HOW TO FORM AN LLC IN 50 STATES OF THE US

By Bazal Razzaq

Chief Editor

Updated: July 15, 2023, 12:30pm

Editorial Note: We earn a commission if you use the services recommended on this page. Commissions do not affect our opinions or recommendations.

Looking to form an LLC but confused about where to set it up? We understand. Or maybe you’re specifically looking for more information on how you can form an LLC in a particular state. Whatever your requirement may be, we’ve got you sorted! 

Whether you’re a budding entrepreneur, a small business owner, or a visionary with a groundbreaking plan, starting an LLC can provide you with the foundation for success and protect your private assets.

In this guide, we’ll break down the process of forming an LLC state by State, equipping you with the essential information and steps to establish your company within each jurisdiction. From the busy and happening streets of New York to the sun-soaked beaches of California, we’ll guide you through the intricacies of each State’s filing procedures, fees, documentation, and any additional considerations you need to remember. 

Which Is The Best LLC Service For Any State?

Whichever State you choose, it’s important to remember that a fantastic LLC formation service is often the secret ingredient in setting up your dream LLC. They take the weight off your shoulders through their professional support and help minimize the risk of human errors. 

As promised, we’re always on your side in this journey of LLC formation! Our top-notch recommendations will be your guiding light and help you form an LLC in all 50 states of America:

For the past 25 years, Northwest Registered Agent has offered a top-notch professional solution for individuals and businesses setting up an LLC. They have efficient and helpful customer support that provides great value. With their particular emphasis on privacy, customized support, and ongoing compliance assistance, they’re the top-tier choice for anyone seeking a reliable service to open and run their LLC.

Founded in 2004, InFile has helped over 1,000,000 business owners and set up over 80,000 companies. The quality and amount of services they offer mark them as one of the best LLC formation services ever. Also, they have amazing customer ratings as well. If you want the most comprehensive option, choose IncFile, and you won’t be disappointed.

Business Rocket is a competent and dependable choice regarding LLC formations. They’ve been in the industry for over 20 years and specialize in business formation for all business entities, including LLCs. They offer many services, starting with a reasonably priced basic package. They may have a few ups and downs, but mostly, they leave nothing to be disappointed.

Harbor compliance

Harbor Compliance is the perfect choice for an extensive and reliable compliance solution. They’ve got compliance in their blood, and their LLC formation services are easy to use and competitively priced, given that you won’t have to purchase many services. Overall, a steal! Also, their ongoing compliance offers many options for companies seeking compliance assistance.

MyCompanyWorks

MyCompanyWorks is a good option for people who want their LLC formation process quick. You could save some money if you select another more affordable service. Still, if you care about efficiency and consumer service, they are the fastest and provide amazing customer support. Also, they have one of the best refund policies where you can request a refund within 90 days- no questions asked.

How To Form An LLC

All 50 States Guide

ALABAMA

  • State Department: https://www.sos.alabama.gov/
  • Filing Fees: $200
  • Annual Fees: $100
  • Individual Income Tax Rate: 5%
  • Average Local Sales Tax Rate: 5.25%
  • Property Tax Rate: 1.04%
  • State Ranking For Business-Friendly Environment: #42

How To Form An LLC in Alabama

Here are some basic steps to form an LLC in Alabama:

  1. Pick a name for your Alabama LLC(business name reservation fee is $25)
  2. Prepare a business plan for your LLC.
  3. Appoint a statutory agent to receive your LLC’s necessary legal, official, and financial documents and notices.
  4. File the Articles of Organization with the Secretary of State. The filing fee is around $200-250.
  5. Create an operating agreement.
  6. Apply for an EIN(Employer Identification Number) with the Internal Revenue Service.
  7. Maintain accurate records of documents like certificates of formation, recent financial and legal statements, and the names and addresses of all owners/members.
  8. You need to submit a Business Privilege Tax Return when forming an LLC in Alabama within 3.5 months after your business’s tax year begins.

Head over here for a more detailed overview of setting up an LLC in Alabama.

ALASKA

  • State Department: https://alaska.gov/
  • Filing Fees: $250
  • Annual Fees: $100
  • Individual Income Tax Rate: None
  • Average Local Sales Tax Rate: 1.76%
  • Property Tax Rate For Homes: 1.04%
  • State Ranking For Business-Friendly Environment: #5

How To Form An LLC in Alaska

Here are some basic steps to form an LLC in Alaska:

  1. Choose a name for your Alaska LLC(business name reservation fee is $25)
  2. Come up with a business plan.
  3. Obtain your NAICS (North American Industry Classification System) Code. You can find it by visiting the Census Bureau website. 
  4. Appoint a Registered Agent to accept and receive important legal and official documents and notices on behalf of your LLC.
  5. File Articles of Organization with the state Secretary of State(filing fee is around $250)
  6. Draft an operating agreement.
  7. Get a business license for your LLC.
  8. Get an EIN from the IRS
  9. Once you’ve created your Alaska LLC, you need to file a Statement of Information(filing fee is around $100)

Head over here for a more detailed overview of setting up an LLC in Alaska.  

ARIZONA

  • State Department: https://azsos.gov/
  • Filing Fees: $150
  • Annual Fees: None
  • Individual Income Tax Rate: 5%
  • Average Local Sales Tax Rate: 5.25%
  • Property Tax Rate For Homes: 40%
  • State Ranking For Business-Friendly Environment: #17

How To Form An LLC in Arizona

Here are some basic steps to open an Arizona LLC:

  1. Pick a name for Arizona LLC(business name reservation fee is $45)
  2. Draft a business plan.
  3. Hire a registered agent to accept and receive your LLC’s necessary legal, official, and financial documents and notices.
  4. Prepare and file Articles of Organization with the Secretary of State. The filing fee is $50.
  5. Create an operating agreement.
  6. Apply for an (EIN)Employer Identification Number with the IRS. 
  7. Fulfill the publication requirement. Yes, the State of Arizona requires publication in the local newspaper. You need to obtain a certificate from the Arizona Corporation Commission. It contains instructions on how to carry out your publication the right way.
  8. Maintain an accurate of all your important legal and official documents.

Head over here for a more detailed overview of setting up an LLC in Arizona. 

ARKANSAS

  • State Department: https://www.sos.arkansas.gov/
  • Filing Fees: $50
  • Annual Fees: $150
  • Individual Income Tax Rate: 4.9%
  • Average Local Sales Tax Rate: 2.96%
  • Property Tax Rate: 0.64%
  • State Ranking For Business-Friendly Environment: 30

How To Form An LLC in Arkansas

Here are some basic steps to open an Arkansas LLC:

  1. Select a name for your Arkansas LLC(business name reservation fee is $25)
  2. Create a business plan for your company.
  3. Hire a registered agent.
  4. Prepare and file Articles of Organization by filling out the Form LL-01 (filing fee is $45)
  5. Draft an Operating Agreement
  6. Apply for an EIN(Employer Identification Number) from the IRS.
  7. Submit the Statement of Information(annually).

Head over here for a more detailed overview of setting up an LLC in Arkansas. 

CALIFORNIA

  • State Department: https://www.sos.ca.gov/
  • Filing Fees: $100
  • Annual Fees: $800
  • Individual Income Tax Rate: 13.3%
  • Average Local Sales Tax Rate: 1.57%
  • Property Tax Rate: 0.75%
  • State Ranking For Business-Friendly Environment: #48

How To Form An LLC in California

Here are some basic steps to open a California LLC:

  1. Name your California LLC(business name reservation fee is $10)
  2. Draft a business plan.
  3. Choose a registered agent.
  4. Prepare and File Articles of Organization with the California Secretary of State(filing fee is $70)
  5. Apply for a Federal Employer Identification Number (EIN) with the IRS.
  6. Register and pay for State Taxes.
  7. Set an operating agreement.
  8. File your Statement of Information with the reporting authorities.
  9. Comply with Ongoing Filing Requirements. These include filing an Annual Statement of Information, paying franchise taxes, and holding annual shareholder meetings.

Head over here for a more detailed overview of setting up an LLC in California. 

COLORADO

  1. State Department: https://www.sos.state.co.us/
  2. Filing Fees: $50
  3. Annual Fees: $10
  4. Individual Income Tax Rate: 4.40%
  5. Combined and Average Local Sales Tax Rate: 4.87%
  6. Property Tax Rate: 0.55%
  7. State Ranking For Business-Friendly Environment: #21

How To Form An LLC in Colorado

Here are some basic steps to open a Colorado LLC:

  1. Choose a name for your Colorado LLC(business name reservation fee is $25)
  2. Prepare a business plan.
  3. Appoint a Registered Agent for your LLC.
  4. Prepare and file your Articles of Incorporation with the Colorado Secretary of State (filing fee is around $50)
  5. Draft an Operating Agreement.
  6. Get an EIN(Employer Identification Number) with the IRS.
  7. File your Periodic Report(statement of information). The filing fee is $10.

Head over here for a more detailed overview of setting up an LLC in Colorado. 

CONNECTICUT

  1. State Department: https://portal.ct.gov/sots
  2. Filing Fees: $120
  3. Annual Fees: $80
  4. Individual Income Tax Rate: 6.99%
  5. Combined and Average Local Sales Tax Rate: 6.35%
  6. Property Tax Rate: 1.79%
  7. State Ranking For Business-Friendly Environment: #3

How To Form An LLC in Connecticut

Here are some basic steps to open a Connecticut LLC:

  1. Select a name for your Connecticut LLC(business name reservation fee is $60)
  2. Put together a business plan.
  3. Appoint a registered agent.
  4. Prepare and file your Articles of Incorporation with the Connecticut Secretary of State(filing fee is $120)
  5. Apply for an EIN with the IRS.
  6. Create an Operating Agreement.
  7. Submit the Statement of Information. The filing fee is $80.

Head over here for a more detailed overview of setting up an LLC in Connecticut. 

DELAWARE

  1. State Department: https://delaware.gov/
  2. Filing Fees: $90
  3. Annual Fees: $300
  4. Individual Income Tax Rate: 6.60%
  5. Average Local Sales Tax Rate: None
  6. Property Tax Rate: 0.61%
  7. State Ranking For Business-Friendly Environment: #1

How To Form An LLC in Delaware

Here are some basic steps to open a Delaware LLC:

  1. Pick a name for your Delaware LLC(business name reservation fee is $75)
  2. Draft a business plan for your LLC.
  3. Hire a registered agent.
  4. Prepare and file a Certificate of Incorporation with the Delaware Secretary of State(filing fee is 90)
  5. Get an EIN(Federal Employer Identification Number) from the IRS.
  6. Prepare an Operating Agreement.
  7. You won’t have to pay a franchise tax or submit an annual report in Delaware. Instead, you’ll have to pay a fixed amount of $300 annually by June 1.

Head over here for a more detailed overview of setting up an LLC in Delaware. 

DISTRICT OF COLUMBIA DC

  1. State Department: https://os.dc.gov/
  2. Filing Fees: $99
  3. Annual Fees: $300
  4. Individual Income Tax Rate: 10.75%
  5. Combined and Average Local Sales Tax Rate: 6%
  6. Property Tax Rate: 0.62%
  7. State Ranking For Business-Friendly Environment: #26

How To Form An LLC in the District of Columbia DC

Here are some basic steps to open a District of Columbia LLC:

  1. Pick a name for your District of Columbia LLC(trade name reservation fee is $55)
  2. Draft a business plan for your LLC.
  3. Choose your registered agent.
  4. Prepare and file your Articles of Incorporation with the Secretary of State(filing fee is $99)
  5. Set an Operating Agreement.
  6. Get a business license to legally run your LLC in DC. In most cases, you’ll need a BBL(basic business license). You can follow these steps to get one for your company. 
  7. When you start a new LLC in Washington, you need to file an Initial Report with the Secretary of State within 120 days of forming your LLC. You can easily complete this report online. The filing fee is $10.
  8. Obtain the nine-digit EIN from the IRS.
  9. File annual reports with the Department of Consumer and Regulatory Affairs
  10. Register your LLC with the State’s tax agency.

Head here for a more detailed overview of opening an LLC in the District of Columbia.

FLORIDA

  1. State Department: https://dos.myflorida.com/
  2. Filing Fees: $125
  3. Annual Fees: $138.75
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 1.1%
  6. Property Tax Rate: 0.91%
  7. State Ranking For Business-Friendly Environment: #46

How To Form An LLC in Florida

Here are some basic steps to open a Florida LLC:

  1. Pick a name for your Florida LLC(the business name reservation fee is $25)
  2. Draft a business plan.
  3. Appoint a registered agent for your LLC.
  4. Prepare and file your Certificate of Formation report with the Secretary of State. The filing fee is $125.
  5. Create an Operating Agreement. 
  6. Check if you need a Florida business license with the state website. You can also visit US Small Business Association and check if your business industry is 
  7. Apply for an EIN with the Internal Revenue System.
  8. Open a business bank account since it’s necessary for all LLCs in Florida to have a separate professional bank account.
  9. If your LLC has employees, apply for worker’s compensation insurance and pay unemployment taxes to support employees who lose their jobs. Also, when hiring new employees, submit their details here within 20 days. 
  10. Lastly, you must submit your Periodic Report, i.e., Statement of Information annually. The filing fee is $138 and needs to be submitted by May 1. 

Head over here for a more detailed overview of setting up an LLC in Florida.

GEORGIA

  1. State Department: https://sos.ga.gov/
  2. Filing Fees: $100
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 5.75%
  5. Average Local Sales Tax Rate: 3.35%
  6. Property Tax Rate: 0.92%
  7. State Ranking For Business-Friendly Environment: #41

How To Form An LLC in Georgia

Here are some basic steps to open a Georgia LLC:

  1. Choose a name for your LLC(the business name reservation fee is $25). You can also quickly search to check if your chosen name is already in use. 
  2. Create a business plan for your LLC.
  3. Appoint a registered agent to receive important official and legal documents on your LLC’s behalf. 
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $100.
  5. Draft an Operating Agreement.
  6. Set up a professional bank account for your LLC.
  7. Get an EIN (Federal Employer Identification Number) from the IRS.
  8. Submit the Statement of Information annually. The filing fee is $50.

Head over here for a more detailed overview of setting up an LLC in Georgia.

HAWAII

  1. State Department: https://portal.ehawaii.gov/
  2. Filing Fees: $50
  3. Annual Fees: $15
  4. Individual Income Tax Rate: 11% 
  5. Average Local Sales Tax Rate: 0.44%
  6. Property Tax Rate: 1.31% 
  7. State Ranking For Business-Friendly Environment:

How To Form An LLC in Hawaii

Here are some basic steps to open a Hawaii LLC:

  1. Select a name for your Hawaii LLC(the business name reservation fee is $10).
  2. Draft a business plan.
  3. Hire a registered agent to receive important official and legal documents on your LLC’s behalf. 
  4. Prepare and file Articles of Incorporation. The filing fee is $50.
  5. Create an Operating Agreement.
  6. Obtain the nine-digit EIN(federal employer identification number) from the IRS.
  7. File your Statement of Information annually. The filing fee is $15. 

Head over here for a more detailed overview of setting up an LLC in Hawaii.

IDAHO

  1. State Department: https://sos.idaho.gov/
  2. Filing Fees: $100
  3. Annual Fees: None
  4. Individual Income Tax Rate: 5.80%
  5. Average Local Sales Tax Rate: 0.02%
  6. Property Tax Rate: 0.67%
  7. State Ranking For Business-Friendly Environment: #9

How To Form An LLC in Idaho

Here are some basic steps to open a Hawaii LLC:

  1. Select a name for your Idaho LLC(the business name reservation fee is $20).
  2. Create a business plan.
  3. Recruit a registered agent to receive important official and legal documents on your LLC’s behalf. 
  4. Prepare and file Articles of Organization with the Secretary of State. The filing fee is $100. 
  5. Set an Operating Agreement.
  6. Apply for the nine-digit EIN(federal employer identification number) from the IRS.
  7. Lastly, submit your periodic report annually. In Idaho, you should submit the statement yearly on the same date you set up your LLC.

Head here for a more detailed overview of forming an LLC in Idaho.

ILLINOIS

  1. State Department: https://www.ilsos.gov/
  2. Filing Fees: $150
  3. Annual Fees: $75
  4. Individual Income Tax Rate: 4.95%
  5. Average Local Sales Tax Rate: 2.56%
  6. Property Tax Rate: 2.08%
  7. State Ranking For Business-Friendly Environment: #50

How To Form An LLC in Illinois

Here are some basic steps to open an Illinois LLC:

  1. Name your Illinois LLC(the business name reservation fee is $25)
  2. Create a business plan for your LLC.
  3. Assign a registered agent to receive important official and legal documents on your LLC’s behalf. 
  4. Apply for an EIN(Employer Identification Number) with the IRS.
  5. Create an Operating Agreement.
  6. Contact the Illinois Department of Revenue for your LLC’s registration.
  7. Follow the local employer rules and obligations. If your LLC has employees, buy insurance that protects them if they get hurt. You also have to pay taxes that help support unemployed people. Lastly, inform the Illinois Department of Employment Security if you hire new employees within 20 days. 
  8. Submit your periodic report, aka the Statement of Information, annually. The filing fee is $75. 

Head here for a more detailed overview of forming an LLC in Illinois. 

INDIANA

  1. State Department: https://www.in.gov/sos/
  2. Filing Fees: $90
  3. Annual Fees: $30
  4. Individual Income Tax Rate: 3.23%
  5. Combined State and Average Local Sales Tax Rate: 7%
  6. Property Tax Rate: 0.84%
  7. State Ranking For Business-Friendly Environment: #31

How To Form An LLC in Indiana

Here are some basic steps to open an Indiana LLC:

  1. Name your LLC. The business name reservation fee in Indiana is around $20.
  2. Draft a business plan.
  3. Elect a registered agent to accept important official and legal notices and documentation on your LLC’s behalf.
  4. Apply for an Employer Identification Number from the IRS.
  5. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee for online applications is around $95, and $100 for by-mail applications. 
  6. Create an Operating Agreement. 
  7. Submit a Statement of Information annually on your LLC’s birthday(formation date). The filing fee is around $50.

Head here for a more detailed overview of forming an LLC in Indiana.

IOWA

  1. State Department: https://sos.iowa.gov/
  2. Filing Fees: $50
  3. Annual Fees: $60
  4. Individual Income Tax Rate: 6%
  5. Average Local Sales Tax Rate: 0.94%
  6. Property Tax Rate: 1.52%
  7. State Ranking For Business-Friendly Environment: #23

How To Form An LLC in Iowa

Here are some basic steps to open an Iowa LLC:

  1. Choose a name for your Iowa LLC(the business name reservation fee is $20)
  2. Come up with a business plan.
  3. Appoint a registered agent to receive important legal and official notices and documentation on behalf of your LLC.
  4. Obtain the nine-digit EIN from the IRS.
  5. Prepare and file a Certificate of Organization from the Secretary of State(the filing fee is $50)
  6. Draft an Operating Agreement.
  7. You must submit a Statement of Information once in two years between January 1 and April 1, ending with an odd number (like 2023 or 2025). The form tells the government some basic details about your LLC. To file this form quickly and easily, you’ll need to pay a fee of $45 using the Fast Track Filing system.

Head here for a more detailed overview of forming an LLC in Iowa.

KANSAS

  1. State Department: https://sos.ks.gov/
  2. Filing Fees: $165
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 5.7%
  5. Average Local Sales Tax Rate: 2.20%
  6. Property Tax Rate: 1.34%
  7. State Ranking For Business-Friendly Environment: #32

How To Form An LLC in Kansas

Here are some basic steps to open a Kansas LLC:

  1. Decide a name for your Kansas LLC(the business name reservation fee is $30).
  2. Create a business plan for your company.
  3. Hire a registered agent to receive necessary notices and documentation on behalf of your LLC. 
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $30. 
  5. Draft an Operating Agreement. 
  6. Meet Kansas legal requirements if your LLC offers professional services like being a doctor, an accountant, or a lawyer. It’s best to check with the Secretary of State. They can give you specific information about professional LLCs in Kansas.
  7. Apply for the nine-digit federal employer identification number from the IRS.
  8. Submit your Statement of Information. The filing fee through online applications is $50, and through by-mail applications is $55. This report is due on the 15th of the fourth month after your LLC’s tax-closing month.

Head here for a more detailed overview of forming an LLC in Kansas.

KENTUCKY

  1. State Department: https://www.sos.ky.gov/Pages/default.aspx
  2. Filing Fees: $40
  3. Annual Fees: $15
  4. Individual Income Tax Rate: 4.50%
  5. Combined State and Average Local Sales Tax Rate: 6%
  6. Property Tax Rate: 0.83%
  7. State Ranking For Business-Friendly Environment: #40

How To Form An LLC in Kentucky

Here are some basic steps to open a Kentucky LLC:

  1. Pick a name for your Kentucky LLC(the business name reservation fee is $15).
  2. Create a business plan for your LLC.
  3. Hire a registered agent to receive all important legal and official notices and documents. 
  4. Prepare and file Certificate of Authority. The filing fee is $90.
  5. Submit your Articles of Organization document to the Secretary of State. The filing fee is $40.
  6. Draft an Operating Agreement.
  7. Apply for an EIN from the IRS.
  8. File your Statement of Information by June 30 annually. 

Head here for a more detailed overview of forming an LLC in Kentucky.

LOUISIANA

  1. State Department: https://www.sos.la.gov/Pages/default.aspx
  2. Filing Fees: $75
  3. Annual Fees: $30
  4. Individual Income Tax Rate: 4.25%
  5. Average Local Sales Tax Rate: 5.10%
  6. Property Tax Rate: 0.56%
  7. State Ranking For Business-Friendly Environment: #49

How To Form An LLC in Louisiana

Here are some basic steps to open a Louisiana LLC:

  1. Select a name for your Louisiana LLC(the business name reservation fee is $25)
  2. Draft a business plan.
  3. Assign a registered agent to receive all important official and legal documents for your business.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $100.
  5. Apply for an EIN with the IRS.
  6. Create an Operating Agreement. 
  7. Register your company with the State’s tax agency.
  8. Submit your Statement of Information(annual report) annually on your LLC’s birthday(date of formation). The filing fee is $30. 

Head here for a more detailed overview of forming an LLC in Louisiana. 

MAINE

  1. State Department: https://www.maine.gov/sos/
  2. Filing Fees: $175
  3. Annual Fees: $85
  4. Individual Income Tax Rate: 7.15%
  5. Combined State and Average Local Sales Tax Rate: 5.50%
  6. Property Tax Rate: 1.24%
  7. State Ranking For Business-Friendly Environment: #2

How To Form An LLC in Maine

Here are some basic steps to open a Maine LLC:

  1. Pick an LLC name for your company(the business name reservation fee is $20)
  2. Create a business plan.
  3. Appoint a registered agent for your company to receive essential official and legal documents on behalf of your LLC.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is $175. 
  5. Obtain an EIN(federal employer identification number) with the IRS.
  6. Set an Operating Agreement. 
  7. File your annual report on or before June 1 annually. The filing fee is $85. 

Head here for a more detailed overview of forming an LLC in Maine.

MARYLAND

  1. State Department: https://sos.maryland.gov/Pages/default.aspx
  2. Filing Fees: $100
  3. Annual Fees: $300
  4. Individual Income Tax Rate: 5.75%
  5. Combined State and Average Local Sales Tax Rate: 6%
  6. Property Tax Rate: 1.05%
  7. State Ranking For Business-Friendly Environment: #27

How To Form An LLC in Maryland

Here are some basic steps to open a Maryland LLC:

  1. Pick a name for your Maryland LLC(the business name reservation fee is $25)
  2. Set up a business plan for your company. 
  3. Elect a registered agent to receive your LLC’s essential official and legal documents.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is $100. 
  5. Obtain an EIN with the IRS.
  6. Draft an Operating Agreement. 
  7. In Maryland, if you have an LLC, you’ll be subject to a Personal Property Return (PPR). It’s like an annual report. To do this, you must fill out some forms and send them to the Department of Assessments and Taxation before April 15 annually. Here are the forms you usually have to fill out:
  • Annual Report/Personal Property Return (Form 1)
  • Balance Sheet (Form 4A)
  • Depreciation Schedule (Form 4B)
  • Disposal and Transfer Reconciliation (Form 4C), if it applies to you.

Head here for a more detailed overview of forming an LLC in Maryland.

MASSACHUSETTS

  1. State Department: https://www.sec.state.ma.us/
  2. Filing Fees: $500
  3. Annual Fees: $500
  4. Individual Income Tax Rate: 5%
  5. Combined State and Average Local Sales Tax Rate: 6.25%
  6. Property Tax Rate: 1.14%
  7. State Ranking For Business-Friendly Environment: #28

How To Form An LLC in Massachusetts

Here are some basic steps to open a Massachusetts LLC:

  1. Pick a name for your Massachusetts LLC(the business name reservation fee is $30)
  2. Create a business plan.
  3. Appoint a registered agent for your LLC to receive essential official and legal documents on behalf of your LLC.
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $500. 
  5. Obtain an EIN(federal employer identification number) with the IRS.
  6. Set an Operating Agreement. 
  7. File your annual report annually by your LLC’s formation date. The filing fee is $500. 

Head here for a more detailed overview of forming an LLC in Massachusetts.

MICHIGAN

  1. State Department: https://www.michigan.gov/sos/
  2. Filing Fees: $50
  3. Annual Fees: $25
  4. Individual Income Tax Rate: 4.25%
  5. Combined State and Average Local Sales Tax Rate: 6%
  6. Property Tax Rate: 1.38%
  7. State Ranking For Business-Friendly Environment: #33

How To Form An LLC in Michigan

Here are some basic steps to open a Michigan LLC:

  1. Choose a name for your Michigan LLC. The business name reservation fee is $25. You can visit the Michigan Department of Licensing and Regulatory Affairs website for a complete list of naming rules. 
  2. Come up with a business plan for your LLC.
  3. Hire a registered agent in Michigan to accept all important legal and official notices and documentation on behalf of your company.
  4. Organize and prepare your Articles of Incorporation with the Secretary of State. The filing fee is $50. 
  5. Apply for a federal employer Identification Number with the IRS. 
  6. Create an Operating Agreement to avoid future fights and confusion between the members/owners. 
  7. Depending on what kind of business entity your LLC falls under, you may need to obtain a Michigan business license. To know more, you can visit Michigan’s state license website. 
  8. Submit your Statement of Information(annual report) annually on or before February 15. If your LLC is registered after September 30, you don’t have to submit your yearly report on February 15, right after it’s formed and authorized. The filing fee is $25.  
  9. Follow your roles and responsibilities as an employer. In Michigan, you need to:
  • Take out federal, State, and local taxes from employees’ paychecks and send the amount to the government.
  • Inform the authorities about new employees within 20 days of hiring them.
  • Get workers’ compensation insurance to cover work-related injuries.
  • Contribute taxes to the state unemployment fund.

Head here for a more detailed overview of forming an LLC in Michigan. 

MINNESOTA

  1. State Department: https://www.michigan.gov/sos/
  2. Filing Fees: $135
  3. Annual Fees: $35
  4. Individual Income Tax Rate: 9.85%
  5. Average Local Sales Tax Rate: 0.61%
  6. Property Tax Rate: 1.11%
  7. State Ranking For Business-Friendly Environment: #20

How To Form An LLC in Minnesota

Here are some basic steps to open a Minnesota LLC:

  1. Name your Minnesota LLC. The business name reservation fee is $35.
  2. Organize a business plan for your LLC.
  3. Assign a registered agent to receive all important legal, financial, and official notices and documentation on behalf of your company.
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $135 if you opt for filing via mail and $155 for online, expedited, and in-person applications.
  5. Draft an Operating Agreement. 
  6. Apply for an EIN(employer identification number) with the IRS.
  7. Submit the Annual Report(Statement of Information) annually on or before December 31. Minnesota has no filing fee if your business entity is in good standing.
  8. Keep your LLC compliant by following local laws and staying up-to-date with the tax requirements.

Head here for a more detailed overview of forming an LLC in Minnesota. 

MISSISSIPPI

  1. State Department: https://www.sos.ms.gov/
  2. Filing Fees: $50
  3. Annual Fees: $25
  4. Individual Income Tax Rate: 5%
  5. Average Local Sales Tax Rate: 0.07%
  6. Property Tax Rate: 0.67%
  7. State Ranking For Business-Friendly Environment: #47

How To Form An LLC in Mississippi

Here are some basic steps to open a Mississippi LLC:

  1. Pick a name for your Mississippi LLC. The business name reservation fee is $25
  2. Draft a business plan for your LLC.
  3. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $50. 
  4. Get a Federal Employer Identification Number from the IRS.
  5. Create an operating agreement.
  6. File your Statement of Information(annual report) between January 1 and April 15. There are no filing charges in Mississippi. 

Head here for a more detailed overview of forming an LLC in Mississippi.

MISSOURI

  1. State Department: https://www.sos.mo.gov/
  2. Filing Fees: $105 
  3. Annual Fees: None
  4. Individual Income Tax Rate: 5.4%
  5. Average Local Sales Tax Rate: 4.06%
  6. Property Tax Rate: 1.01%
  7. State Ranking For Business-Friendly Environment: #44

How To Form An LLC in Missouri

Here are some basic steps to open a Missouri LLC:

  1. Choose a name for your Missouri LLC. The business name reservation fee is $25
  2. Draft a business plan for your LLC.
  3. Hire a registered agent to receive the necessary official and legal documents for you and your LLC.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $105.
  5. Set an Operating Agreement.
  6. Apply for a federal employer identification number with the IRS.
  7. Since in Missouri, there’s no dire requirement for an annual report. You can focus on other essential aspects of running an LLC, like opening a business bank account and registering your company with the State’s tax agency.

Head here for a more detailed overview of forming an LLC in Missouri.

MONTANA

  1. State Department: https://sosmt.gov/
  2. Filing Fees: $70
  3. Annual Fees: $20-$35
  4. Individual Income Tax Rate: 6.75%
  5. Average Local Sales Tax Rate: 
  6. Property Tax Rate: 0.74%
  7. State Ranking For Business-Friendly Environment: #7

How To Form An LLC in Montana

Here are some basic steps to open a Montana LLC:

Before forming an LLC in Montana, create an account here on Montana’s Business Portal. 

  1. Select a name for your Montana LLC. The business name reservation fee is $20.
  2. Create a business plan for your company.
  3. Appoint a registered agent to receive all your LLC’s important official and legal documents.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $35.
  5. Apply for an EIN(Employer Identification Number) with the IRS. You can apply through online applications or fax or send them a direct draft offline.
  6. Set an Operating Agreement.
  7. Submit your Statement of Information(annual report) through their online portal. The filing fee is $15-20. You can file it annually on or before April 15.

Head here for a more detailed overview of opening an LLC in Montana.

NEBRASKA

  1. State Department: https://sos.nebraska.gov/index
  2. Filing Fees: $100
  3. Annual Fees: $10-$30
  4. Individual Income Tax Rate: 6.64%
  5. Average Local Sales Tax Rate: 1.44%
  6. Property Tax Rate: 1.63%
  7. State Ranking For Business-Friendly Environment: #8

How To Form An LLC in Nebraska

Here are some basic steps to open a Nebraska LLC:

  1. Pick a name for your Nebraska LLC. The business name reservation fee is $30.
  2. Draft a business plan for your company.
  3. Assign a registered agent to accept all necessary official and legal documents and notices for your LLC.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is $100.
  5. Submit your affidavit of publication. In Nebraska, all new businesses need to publish a notice of formation in their local newspaper for three weeks straight. The certificate must be published within 45 days of your LLC’s formation. It should include your business name and address, contact and residential details of your registered agent, and a summary of all the services your LLC will offer. Once the certificate has run its course, the newspaper will send over an “affidavit of publication,” which needs to be registered with the Nebraska State of Secretary.  
  6. Apply for an EIN(Federal Employer Identification Number) with the IRS. 
  7. Prepare an Operating Agreement for your LLC to avoid future fights and confusion.
  8. Submit your Statement of Information biennially on or before April 1. The filing fee is $10. 

Head here for a more detailed overview of opening an LLC in Nebraska. 

NEVADA

  1. State Department: https://www.nvsos.gov/sos
  2. Filing Fees: $75
  3. Annual Fees: $150-$400
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 1.38%
  6. Property Tax Rate: 0.59%
  7. State Ranking For Business-Friendly Environment: #29

How To Form An LLC in Nevada

Here are some basic steps to open a Nevada LLC:

  1. Choose a name for your Nevada LLC. The business name reservation fee is $25.
  2. Create a business plan for your company.
  3. Appoint a registered agent to receive important legal, official, and financial records, notices, and documentation on behalf of your LLC.
  4. Obtain a federal Employer Identification Number with the IRS.
  5. Prepare and file your Articles of Organization report with the Nevada Secretary of State. The filing fee is $75. 
  6. Prepare an Operating Agreement for your LLC.
  7. Submit your annual report(statement of information/ periodic report) annually by the end of your LLC’s birthday. The filing fee is $150. 

Head here for a more detailed overview of opening an LLC in Nevada.

NEW HAMPSHIRE

  1. State Department: https://www.sos.nh.gov/
  2. Filing Fees: $100
  3. Annual Fees: $100
  4. Individual Income Tax Rate: 4%
  5. Average Local Sales Tax Rate: None
  6. Property Tax Rate: 1.93%
  7. State Ranking For Business-Friendly Environment: #18

How To Form An LLC in New Hampshire

Here are some basic steps to open a New Hampshire LLC:

  1. Pick a name for your New Hampshire LLC. The business name reservation fee is $15
  2. Prepare a business plan for your LLC.
  3. Appoint a registered agent for your LLC to accept all essential notices and documentation.
  4. Prepare and file your Articles of Incorporation. The filing fee is $15. 
  5. Apply for a federal Employer Identification Number with the IRS. 
  6. Create an Operating Agreement.
  7. Obtain necessary business licenses and permits. In New Hampshire, some companies must apply for a special license and permit from the local government. You can use New Hampshire’s Online License Application/Renewal Service to check if your business needs a license.
  8. Submit your Statement of Information(annual report) annually on or before April 1. The filing fee is $100.

Head here for a more detailed overview of opening an LLC in New Hampshire.

NEW JERSEY

  1. State Department: https://www.state.nj.us/state/
  2. Filing Fees: $125
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 10.750%
  5. Average Local Sales Tax Rate: -0.03%
  6. Property Tax Rate: 2.23%
  7. State Ranking For Business-Friendly Environment: #43

How To Form An LLC in New Jersey

Here are some basic steps to open a New Jersey LLC:

  1. Name your New Jersey LLC. The business name reservation fee is $50.
  2. Create a business plan for your company.
  3. Assign a registered agent to receive important official, financial, and legal notices and documentation on behalf of your LLC.
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $125. For nonprofit organizations, the fee is $75. 
  5. Apply for an EIN(Federal Employer Identification Number) from the IRS.
  6. Obtain essential business licenses and permits. You may need a special license and permit to function as an LLC in New Jersey. To determine if your business needs a license or permit to operate, you can check out the Licensing & Certification Guide for New Jersey. If your industry falls under the category, you must get a specific license or permit for your business.
  7. Draft an Operating Agreement to avoid future fights and misunderstandings between the members/owners of your LLC.
  8. Submit your Annual Report(periodic report/statement of information) annually by the last date of your LLC formation month. The filing fee is $75.  

Head here for a more detailed overview of opening an LLC in New Jersey.

NEW MEXICO

  1. State Department: https://www.sos.nm.gov/
  2. Filing Fees: $50
  3. Annual Fees: None
  4. Individual Income Tax Rate: 5.9%
  5. Average Local Sales Tax Rate: 2.71%
  6. Property Tax Rate: 0.67%
  7. State Ranking For Business-Friendly Environment: #22

How To Form An LLC in New Mexico

Here are some basic steps to open a New Mexico LLC:

Before forming an LLC in New Mexico, you can create an account on their Corporations and Business Search Portal

  1. Pick a name for your New Mexico LLC. The business name reservation fee is $20
  2. Create a business plan for your company.
  3. Elect a registered agent to receive all important legal and official documents and notices on behalf of your LLC.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is $50.
  5. Obtain an EIN(federal employer Identification Number) with the IRS.
  6. Draft an Operating Agreement.
  7. In New Mexico, filing annual reports for your LLC is not required.

Head here for a more detailed overview of opening an LLC in New Mexico.

NEW YORK

  1. State Department: https://dos.ny.gov/
  2. Filing Fees: $200
  3. Annual Fees: $25-$4,500
  4. Individual Income Tax Rate: 10.9%
  5. Average Local Sales Tax Rate: 4.52%
  6. Property Tax Rate: 1.40%
  7. State Ranking For Business-Friendly Environment: #36

How To Form An LLC in New York

Here are some basic steps to open a New Mexico LLC:

  1. Pick a name for your New York LLC. The business name reservation fee is $20.
  2. Create a business plan for your company.
  3. You need to provide the New York Department of State with an address where they can send important legal documents on behalf of the Secretary of State. Doing this ensures that official papers or notices related to your business will reach you promptly and reliably.
  4. Elect a registered agent for your LLC. In New York, it’s necessary to choose the Secretary of State as the registered agent for your LLC. However, you can also select another New York resident or a registered agent business to serve as the agent for your LLC if you prefer. The additional agent will help handle important communications and legal notices and documents on behalf of your LLC.
  5. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $200.
  6. Then, you need to publish your articles of organization report in two newspapers. Remember that the county clerk in your LLC’s office will choose the newspapers where you need to publish notices. These notices will be published once a week for up to six weeks.
  7. Once you’ve published your notices, the newspapers will send you an affidavit of publication as proof. You must keep these affidavits and a Certificate of Publication and submit them to the New York Department of State. Remember, there is a fee of $50 for filing. Submit these documents within 120 days of your LLC’s formation. It’s important to meet this deadline to complete the required filing process with the State.
  8. Apply for an EIN(employer identification number) with the IRS.
  9. Draft an Operating Agreement.
  10. Submit your Statement of Information(annual report) once every two years by the end of your LLC’s birthday month. The filing fee is $9.

Head here for a more detailed overview of opening an LLC in New York. 

NORTH CAROLINA

  1. State Department: https://www.sosnc.gov/
  2. Filing Fees: $125
  3. Annual Fees: $200
  4. Individual Income Tax Rate: 4.99%
  5. Average Local Sales Tax Rate: 2.23%
  6. Property Tax Rate: 0.82%
  7. State Ranking For Business-Friendly Environment: #16

How To Form An LLC in North Carolina

Here are some basic steps to open a North Carolina LLC:

  1. Select a name for your North Carolina LLC. The business name reservation fee is $10
  2. Create a business plan for your company.
  3. Elect a registered agent to accept important legal, official, and financial notices and documents on behalf of your LLC.
  4. Prepare and file your Articles of Incorporation. The filing fee is $125.
  5. Apply for an EIN(federal employer identification number) with the Internal Revenue Service.
  6. Prepare an Operating Agreement.
  7. Submit your annual report(statement of information/periodic report) annually on or before April 15, once your year of formation ends. The filing fee is $200. 

Head here for a more detailed overview of opening an LLC in North Carolina.

NORTH DAKOTA

  1. State Department: https://sos.nd.gov/
  2. Filing Fees: $135
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 2.90%
  5. Average Local Sales Tax Rate: 1.96%
  6. Property Tax Rate: 0.98%
  7. State Ranking For Business-Friendly Environment: #6

How To Form An LLC in North Dakota

Here are some basic steps to open a North Dakota LLC:

  1. Choose a name for your LLC. The business name reservation fee is $10.
  2. Draft a business plan for your company.
  3. Elect a registered agent to receive essential legal, financial, and official notices and documents on behalf of your LLC.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is $135.
  5. Apply for an EIN(federal employer identification number) with the IRS.
  6. Prepare an operating Agreement to avoid any future confusion, conflicts, and misunderstandings between the members/owners of your LLC.
  7. Submit your annual report on or before November 15 annually. The filing fee is $50. 

Head here for a more detailed overview of opening an LLC in North Dakota.

OHIO

  1. State Department: https://www.sos.state.oh.us/
  2. Filing Fees: $99
  3. Annual Fees: None
  4. Individual Income Tax Rate: 3.99%
  5. Average Local Sales Tax Rate: 1.47%
  6. Property Tax Rate: 1.59%
  7. State Ranking For Business-Friendly Environment: #35

How To Form An LLC in Ohio

Here are some basic steps to open an Ohio LLC:

  1. Select a name for your Ohio LLC. The business name reservation fee is $39
  2. Create a business plan for your company.
  3. Assign a registered agent to receive and accept all important official, legal, and financial documents on behalf of your LLC.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $99.
  5. Obtain an Ohio business license if applicable. To check if your company needs a business or vendor’s license, refer to Ohio’s business guide. You can review their list to determine if you need a license for your business or vendor activities in Ohio.
  6. Obtain an EIN(federal Employer Identification Number) with the IRS.
  7. Draft an Operating Agreement to avoid future fights, misunderstandings, or confusion between the members/owners.
  8. In Ohio, there’s no specific requirement to file annual reports.
  9. Fulfill your responsibilities as an employer. 
  • If and when you hire or rehire new employees, report them to Ohio New Hire Reporting Center within 20 days.
  • When you hire your first employee, purchase worker’s compensation insurance. 
  • Lastly, you should create a tax account for employment compensation with the Ohio Department of Job and Family Services.

Following these steps ensure you’re meeting the necessary obligations as an employer in Ohio.

Head here for a more detailed overview of opening an LLC in Ohio.

OKLAHOMA

  1. State Department: https://www.sos.ok.gov/
  2. Filing Fees: $100
  3. Annual Fees: $25
  4. Individual Income Tax Rate: 4.75%
  5. Average Local Sales Tax Rate: 4.47%
  6. Property Tax Rate: 0.89%
  7. State Ranking For Business-Friendly Environment: #14

How To Form An LLC in Oklahoma

Here are some basic steps to open an Oklahoma LLC:

  1. Choose a name for your Oklahoma LLC. The business name reservation fee is $10.
  2. Create a business plan for your company.
  3. Elect a registered agent to receive and accept your necessary legal, official, and financial notices and documents for your LLC.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $100.
  5. Draft an Operating Agreement.
  6. Apply for an EIN(Employer Identification Number) with the IRS.
  7. Submit your Statement of Information(annual report) annually before your LLC’s birthday month ends. The filing fee is $25.

Head here for a more detailed overview of opening an LLC in Oklahoma.

OREGON

  1. State Department: https://sos.oregon.gov/Pages/index.aspx
  2. Filing Fees: $100
  3. Annual Fees: $100
  4. Individual Income Tax Rate: 9.9%
  5. Average Local Sales Tax Rate: None
  6. Property Tax Rate: 0.93%
  7. State Ranking For Business-Friendly Environment: #25

How To Form An LLC in Oregon

Here are some basic steps to open an Oregon LLC:

  1. Select a name for your Oregon LLC. The business name reservation fee is $100.
  2. Create a business plan for your LLC.
  3. Assign a registered agent to accept and receive essential documents and notices on behalf of your LLC.
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $100.
  5. Apply for an EIN(Employer Identification Number) with the IRS.
  6. Draft an Operating Agreement to avoid future fights, misunderstandings, and confusion between the members/owners.
  7. File your statement of information(annual report) annually on or before your LLC’s birthday. The State will send you reminders and notifications 45 days before the last day. The filing fee is $100. 

Head here for a more detailed overview of opening an LLC in Oregon.

PENNSYLVANIA

  1. State Department: https://www.dos.pa.gov/Pages/default.aspx
  2. Filing Fees: $125
  3. Annual Fees: None
  4. Individual Income Tax Rate: 3.07%
  5. Average Local Sales Tax Rate: 0.34%
  6. Property Tax Rate: 1.49%
  7. State Ranking For Business-Friendly Environment: #39

How To Form An LLC in Pennsylvania

Here are some basic steps to open a Pennsylvania LLC:

  1. Pick a name for your Pennsylvania LLC. The business name reservation fee is $70.
  2. Create a business plan for your company.
  3. Assign a registered agent to accept and receive necessary legal, official, and financial documents and notices on behalf of your LLC.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $125.
  5. Draft an Operating Agreement.
  6. Submit your decennial report(statement of information/periodic report). You need to file your reports in Pennsylvania every ten years, like 2001, 2011, and 2021. The filing fee is $70. 
  7. Fulfill your roles and responsibilities as an employer. 
  • If and when you hire or rehire new employees, report them to the government within 20 days of their hiring.
  • Take out federal, State, and local income taxes from your employee’s wages and send that money to the government.
  • Make sure you pay taxes to the state employment fund. 
  • Lastly, buy worker’s compensation insurance to help cover any injuries your employees may have while doing their job. 

 By doing these things, you’ll be fulfilling your obligations as an employer and keeping things fair and safe for your employees.

Head here for a more detailed overview of opening an LLC in Pennsylvania.

RHODE ISLAND

  1. State Department: https://www.sos.ri.gov/
  2. Filing Fees: $150
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 5.99%
  5. Combined State and Average Local Sales Tax Rate: 7%
  6. Property Tax Rate: 1.40%
  7. State Ranking For Business-Friendly Environment: #24

How To Form An LLC in Rhode Island

Here are some basic steps to open a Rhode Island LLC:

  1. Choose a name for your Rhode Island LLC. The business name reservation fee is $50.
  2. Draft a business plan for your company.
  3. Elect a registered agent to receive all essential legal, official, and financial documents and notices for your LLC.
  4. Prepare and file your Articles of Organization form with the Secretary of State. The filing fee is 150.
  5. Apply for a federal employer identification number(EIN) with the IRS.
  6. Draft an Operating Agreement.
  7. Submit your Statement of Information(annual report/periodic report) annually between February 1 and July 1. The filing fee is $50. 

Head here for a more detailed overview of opening an LLC in Rhode Island.

SOUTH CAROLINA

  1. State Department: https://sos.sc.gov/
  2. Filing Fees: $110
  3. Annual Fees: None
  4. Individual Income Tax Rate: 6.50%
  5. Average Local Sales Tax Rate: 1.43%
  6. Property Tax Rate: 0.57%
  7. State Ranking For Business-Friendly Environment: #37

How To Form An LLC in South Carolina

Here are some basic steps to open a South Carolina LLC:

  1. Name your South Carolina LLC. The business name reservation fee is $25.
  2. Prepare a business plan for your company.
  3. Appoint a registered agent to receive your LLC’s all-important legal, official, and financial notices and documentation.
  4. Prepare and file your Articles of Incorporation with the Secretary of State. The filing fee is $110.
  5. Apply for an EIN(Employer Identification Number) with the IRS.
  6. Draft an Operating Agreement.
  7. There’s no particular requirement for submitting your annual report in South Carolina.

Head here for a more detailed overview of opening an LLC in South Carolina.

SOUTH DAKOTA

  1. State Department: https://sdsos.gov/
  2. Filing Fees: $150
  3. Annual Fees: $50
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 1.90%
  6. Property Tax Rate: 1.17%
  7. State Ranking For Business-Friendly Environment: #10

How To Form An LLC in South Dakota

Here are some basic steps to open a South Dakota LLC:

  1. Pick a name for your South Dakota LLC. The business name reservation fee is $25.
  2. Prepare a business plan for your company.
  3. Hire a registered agent to accept and receive your LLC’s important official and legal documents.
  4. Prepare and file your Articles of Organization report with the Secretary of State. The filing fee is $165 if you file by mail and $150 for online applications. 
  5. Obtain an EIN(federal employer identification number) with the IRS.
  6. Draft an Operating Agreement.
  7. Submit your annual report(statement of information/periodic report) annually by the beginning of your LLC’s birthday month. The filing fee is $50. 

Head here for a more detailed overview of opening an LLC in South Dakota.

TENNESSEE

  1. State Department: https://sos.tn.gov/
  2. Filing Fees: $300-$3,000 + $50 a Member
  3. Annual Fees: $300-$3,000 + $50 a Member
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 2.55%
  6. Property Tax Rate: 0.67%
  7. State Ranking For Business-Friendly Environment: #34

How To Form An LLC in Tennessee

Here are some basic steps to open a Tennessee LLC:

  1. Choose a name for your Tennessee LLC. The business name reservation fee is $20.
  2. Prepare a business plan for your company.
  3. Assign a registered agent to accept and receive important official, legal, and financial notices and documents for your LLC.
  4. Prepare and file your Articles of Incorporation report with the Secretary of State. The filing fee is $50 for existing LLC members/owners. However, there is a minimum charge of $300 and a maximum of $3,000 for both applications sent by mail and submitted electronically.
  5. Apply for a federal employer identification number with the IRS.
  6. Draft an Operating Agreement.
  7. Submit your Annual Report(statement of information/periodic report) annually. The filing fee is $300 for LLCs with up to six members; for each extra member, the price goes up by $50, with a maximum fee of $3,000.

Head here for a more detailed overview of opening an LLC in Tennessee.

TEXAS

  1. State Department: https://www.sos.state.tx.us/index.shtml
  2. Filing Fees: $300
  3. Annual Fees: None
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 1.95%
  6. Property Tax Rate: 1.68%
  7. State Ranking For Business-Friendly Environment: #38

How To Form An LLC in Texas

Here are some basic steps to open a Texas LLC:

  1. Pick a name for your LLC in Texas(the business name reservation fee is $40). 
  2. Create a business plan for your LLC.
  3. Assign a registered agent to receive all necessary legal and official notices and documents for your LLC.
  4. Prepare and file your Articles of Incorporation report with the Secretary of State. The filing fee is $300. 
  5. Draft an Operating Agreement.
  6. Apply for an EIN (federal Employment Identification Number) with the IRS.
  7. You must file an LLC Franchise Tax and Public Information Report as a Texas LLC. You don’t have to worry about filing an annual report or paying any fees for reporting. However, you do have to pay a state franchise tax every year by May 15.

Head here for a more detailed overview of opening an LLC in Texas.

UTAH

  1. State Department: https://corporations.utah.gov/
  2. Filing Fees: $70
  3. Annual Fees: $20
  4. Individual Income Tax Rate: 4.58%
  5. Average Local Sales Tax Rate: 1.09%
  6. Property Tax Rate: 0.57%
  7. State Ranking For Business-Friendly Environment: #19

How To Form An LLC in Utah

Here are some basic steps to open a Utah LLC:

  1. Pick a name for your Utah LLC(the business name reservation fee is $22).
  2. Create a business plan for your LLC.
  3. Assign a registered agent to receive all essential legal and official notices and documentation on behalf of your LLC.
  4. Prepare and file Articles of Organization with the Secretary of State. The filing fee is $54.
  5. Apply for an EIN with the IRS. 
  6. Draft an Operating Agreement.
  7. Submit your Annual Report annually on your LLC’s birthday(formation date). The filing fee is $18.

Head here for a more detailed overview of opening an LLC in Utah.

VERMONT

  1. State Department: https://sos.vermont.gov/
  2. Filing Fees: $125
  3. Annual Fees: $35
  4. Individual Income Tax Rate: 8.75%
  5. Average Local Sales Tax Rate: 0.30%
  6. Property Tax Rate: 1.83%
  7. State Ranking For Business-Friendly Environment: #11

How To Form An LLC in Vermont

Here are some basic steps to open a Vermont LLC:

  1. Choose a name for your Vermont LLC(the business name reservation fee is $20)
  2. Create a business plan.
  3. Hire a registered agent for your LLC.
  4. Prepare and file your Certificate of Formation report with the Secretary of State. The filing fee is $125.
  5. Apply for an EIN (federal employer identification number) from the IRS.
  6. Create an Operating Agreement. 
  7. Submit your Statement of Information annually. The filing fee is $35. 

Head here for a more detailed overview of opening an LLC in Vermont.

VIRGINIA

  1. State Department: https://www.virginia.gov/
  2. Filing Fees: $100
  3. Annual Fees: $50
  4. Individual Income Tax Rate: 5%
  5. Average Local Sales Tax Rate: 5.25%
  6. Property Tax Rate: 0.40%
  7. State Ranking For Business-Friendly Environment: #12

How To Form An LLC in Virginia

Here are some basic steps to open a Virginia LLC:

  1. Name your Virginia LLC(the business name reservation fee is $10).
  2. Draft a business plan.
  3. Appoint a registered agent for your LLC.
  4. Prepare and file your Articles of Incorporation report with the Secretary of State. The filing fee is $100. 
  5. Set an Operating Agreement.
  6. Obtain the nine-digit EIN(federal employer identification number) from the IRS.
  7. Comply with employer obligations like informing the government about any new employees you hire within 20 days of their starting date. Also, you must take out federal, State, and local income taxes from your employees’ paychecks and send the collected amount to the government. In addition, contribute to the state unemployment fund by paying the required taxes. Get insurance that covers any injuries or accidents to your employees while working.
  8. In Virginia, there’s no requirement to file an annual report. 

Head here for a more detailed overview of opening an LLC in Virginia.

WEST VIRGINIA

  1. State Department: https://sos.wv.gov/Pages/default.aspx
  2. Filing Fees: $100
  3. Annual Fees: $25
  4. Individual Income Tax Rate: 6.50%
  5. Average Local Sales Tax Rate: 0.55%
  6. Property Tax Rate: 0.57%
  7. State Ranking For Business-Friendly Environment: #12

How To Form An LLC in West Virginia

Here are some basic steps to open a West Virginia LLC:

  1. Pick a name for your West Virginia LLC(the business name reservation fee is $15)
  2. Set up a business plan.
  3. Recruit a registered agent for your LLC.
  4. Prepare and file the Articles of Incorporation form with the Secretary of State. The filing fee is $100.
  5. Draft an Operating Agreement.
  6. Get a West Virginia Business Registration Certificate. Before starting any business activities, domestic and foreign LLCs must register with the state tax department and pay the required fee. This step is extremely important to operate legally in the State. The filing fee is $30.
  7. Apply for an EIN with the IRS. 
  8. Finally, submit your Statement of Information between January 1 and July 1. The filing fee is $25. 

Head here for a more detailed overview of opening an LLC in West Virginia.

WISCONSIN

  1. State Department: https://sos.wi.gov/
  2. Filing Fees: $130
  3. Annual Fees: $25
  4. Individual Income Tax Rate: 7.65%
  5. Average Local Sales Tax Rate: 0.43%
  6. Property Tax Rate: 1.61%
  7. State Ranking For Business-Friendly Environment: #13

How To Form An LLC in Wisconsin

Here are some basic steps to open a Wisconsin LLC:

  1. Pick a name for your LLC(the business name reservation fee is $15).
  2. Draft a business plan.
  3. Appoint a registered agent for your LLC.
  4. Prepare and file Articles of Organization with the Secretary of State(filing fee for online submission is $130 and $170 for by-mail submissions. 
  5. Obtain the nine-digit EIN(federal employer identification number) from the IRS.
  6. Create an Operating Agreement.
  7. Submit your Statement of Information to the Wisconsin Department of Financial Institutions(DFI). They’ll send forms to your registered agent’s address and inform you when the submission is due. These forms will have the necessary information to complete the report online. The filing fee is $25.

Head here for a more detailed overview of opening an LLC in Wisconsin.

WYOMING

  1. State Department: https://sos.wyo.gov/
  2. Filing Fees: $100
  3. Annual Fees: $60
  4. Individual Income Tax Rate: None
  5. Average Local Sales Tax Rate: 1.36%
  6. Property Tax Rate: 0.56%
  7. State Ranking For Business-Friendly Environment: #4

How To Form An LLC in Wyoming

Here are some basic steps to open a Wyoming LLC:

  1. Name your Wyoming LLC(the business name reservation fee is $60)
  2. Draft a business plan for your LLC.
  3. Assign a registered agent.
  4. Apply for an EIN(federal employer identification number) with the IRS.
  5. Prepare and file the Articles of Organization. The filing fee in Wyoming is around $100.
  6. Create an Operating Agreement.
  7. Pay the license tax. LLCs in Wyoming need to pay off a license tax. This tax is based on the assets they own or are employed in the State. They’re due from the beginning of your second business year. If your business in Wyoming has assets worth less than $300,000, you need to pay a fee of $60. However, if your business has more than $300,000 in assets, you need to calculate your tax by multiplying the number of assets by 0.0002.

Head here for a more detailed overview of forming an LLC in Wyoming.

The Bottom Line

Our ultimate advice in selecting a state to form your LLC would be to ‘take your time.’ Take your time figuring out the basics and not-so-basics. Even though forming an LLC in all 50 states can be beneficial and relatively straightforward, it can still be confusing. 

You can confidently establish your LLC by following the general steps outlined in our guide, such as choosing a name, filing the necessary documents, and fulfilling any specific requirements. Remember to consult with professionals or resources specific to your State for accurate and up-to-date information.

With proper planning and adherence to state rules and regulations, anyone can be an LLC master!

Frequently Asked Questions​

The cost of starting an LLC can vary depending on several factors, including the State where you’re forming your LLC and any additional services you may require. Here are some common expenses associated with starting an LLC:

 

Registration Costs like, 

  • Reserving a name for your LLC
  • Filing the Articles of Organization
  • EIN Application
  • Publication Fees
  • Operating Agreement
  • LLC Business Licenses and Permits.

Once your LLC is up and running, some maintenance charges come along, like, 

  • Franchise Taxes
  • Annual Reports
  • Registered Agents

Refer to our previous article for further information on the same topic.

Yes, an LLC can have foreign members/owners. There are no restrictions on the citizenship or residency of the members.

LLCs and corporations primarily differ regarding structure, management requirements, and tax treatment. Corporations issue shares of stock and have a more formal management structure, while LLCs have members and offer more flexibility in management and tax options.

An LLC should generally file annual reports, pay state fees and taxes, and maintain regular records and documentation. The exact obligations vary from State to State, so it’s important to remain updated with your State’s rules and laws.

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