Can a foreigner open a US LLC remotely?

Yes. Non-residents can form an LLC in any state online without visiting the US. You will need a Registered Agent service.

Cheapest State to Form an LLC? 2026 Ranking

Q: What is the absolute cheapest state to form an LLC?

For initial filing, Kentucky ($40) is the cheapest. For long-term ownership, New Mexico ($0 annual fee) is the most affordable state.

⚡ Quick Verdict: The 2026 Winners

Don’t have time to read the full 50-state analysis? Here is the cheat sheet for the cheapest and safest states:

🏆 New Mexico Best Overall Value ($0 Annual Fee)

🔒 Wyoming Best for Privacy & Remote Sellers

📉 Kentucky Lowest Upfront Filing Cost ($40)

Finding the cheapest state to form or open a LLC in USA is the first strategic move for any smart entrepreneur looking to sell on Amazon Remotely, Open a LLC in USA to run Freelance Business, call center or Selling on Shopify. But “cheap” can be misleading.

A state like Arkansas lures you in with a low $45 filing fee, only to hit you with a mandatory $150 franchise tax every year.

To prevent you from falling into these tax traps, we analyzed the 2026 Fee Structures from all 50 Secretary of State databases. We didn’t just rank by startup cost, we ranked by Total First-Year Cost (Filing Fee + Annual Report), giving you the true financial picture.

Table of Contents

🏆 The 2026 Top Picks LLC by Category

🥇

New Mexico – Best for Zero Maintenance

Start: $50
Annual: $0

New Mexico is the only state with a low startup fee AND zero annual reports. It allows for anonymous ownership and is the cheapest long-term option.

🥈

Wyoming – Best for Privacy & E-com

Start: $100
Annual: $60

While slightly more expensive than NM, Wyoming offers stronger asset protection laws and is the industry standard for non-resident Amazon sellers.

Read the Wyoming Guide →

🥉

Kentucky – Best for Lowest Startup Cost

Start: $40
Annual: $15

If your priority is spending the absolute minimum *today* to get your Articles of Organization, Kentucky is the current price leader at $40.

🇺🇸 50-State LLC Cost Ranking (Verified 2026 Data)

This table is sorted by the Lowest Initial Filing Fee. Pay close attention to the “Annual Fee” and “Hidden Costs” columns to avoid expensive surprises.

#	State	Filing Fee	Annual Fee	Hidden Costs / Notes
1	Kentucky	$40	$15	Lowest Start Simple annual report.
2	Arkansas	$45	$150	Tax Trap Mandatory franchise tax.
3	New Mexico	$50	$0	Best Value No annual report required.
4	Missouri	$50	$0	No annual report required.
5	Mississippi	$50	$0	Must file report, but fee is $0.
6	Colorado	$50	$10	Very fast online filing.
7	Hawaii	$50	$15	Isolated banking hours.
8	Michigan	$50	$25	Standard annual fee.
9	Iowa	$50	$45	Biennial (every 2 years) report.
10	Arizona	$50	$0	Publication Newspaper notice cost ~$150+.
11	Utah	$54	$18	Small annual renewal fee.
12	California	$70	$800	Expensive $800 min tax every year.
13	Montana	$70	$20	Low maintenance costs.
14	Delaware	$90	$300	Standard for VC/Startups. Tax due June 1.
15	Indiana	$95	$30	Biennial report ($30 every 2 years).
16	Ohio	$99	$0	No annual report/fee.
17	Wyoming	$100	$60	Privacy Best for remote sellers.
18	Georgia	$100	$50	Simple annual registration.
19	Idaho	$100	$0	Report required, but $0 fee.
20	Oregon	$100	$100	Flat fees for everything.
21	Virginia	$100	$50	Annual registration fee.
22	Washington	$200	$60	Initial fee varies ($180-$200).
23	Louisiana	$100	$35	Low annual fee.
24	Maryland	$100	$300	Personal Property Return required.
25	Oklahoma	$100	$25	Annual certificate fee.
26	North Dakota	$135	$50	Annual report due Nov 15.
27	Florida	$125	$138	Strict $400 penalty if late.
28	N. Carolina	$125	$200	Annual report is pricey.
29	Pennsylvania	$125	$70	Decennial filing (every 10 years).
30	New Jersey	$125	$75	Annual report fee.
31	South Carolina	$110	$0	No report unless S-Corp.
32	W. Virginia	$100	$25	Annual report due July 1.
33	Nebraska	$105	$10	Publication Newspaper notice required.
34	Connecticut	$120	$80	Annual report due Mar 31.
35	Rhode Island	$150	$50	Annual report fee.
36	Vermont	$125	$35	Annual report fee.
37	Kansas	$160	$50	Annual report fee.
38	Wisconsin	$130	$25	Annual report fee.
39	Maine	$175	$85	Annual report fee.
40	Illinois	$150	$75	Annual report fee.
41	New Hampshire	$100	$100	Annual report fee.
42	South Dakota	$150	$50	No state income tax.
43	Alabama	$200	$100+	Privilege tax (min $100).
44	New York	$200	$9	Very Expensive Publication ~$1000.
45	Alaska	$250	$100	Biennial report ($100).
46	Texas	$300	$0	Franchise tax only if rev > $1.23M.
47	Tennessee	$300	$300	Minimum franchise tax applies.
48	Nevada	$425	$350	Business license fee included.
49	Massachusetts	$500	$500	Very expensive to maintain.
50	D.C.	$99	$300	Biennial report ($300).

Frequently Asked Questions

What is the absolute cheapest state to form an LLC?

For initial setup, Kentucky ($40) is the cheapest. However, for long-term ownership, New Mexico is superior because it has a $50 setup fee but $0 annual fees and requires no annual reporting.

Which state has the lowest annual LLC fees?

Several states have $0 annual report fees. These include: New Mexico, Missouri, Mississippi, Arizona, Idaho, Ohio, and South Carolina. Among these, New Mexico and Missouri are the safest “zero annual fee” options without hidden publication costs.

Do I need to visit the US to open my LLC?

No. The entire process can be done online. You can hire a Registered Agent to receive your mail, file your Articles of Organization digitally, and use your LLC documents to open a US bank account via Fintechs.

Why is Delaware so popular if it is expensive?

Delaware is popular for startups planning to raise Venture Capital (VC) funding because of its specific court system. For a regular small business or freelancer, Delaware is often too expensive due to the $300 annual franchise tax.

Is Texas a good state for foreign LLCs?

Texas is excellent if you plan to do significant business. While the filing fee is high ($300), there is no annual fee unless your revenue exceeds roughly $1.23 million. See our Texas LLC Guide for more.