How Much Does it Cost to Incorporate Your Business?

So 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.