US tax and banking home. If you fall into one of those buckets, Wyoming, New Mexico, and Delaware are the usual short-list. The Delaware vs Wyoming compare walks through the full trade-off.

The five decisions every LLC filer makes

1. Which state to form in

   Home state is right for about 90% of small operators. See the state-by-state table below.

2. Single-member or multi-member

   Determines the default federal tax treatment: disregarded entity for a single owner, partnership for multiple owners.

3. Member-managed or manager-managed

   Member-managed is the default. Manager-managed lets passive investors hold interests without day-to-day control.

4. Tax election

   LLCs default to pass-through. Elect S-corp if self-employment tax is meaningful, or C-corp if raising outside capital.

5. Operating agreement

   Required by statute in California, Maine, Missouri, and New York. Strongly recommended everywhere else.

Traps to watch for

Best states for specific use cases

Every state, side by side

Alphabetical order. Filing fee is the one-time state fee. "Annual tax / report" is what you owe every year (report fee or flat annual tax, whichever applies). "Approval" is typical online turnaround. Franchise tax column shows the minimum where it applies to pass-through LLCs.

Popular state-vs-state comparisons

The questions people search for most. Every pair of states has a compare page; these are the ones with the highest decision-value for most filers.

Before you file, handle these too

• Choose a name. Check the state's business entity search to make sure your desired name is available. Most states require an LLC designator at the end ("LLC" or "Limited Liability Company").
• Line up a registered agent. You need a physical street address in the state. If you live there, you can be your own; otherwise, use a commercial agent for $50 to $125 per year.
• Draft an operating agreement. Required in four states, strongly recommended in the rest. It governs ownership percentages, profit splits, management, buy-sell terms, and dissolution.
• Get an EIN. Free from the IRS. Required for multi-member LLCs, for anyone with employees, and practically required by any bank to open a business account.
• Open a business bank account. Keeps personal and business finances separate. The "piercing the corporate veil" case law treats commingled funds as one of the strongest signals that an LLC's liability shield should be ignored.
• Check state-level licensing. Your LLC registration isn't a business license. Many professions and industries (contractors, food service, rideshare, real estate, healthcare) require separate state or local permits.

Prefer to use a formation service?

If you would rather have a company handle the filing, pick a registered agent, and bundle compliance reminders, we've reviewed every major US formation service side-by-side. The review pages surface what the sales funnels tend to bury: the year-2 registered agent renewal price, what the free tiers actually include, and how "$0 formation" turns into $169 once you add the EIN and operating agreement most filers need.

Open the LLC formation services guide →

Frequently Asked Questions

• How much does it cost to form an LLC in the US in 2026?

  Filing fees range from $35 in Montana to $500 in Massachusetts, with a national average of about $129. Most people also pay $50 to $125 per year for a commercial registered agent. Expect a Year 1 total between $150 and $1,500 depending on the state and whether the state imposes a franchise tax on top of the formation fee.

• Should I form my LLC in Delaware or Wyoming instead of my home state?

  For most home-state operators, no. The moment your Delaware or Wyoming LLC transacts business in your home state, your home state requires you to register as a foreign LLC there, and you pay both states' annual fees. The classic use case for non-resident formation is a business with no physical presence in any state: online-only services, holding entities, or non-US founders. See the Delaware vs Wyoming compare for the full trade-off.

• How long does it take to form an LLC?

  Online filings clear in 1 to 3 business days in most states that offer online filing. States that remain mail-only (like Maine) take 3 to 6 weeks. Expedited tiers are offered in about 30 states and cost $25 to $1,000 depending on how fast you need it. Delaware ranges from 24-hour ($50) to 1-hour ($1,000) service.

• Do I need a lawyer to form an LLC?

  No. LLC formation is a form-filing exercise, not a legal representation matter. The state's website takes your payment directly. A lawyer is worth it when your situation is complex: multiple members with unequal contributions, raising outside capital, operating in regulated industries, or structuring a multi-entity setup. For a single-member LLC running a normal operating business, you can file it yourself.

• Do I need an operating agreement?

  California, Maine, Missouri, and New York require LLCs to adopt a written operating agreement by statute. Every other state treats it as strongly recommended rather than required. Without one, your state's default LLC rules apply, which are often not what you want for anything beyond a single-member operating business.

• What is a registered agent and can I be my own?

  A registered agent is a person or company designated to receive legal and tax documents on behalf of the LLC. The agent must have a physical street address in the state where the LLC is formed (and in every state where the LLC is registered as foreign). You can serve as your own registered agent if you live in the state; most non-resident formations use a commercial agent for $50 to $125 per year.

• Do I need an EIN?

  If your LLC has more than one member, has employees, or elects to be taxed as a corporation, yes. Single-member LLCs with no employees technically don't need one for federal tax (they use the owner's SSN), but most banks require an EIN to open a business bank account. EIN applications are free through the IRS; never pay a third-party service to get one.

• What states have no annual report for LLCs?

  Alabama, Arizona, Missouri, New Mexico, Ohio, and South Carolina do not require LLCs to file an annual report. Delaware has no annual report either, but charges a flat $300 annual LLC tax that functions as the same compliance obligation.

All state-vs-state comparisons

Every US jurisdiction paired with every other. Filter by state name to narrow the list; each section shows that state compared to all 50 others.