Which state should you actually form in?
Fifteen states, written up honestly — including the annual costs and the catches that formation ads leave out. The right answer depends on your business, not on which state advertises hardest.
Four questions that decide it
Most founders overthink this. In practice the choice turns on one of these four things.
You want your name off the public record
Wyoming and New Mexico do not publish member names on the formation filing.
You want the smallest possible annual bill
New Mexico, Missouri and Ohio have no annual report at all. Colorado charges about $10.
You are raising from U.S. investors
Delaware, as a C-Corporation. Term sheets assume it and converting later costs more.
The fifteen states worth considering
We file in every state. These are the ones founders ask about most, each with a full write-up of costs, obligations and trade-offs.
Wyoming
The default choice for online founders who want privacy and a low annual bill.
New Mexico
The only state with no annual report at all — file once, and that is genuinely it.
Delaware
The state investors expect — worth its premium only if you are raising money.
Texas
A large domestic market and no income tax — but the filing fee is among the highest.
Florida
Fast filings, no personal income tax, and the natural base for Latin America trade.
Colorado
The cheapest state to keep — a $10 annual report and a genuinely modern filing system.
Montana
No sales tax anywhere in the state, and a $20 annual report.
Nevada
Strong privacy and no income tax — but the highest annual cost of any no-tax state.
Missouri
No annual report, no annual fee, and a low cost to form — an underrated combination.
South Dakota
No income tax, strong privacy, and a business-friendly reputation earned in trusts.
Ohio
File once and never file again — no annual report, ever.
Arizona
No annual report, a flat 2.5% income tax, and one of the lowest formation costs.
Georgia
Atlanta logistics, a $50 annual fee, and the busiest airport on earth.
Tennessee
No personal income tax — but franchise and excise tax reach the LLC itself.
Washington
No income tax and a serious tech economy — but the B&O tax catches people out.
All fifteen, on one screen
The two numbers that matter most: what it costs to form, and what the state asks for every year afterwards.
| State | LLC — all in | Every year after | Best known for |
|---|---|---|---|
| Wyoming | $319 | $60 minimum every year | The default choice for online founders who want privacy and a low annual bill. |
| New Mexico | $270 | No annual report at all | The only state with no annual report at all — file once, and that is genuinely it. |
| Delaware | $360 | $300 every year | The state investors expect — worth its premium only if you are raising money. |
| Texas | $540 | No fee, but a Tax Due Report is required every year | A large domestic market and no income tax — but the filing fee is among the highest. |
| Florida | $382 | $138.75 every year | Fast filings, no personal income tax, and the natural base for Latin America trade. |
| Colorado | $269 | $10 every year | The cheapest state to keep — a $10 annual report and a genuinely modern filing system. |
| Montana | $264 | $20 every year | No sales tax anywhere in the state, and a $20 annual report. |
| Nevada | $298 | $350 every year | Strong privacy and no income tax — but the highest annual cost of any no-tax state. |
| Missouri | $277 | No annual report at all | No annual report, no annual fee, and a low cost to form — an underrated combination. |
| South Dakota | $392 | $50 every year | No income tax, strong privacy, and a business-friendly reputation earned in trusts. |
| Ohio | $360 | No annual renewal fee | File once and never file again — no annual report, ever. |
| Arizona | $286 | No annual renewal fee | No annual report, a flat 2.5% income tax, and one of the lowest formation costs. |
| Georgia | $309 | $50 every year | Atlanta logistics, a $50 annual fee, and the busiest airport on earth. |
| Tennessee | $567 | $310 every year | No personal income tax — but franchise and excise tax reach the LLC itself. |
| Washington | $454 | $60 every year | No income tax and a serious tech economy — but the B&O tax catches people out. |
All-in prices include our service fee and the state filing fee. Renewals are the state’s own charges, not marked up. Reviewed August 2026. Not sure which fits? Ask us — we will tell you honestly, including when the cheapest state is not the right one.
Still not sure which state?
Tell us what your business does and where your customers are. We will recommend a state and explain why — with no obligation to file through us.