Starting an LLC in the US is a smart way to protect your personal assets while keeping your business taxes simple. But costs and steps can vary a lot depending on the state you pick. In 2026, knowing exactly what to expect in each state can save you money and time. This guide breaks down the process and fees for filing an LLC, so you can make the best choice for your business.

Quick Overview: Key Steps and State Costs

  • Choose your state
  • Pick a business name and check availability
  • Designate a registered agent
  • File Articles of Organization
  • Get your EIN from IRS
  • Open a business bank account
  • Obtain necessary licenses and permits

State filing fees (examples): Wyoming $100, Delaware $90, California $70 plus $800 franchise tax, New York $200 plus publication requirement (~$1,500), Texas $300, Florida $125. Keep in mind these are base fees; additional costs like annual reports, taxes, and publication fees can add up depending on your state.

What Is an LLC?

An LLC, or Limited Liability Company, is a business structure that protects your personal assets from business debts and lawsuits. It offers "pass-through" taxation, meaning the company's profits and losses pass directly to your personal tax return, avoiding corporate taxes. This setup often simplifies taxes for small business owners and provides flexibility in management and ownership.

LLCs can have one or multiple members, and they can be managed by members or managers designated in the operating agreement. This flexibility makes LLCs a top choice for freelancers, startups, and family businesses.

Prerequisites Before You Start

Before filing your LLC, make sure you:

  • Choose the state where you will register your LLC — usually the state where you conduct business. Registering out-of-state can lead to additional fees and paperwork.
  • Pick a unique business name that meets your state's naming rules — typically it must include "LLC" or "Limited Liability Company" and can’t be too similar to other registered names.
  • Decide on a registered agent who will receive legal documents on behalf of your LLC. You can act as your own agent if you have a physical address in the state, or you can hire a professional service, which usually costs $100 to $300 per year.

Step-By-Step Guide to Starting an LLC in the US in 2026

1. Choose Your State

Your LLC’s legal home is important. Many people just pick their own state for simplicity, but some choose popular business states like Wyoming, Delaware, or Nevada for advantages like privacy, low fees, or no state income tax.

Popular states and costs:

  • Wyoming: $100 filing fee; known for low ongoing fees, strong privacy protections, and no corporate or personal income tax. Annual report fee is $60 minimum. Wyoming is a favorite for small businesses wanting simplicity and low cost.
  • Delaware: $90 filing fee; attracts many businesses due to its well-developed legal system and business-friendly courts. However, Delaware charges an annual franchise tax of $300 minimum up to $200,000 depending on your company’s size and structure. Annual reports cost $50.
  • Nevada: No state income tax and strong privacy laws, but initial filing fees are higher. The Articles of Organization filing fee is $425 (includes $150 business license fee and $200 initial list of managers/members). Annual fees can be $350 or more.
  • California: $70 filing fee, but an $800 minimum annual franchise tax applies regardless of income. California also requires an initial Statement of Information within 90 days of formation, costing $20. The franchise tax is due annually, starting the second tax year after formation.
  • New York: $200 filing fee plus a publication requirement that can cost around $1,500 depending on the county. You must publish notices in two newspapers for six weeks and file a Certificate of Publication with the Department of State. Annual fees are $9 per member or $25 minimum.
  • Texas: $300 filing fee. Texas doesn't have an annual report fee but requires a Public Information Report filed annually. Texas also charges a franchise tax based on revenue, with a no-tax-due threshold of $1,230,000 (as of 2026).
  • Florida: $125 filing fee. Florida requires an annual report with a $138.75 fee to maintain active status. No state income tax makes it attractive for many small businesses.

2. Pick Your Business Name and Check Availability

Each state requires your LLC’s name to be unique and follow specific rules. To check availability, use your state’s Secretary of State website. For example, Delaware’s Division of Corporations has an online search tool.

If your name is taken, you’ll need to pick a new one or add a distinguishing word.

Some states also require your name to include "Limited Liability Company" or abbreviations like "LLC" or "L.L.C." and prohibit certain words that imply a different type of business, like "bank" or "insurance," without proper approval.

3. Designate a Registered Agent

Your registered agent receives official legal documents and government notices. You must list this agent on your Articles of Organization. You can be your own agent if you have a physical address in the state and are available during business hours. Otherwise, you can hire a registered agent service, which typically costs $100 to $300 per year.

4. File Articles of Organization

This is the official document that creates your LLC. You file it with the Secretary of State or equivalent office. You’ll need to provide your LLC’s name, address, registered agent information, and sometimes member or manager details.

Filing can usually be done online, by mail, or in person. Processing times vary by state — some states like Delaware process same-day for an extra fee, while others take several weeks. Fees range from $50 in some states to over $400 in Nevada.

5. Obtain an EIN from the IRS

An Employer Identification Number (EIN) is required for tax purposes, hiring employees, and opening a business bank account. You can apply for an EIN for free on the IRS website. The online application is fast and provides your EIN immediately upon completion.

6. Open a Business Bank Account

Separating your personal and business finances is key to maintaining liability protection. Most banks require your Articles of Organization, EIN, and a resolution authorizing account opening if you have multiple members. Shop around for business bank accounts with low fees and online banking.

7. Obtain Necessary Licenses and Permits

Depending on your industry and location, you may need local, state, or federal licenses or permits. Check with your city or county government and your state’s licensing board. For example, restaurants need health permits, while contractors need state licensing. Renewals often happen annually or biennially.

Tips for Starting Your LLC in 2026

  • Consider ongoing fees and taxes, not just initial filing costs. Some states have low startup fees but high annual taxes.
  • Use a professional registered agent service if you want privacy or don’t have a physical address in your state. This also keeps your personal address off public records.
  • File your LLC online for faster processing and fewer mistakes.
  • Keep your operating agreement handy. While not required in every state, it clarifies LLC management and ownership rights, which helps prevent disputes.
  • Check deadlines for annual reports and franchise taxes to avoid penalties. Deadlines vary by state but often fall on your LLC’s anniversary month.

Common Mistakes to Avoid

  • Not checking name availability properly, leading to rejected filings or trademark conflicts.
  • Choosing a state just based on low filing fees without considering where you actually do business — registering out-of-state can trigger extra fees and paperwork.
  • Missing annual report or franchise tax deadlines, which can result in fines or LLC dissolution.
  • Failing to get an EIN before opening a bank account, which banks require for business accounts.
  • Ignoring the publication requirement in states like New York, which can delay your LLC formation.
  • Not separating personal and business finances, risking loss of liability protection.

Starting an LLC in the US in 2026 means understanding your state’s specific costs and rules. From Wyoming’s low fees and no income tax to California’s steep $800 annual franchise tax, these differences matter. Follow each step carefully—from choosing your state and name to filing your Articles of Organization and getting your EIN—and avoid common mistakes like missing deadlines or ignoring publication rules. This way, your LLC will be set up right to protect your assets and grow your business.