LLC vs Corporation Costs by State 2026: 50-State Guide

Should you form an LLC or a corporation—and does one cost more in your state?

The answer depends partly on where you form the business.

In some states, LLCs and corporations have the same basic formation fee. In others, one structure can cost substantially more to create. Filing method, authorized shares, number of LLC members and required companion filings can also change the amount.

But the formation fee is only the beginning.

A business may also face:

Annual or biennial reports
Franchise taxes
Minimum taxes
Business-license fees
Publication requirements
Registered-agent costs
State-specific compliance requirements

And an LLC and corporation differ in ownership, governance, taxation and fundraising regardless of what they cost to file.

StartupWerx compared the standard state filing costs of domestic LLCs and domestic for-profit corporations across all 50 states to answer two separate questions:

What does each entity cost to form?

And:

Where can recurring state requirements materially change the long-term comparison?

Last reviewed: September 2026

Data note: State fees change. The figures below are intended as a 2026 comparison of standard domestic formation filing costs. Where online and paper fees differ, the table identifies the online or lower standard electronic filing amount when that distinction materially affects the comparison. Optional expedited processing, professional services, commercial registered-agent services and optional certificates or copies are excluded. Some corporation fees vary according to authorized shares, par value or other factors. Always verify the current amount with the applicable state before filing.

LLC vs Corporation Costs at a Glance

An LLC is not automatically cheaper than a corporation.

Across the states, several patterns appear:

Some states charge the same basic formation fee for LLCs and corporations.
Some states charge more to form an LLC.
Some states charge more to form a corporation.
Some states use variable corporation fees based on stock structure.
Some states impose required charges beyond the basic formation document.
Some states make the long-term comparison very different from the initial filing comparison.

The useful question therefore isn’t simply:

Which entity is cheaper?

It is:

What will each structure cost to form and maintain in the state where the business operates?

LLC vs Corporation Formation Costs by State

The table below compares standard domestic state formation filing costs.

State	LLC Formation Fee	Corporation Formation Fee	Initial Cost Comparison
Alabama	$200	$100	LLC +$100
Alaska	$250	$250	Same
Arizona	$50	$60	Corporation +$10
Arkansas	$45 online	$50	Corporation +$5
California	$70	$100	Corporation +$30
Colorado	$50	$50	Same
Connecticut	$120	$250	Corporation +$130
Delaware	$110	$109 minimum*	Approximately same
Florida	$125**	$70**	LLC +$55
Georgia	$100 online	$100 online	Same
Hawaii	$50	$50	Same
Idaho	$100 online	$100 online	Same
Illinois	$150	$150 minimum*	Approximately same
Indiana	$85 online	$85 online	Same
Iowa	$50	$50	Same
Kansas	$85 online	$85 online	Same
Kentucky	$40	$40***	Approximately same
Louisiana	$75	$60	LLC +$15
Maine	$175	$145	LLC +$30
Maryland	$100	$120	Corporation +$20
Massachusetts	$500	$275 minimum*	LLC +$225 or more
Michigan	$50	$60 minimum*	Corporation +$10 or more
Minnesota	$155 online	$155 online	Same
Mississippi	$50	$50	Same
Missouri	$50 online	$58 minimum*	Corporation +$8 or more
Montana	$35	$35	Same
Nebraska	$100 online	$100 online	Same
Nevada	$425 required initial charges**	$725 required initial charges**	Corporation +$300
New Hampshire	$100	$100	Same
New Jersey	$125	$125	Same
New Mexico	$50	$100 minimum*	Corporation +$50 or more
New York	$200****	$125	LLC +$75 before publication
North Carolina	$125	$125	Same
North Dakota	$135	$100	LLC +$35
Ohio	$99	$99	Same
Oklahoma	$100	$50 minimum*	LLC +$50 or less
Oregon	$100	$100	Same
Pennsylvania	$125	$125	Same
Rhode Island	$150	$230	Corporation +$80
South Carolina	$110	$135*****	Corporation +$25
South Dakota	$150 online	$165	Corporation +$15
Tennessee	$300 minimum******	$100	LLC +$200 minimum
Texas	$300	$300	Same
Utah	$59	$59	Same
Vermont	$155	$155	Same
Virginia	$100	$75 minimum*	LLC +$25 or less
Washington	$200 online	$200 online	Same
West Virginia	$100	$100	Same
Wisconsin	$130 online	$100	LLC +$30
Wyoming	$100	$100	Same

* Corporation formation charges can vary based on authorized shares, capital structure or other state-specific calculations.

** Florida figures include required registered-agent designation charges. Nevada figures include the required initial list and state business-license charges associated with starting the entity, not merely the base articles filing fee.

*** Kentucky corporations may have additional organization-tax considerations beyond the basic filing charge.

**** New York LLCs are also subject to publication requirements that can materially increase the practical formation cost.

***** South Carolina’s corporation figure includes the state filing and associated initial Department of Revenue filing reflected in the standard formation process.

****** Tennessee LLC filing fees are based on the number of members, subject to state minimum and maximum charges.

Important: This is a comparison tool, not a filing quote. State agencies can change fees and filing procedures. Verify current requirements before submitting a formation filing.

What the 50-State Comparison Shows

The most important finding is straightforward:

There is no national rule that an LLC costs less to form than a corporation.

Some states make the two structures cost-neutral at formation.

Others create meaningful differences.

And in several states, the basic formation charge doesn’t tell you enough to understand the actual cost.

States With the Same or Similar Initial Cost

Examples include:

Alaska
Colorado
Georgia
Hawaii
Idaho
Indiana
Iowa
Kansas
Minnesota
Montana
Nebraska
New Hampshire
New Jersey
North Carolina
Ohio
Oregon
Pennsylvania
Texas
Utah
Vermont
Washington
West Virginia
Wyoming

In these states, the initial filing fee provides little or no reason by itself to prefer one entity type.

That pushes the decision toward:

Governance
Ownership
Tax treatment
Investors
Equity plans
Recurring state costs
Administrative requirements

States Where the LLC Has a Higher Initial Cost

Examples include:

Alabama
Florida
Louisiana
Maine
Massachusetts
New York
North Dakota
Oklahoma
Tennessee
Virginia
Wisconsin

The size of the difference varies significantly.

States Where the Corporation Has a Higher Initial Cost

Examples include:

Arizona
California
Connecticut
Maryland
New Mexico
Rhode Island
South Dakota

Again, initial filing cost is only one layer of the decision.

Some of the Largest Initial Cost Differences

Several states illustrate why a 50-state comparison is useful.

Nevada

Nevada’s base articles fee alone doesn’t show the practical initial state cost.

A Nevada LLC generally combines:

$75 Articles of Organization
$150 initial list
$200 state business license

That produces approximately:

$425 in required initial state charges

A corporation generally combines:

$75 minimum articles filing charge
$150 initial list
$500 state business license

That produces approximately:

$725 in required initial state charges

The resulting difference is approximately:

Corporation +$300

The business-license difference also continues annually unless an exemption applies.

Massachusetts

Massachusetts has one of the most significant straightforward LLC-versus-corporation filing differences.

The standard comparison is approximately:

LLC: $500
Corporation: $275 minimum

Initial difference:

LLC +$225

But Massachusetts becomes even more interesting when recurring reports are considered.

A Massachusetts LLC must file an annual report with a $500 filing fee.

A domestic profit corporation’s annual report costs $100 when filed electronically or $125 using the standard non-electronic filing method.

That means the initial $225 difference can expand substantially over time.

Connecticut

The comparison is approximately:

LLC: $120
Corporation: $250

Initial difference:

Corporation +$130

This is an example of a state where the corporation starts with the higher filing charge.

Alabama

The standard formation comparison is approximately:

LLC: $200
Corporation: $100

Initial difference:

LLC +$100

This is also why relying on older generic 50-state charts can be risky: state fee structures and the way fees are presented change.

Rhode Island

Rhode Island’s Department of State currently lists:

LLC initial filing: $150
Corporation initial filing: $230

Initial difference:

Corporation +$80

But both structures also face recurring state requirements, so the $80 formation difference shouldn’t be viewed in isolation.

New York

New York’s basic state filing comparison is:

LLC: $200
Corporation: $125

Initial difference:

LLC +$75

But the LLC is also subject to New York’s publication requirement.

Actual publication costs depend heavily on where the LLC’s office is located and the newspapers involved.

That makes New York a particularly strong example of why:

Formation filing fee ≠ total formation cost.

Formation Cost Is Only Layer One

A state can make one entity cheaper to form and still make it more expensive to maintain.

Recurring requirements can include:

Annual reports
Biennial reports
Franchise taxes
Annual entity taxes
Business-license renewals
Minimum taxes
Annual lists
Business privilege taxes
Publication-related costs
State-specific compliance filings

Over five years, these expenses can matter much more than a $25 or $50 formation-fee difference.

StartupWerx 5-Year State Cost Framework

StartupWerx uses the following screening formula:

Formation Cost + Required Recurring State Entity Costs Over Five Years = 5-Year State Cost Exposure

The formula deliberately focuses on identifiable state entity-maintenance costs.

It does not automatically include:

Income tax
Payroll tax
Sales tax
Registered-agent services
Accounting
Legal fees
Tax preparation
Optional filings
Local business licenses

Those expenses depend more heavily on the specific business.

Why We Don’t Publish a Single 5-Year Number for Every State

A simple 50-state five-year table sounds useful.

It can also be misleading.

Consider four different state systems.

Washington

Washington treats profit business entities—including LLCs and corporations—the same for its standard annual report.

The current annual report filing fee is:

$70

That makes a simple filing-cost comparison relatively clean.

Massachusetts

Massachusetts uses materially different annual-report fees for LLCs and corporations.

That also creates a relatively clean comparison.

Delaware

Delaware is different.

LLCs pay a specified annual state tax.

Corporations file an annual report and pay franchise tax, but the franchise tax can vary based on the corporation’s authorized shares or assumed par value capital.

A single universal five-year corporation number would therefore require making assumptions about the corporation’s stock structure.

California

California combines Secretary of State filing requirements with separate tax obligations administered through the tax system.

A simple filing-fee table would not capture the actual entity cost.

For that reason, StartupWerx separates:

Clean fixed-cost comparisons

from:

Variable-cost states requiring business-specific calculations.

That produces a more useful model than pretending every state can be reduced to one comparable number.

Selected 5-Year State Cost Comparisons

The following examples illustrate states where meaningful recurring state costs can be compared without pretending that every possible tax or business-specific charge is included.

Washington

Standard online formation:

LLC: $200
Corporation: $200

Annual report:

LLC: $70
Corporation: $70

Using five annual reports:

LLC

$200 + ($70 × 5) = $550

Corporation

$200 + ($70 × 5) = $550

5-year difference: $0

For Washington, basic Secretary of State filing cost does not create a meaningful entity advantage.

Massachusetts

Formation:

LLC: $500
Corporation: $275 minimum

Annual report:

LLC: $500
Corporation: $100 electronically

Using five annual reports:

LLC

$500 + ($500 × 5) = $3,000

Corporation

$275 + ($100 × 5) = $775

Illustrative 5-year filing difference: LLC +$2,225

This calculation compares the identified formation and annual-report filing charges only.

It does not include taxes or other business-specific obligations.

This is exactly why a small initial filing difference can become much larger over time.

Rhode Island

Formation:

LLC: $150
Corporation: $230

Annual report:

LLC: $50
Corporation: $50

Rhode Island also imposes a minimum annual tax on for-profit entities, including LLCs and corporations.

Because that minimum applies to both structures, it does not erase the initial formation difference between them.

Using formation and five $50 annual reports:

LLC filing exposure

$150 + ($50 × 5) = $400

Corporation filing exposure

$230 + ($50 × 5) = $480

5-year filing difference: Corporation +$80

The state’s minimum annual tax would add materially to both totals and should be included in an actual business budget.

Nevada

Initial required state charges:

LLC

Articles: $75
Initial list: $150
State business license: $200

Total:

$425

Corporation

Articles: $75 minimum
Initial list: $150
State business license: $500

Total:

$725

The state business license is also renewed annually.

That means Nevada’s corporation-versus-LLC cost difference is not merely a first-year issue.

A corporation generally continues to face a state business-license charge that is $300 higher than the charge for other covered business types.

Actual recurring totals should also account for annual-list fees and any other applicable requirements.

Delaware Shows Why Fixed 5-Year Tables Can Fail

Delaware deserves its own treatment.

Delaware LLC

A Delaware LLC pays an annual state tax.

As of the current 2026 rules, the statutory annual LLC tax is:

$400

The LLC does not file the same annual report required of a domestic corporation.

Delaware Corporation

A non-exempt domestic corporation generally files an annual report and pays:

$50 annual report filing fee
Franchise tax

The minimum franchise tax depends on the calculation method.

Under the Authorized Shares Method, the minimum is currently:

$175

Under the Assumed Par Value Capital Method, the minimum is:

$400

The amount can rise substantially based on the corporation’s capital structure.

That means publishing one number such as:

“A Delaware corporation costs $X over five years”

without specifying its share structure and franchise-tax method would create false precision.

For Delaware, the correct comparison is a formula, not a universal total.

Delaware LLC Screening Formula

Formation Fee + ($400 × years of annual tax)

Delaware Corporation Screening Formula

Formation Fee + [(Annual Report Fee + Applicable Franchise Tax) × years]

The applicable franchise tax must be calculated for the specific corporation.

Florida: Cheaper to Form a Corporation, Different Annual Report Cost

Florida provides another useful example.

LLC Formation

Florida’s required formation charges include:

Articles of Organization: $100
Registered-agent designation: $25

Required state total:

$125

Profit Corporation Formation

Required state charges include:

Articles filing: $35
Registered-agent designation: $35

Required state total:

$70

Initial difference:

LLC +$55

But the standard annual report costs differ:

LLC: $138.75
Profit corporation: $150

The corporation is therefore cheaper at formation but has a slightly higher standard annual-report charge.

This demonstrates why the initial fee and recurring fee should always be examined separately.

Wyoming: Cost-Neutral at Formation

Wyoming provides a different pattern.

The Secretary of State lists a standard formation charge of:

LLC: $100
Profit corporation: $100

There is no initial filing-cost advantage.

Wyoming also applies annual report/license-tax requirements to covered entities.

In a state like Wyoming, the LLC-versus-corporation decision should therefore be driven primarily by factors other than the initial filing fee.

Texas: Same Initial Filing Fee

Texas charges:

Domestic LLC: $300
Domestic for-profit corporation: $300

That makes the initial state filing cost neutral.

But equal filing fees do not make the entities equivalent.

The structures can still differ in:

Ownership
Governance
Federal tax treatment
Equity issuance
Investors
Administrative requirements

California: Filing Fee Isn’t Total Entity Cost

California’s standard Secretary of State formation charges include approximately:

LLC: $70
Corporation: $100

At first glance, the LLC appears $30 cheaper.

But California demonstrates why Secretary of State filing fees and total entity costs must be kept separate.

LLCs and corporations have continuing filing requirements, and California’s tax system can impose additional entity-level costs.

A founder should therefore never interpret the $70-versus-$100 formation comparison as the complete cost difference between the structures.

New York: Publication Changes the LLC Calculation

New York LLC formation demonstrates another cost category that does not fit neatly into a filing-fee table.

The state filing fee for Articles of Organization is:

$200

But newly formed LLCs generally must satisfy a publication requirement.

Publication cost can vary substantially depending on county and publication rates.

That means:

$200 is the filing fee—not necessarily the total practical cost of completing New York LLC formation requirements.

A corporation does not use the same LLC publication process.

StartupWerx LLC vs Corporation Cost Framework

StartupWerx recommends comparing entity costs in four layers.

Layer 1: Formation Cost

This includes state charges required to create the entity.

Examples:

Articles of Organization
Certificate of Organization
Articles of Incorporation
Certificate of Incorporation
Required initial lists
Required initial business-license charges

Layer 2: Recurring State Compliance

This may include:

Annual reports
Biennial reports
Annual lists
Franchise taxes
Annual entity taxes
Minimum taxes
Business-license renewals

Layer 3: Administrative Cost

This can include:

Registered-agent services
Accounting
Tax preparation
Legal support
Compliance management
Corporate recordkeeping

Layer 4: Structural Cost

These are costs created indirectly by the entity structure.

Examples can include:

Corporate governance
Board administration
Shareholder documentation
Equity issuance
Tax elections
Payroll requirements
More complex accounting

The resulting framework is:

Formation Cost + Recurring Compliance + Administration + Structural Requirements = Entity Cost Profile

LLC vs Corporation: Structural Differences

Cost matters, but it shouldn’t determine the entity choice by itself.

Factor	LLC	Corporation
Owners	Members	Shareholders
Management	Members or managers	Directors and officers
Ownership interests	Membership interests	Shares of stock
Governance	Generally flexible	More formal
Corporate stock	No	Yes
Outside equity investment	Possible but less standardized	Designed around share ownership
Default federal taxation	Usually pass-through	Generally corporate taxation
S corporation election	Potentially available if eligible	Potentially available if eligible
Formal governance	Generally less extensive	Generally more formal
State formation required	Yes	Yes
Limited liability	Generally yes	Generally yes

This table describes broad structural characteristics.

State law, tax elections and the circumstances of the business can change the details.

An LLC Is Not the Same Thing as an S Corporation

This distinction causes substantial confusion.

An LLC is a state-law business entity.

An S corporation is a federal tax election.

An eligible LLC may elect S corporation tax treatment.

An eligible corporation may also elect S corporation status.

The decision therefore isn’t necessarily:

LLC or S corporation?

A business may instead operate as:

LLC under state law + S corporation treatment for federal tax purposes

Whether that makes sense depends on the company’s income, payroll, ownership and tax circumstances.

When an LLC May Fit the Business

An LLC may be considered when founders value:

Flexible management
Fewer corporate formalities
Pass-through taxation by default in many cases
Liability protection
Straightforward ownership
A business not designed around issuing corporate stock

Common examples can include:

Consultants
Contractors
Local service businesses
Ecommerce businesses
Real estate businesses
Family businesses
Owner-operated companies

That does not mean every small business should automatically form an LLC.

When a Corporation May Fit the Business

A corporation may be considered when the business expects:

Multiple classes of stock
Institutional investors
Venture capital
Employee equity programs
Significant outside investment
Formal board governance
A future ownership structure built around transferable shares

Many venture-backed companies use corporations for reasons that have little to do with saving $50 or $100 on a filing.

The financing structure can matter much more than the initial state fee.

Don’t Choose a State Just Because Its Filing Fee Is Lower

Suppose your business operates in Washington but another state charges less to form an entity.

Forming in the cheaper state does not necessarily allow the company to avoid Washington requirements.

A company conducting business in another state may have to register there as a foreign entity.

That can create:

Another filing fee
Another registered-agent requirement
Additional annual reports
Additional compliance
Additional tax registrations

For many ordinary small businesses operating primarily in one state, forming where the business actually operates can therefore be simpler than selecting a state solely because its formation fee is lower.

Compare the Business Over Time

Consider a hypothetical state where both entities cost $100 to form.

LLC

Formation: $100
Annual state compliance: $50

Five-year screening total:

$350

Corporation

Formation: $100
Annual state compliance: $50

Five-year screening total:

$350

Based purely on these state charges, neither structure has a cost advantage.

The decision should then depend more heavily on:

Ownership
Tax treatment
Governance
Investors
Equity plans
Administrative requirements

Now consider a state where the recurring costs differ.

LLC

Formation: $500
Annual compliance: $500

Five-year screening total:

$3,000

Corporation

Formation: $275
Annual compliance: $100

Five-year screening total:

$775

Now the state filing structure creates a meaningful long-term difference.

That is why StartupWerx recommends comparing multi-year entity cost, not merely the initial filing charge.

StartupWerx 5-Year Entity Cost Formula

For fixed state charges, use:

Formation Fee + (Annual Recurring State Cost × 5) = Five-Year State Cost Exposure

For biennial filings:

Formation Fee + Applicable Biennial Filings During the Period = Five-Year State Cost Exposure

For variable charges:

Formation Fee + State-Specific Variable Cost Formula = Estimated Five-Year State Cost Exposure

This distinction matters.

A fixed $70 annual report and a share-based franchise tax should not be treated as if they were the same type of expense.

Why the Cheapest Entity Isn’t Automatically the Right Entity

Suppose an LLC costs $100 less to form.

That saving may be insignificant if the company plans to raise millions of dollars from institutional investors and needs a conventional corporate equity structure.

The reverse can also be true.

A small owner-operated service business may gain little from adopting a more formal corporate structure simply because the corporation happens to cost $25 less to file.

Entity choice should support the business model.

Cost is a factor—not the entire decision.

Questions to Ask Before Choosing an LLC or Corporation

1. Where Will the Business Actually Operate?

Start with the state where the company will conduct business.

2. Who Will Own the Business?

Consider the number and type of owners.

3. Will the Company Raise Outside Equity?

The answer may affect the usefulness of a corporate structure.

4. Will Employees Receive Equity?

Stock-option and equity-compensation plans may influence entity choice.

5. What Are the Recurring State Costs?

Don’t stop at the formation fee.

Calculate several years of required state costs when possible.

6. Are Any State Costs Variable?

Look for:

Share-based corporation fees
Franchise taxes
Asset-based charges
Member-based LLC fees
Revenue-based taxes

7. How Will the Entity Be Taxed?

State entity type and federal tax classification are related but separate decisions.

8. How Much Governance Complexity Makes Sense?

A small owner-operated company and a venture-backed technology company have very different governance needs.

9. Could the Company Need to Convert Later?

Businesses evolve.

A structure that works at launch may not be the structure used five years later.

A Better Way to Compare LLC vs Corporation Cost

Before choosing, create a simple entity-cost worksheet.

LLC

Formation

State formation fee: $_____
Required initial charges: $_____

Recurring

Annual/biennial report: $_____
Annual entity tax: $_____
State business license: $_____
Other required state charges: $_____

Five-Year State Cost

$_____

Corporation

Formation

State formation fee: $_____
Required initial charges: $_____

Recurring

Annual/biennial report: $_____
Franchise tax: $_____
State business license: $_____
Other required state charges: $_____

Five-Year State Cost

$_____

Then compare the financial result with the structural differences between the entities.

That gives you a much more useful decision framework than choosing whichever formation fee is lower.

Ready to Form Your Business?

Once you’ve compared the costs and structural differences, the next step is creating the business entity that fits your plans.

StartupWerx can help simplify the formation process.

Start your business →

Frequently Asked Questions

Is an LLC cheaper than a corporation?

Not always.

Some states charge the same basic formation fee for both structures. Some charge more for an LLC, while others charge more for a corporation.

Recurring state fees, taxes and other requirements can also change the long-term comparison.

How much does it cost to form an LLC?

State LLC formation fees vary substantially.

In the 2026 StartupWerx comparison, standard state filing charges range from relatively low-cost states such as Montana and Kentucky to substantially higher-cost states such as Massachusetts.

Some states also impose required charges beyond the basic formation filing.

How much does it cost to form a corporation?

Corporation formation fees also vary significantly.

Some states charge a flat amount, while others calculate at least part of the filing or ongoing cost using authorized shares, capital structure or similar factors.

Which costs more over five years, an LLC or corporation?

There is no universal answer.

In Washington, basic formation and annual-report filing costs are currently the same for LLCs and profit corporations.

In Massachusetts, LLC annual-report costs are substantially higher.

In Delaware, the corporation comparison depends partly on the applicable franchise-tax calculation.

The correct answer therefore depends on the state and the specific entity.

What is the cheapest state to form an LLC?

Several states have relatively low LLC formation fees, but the lowest filing fee does not necessarily identify the lowest-cost state for operating a business.

Recurring requirements, taxes, publication and foreign qualification can matter more than the initial fee.

What is the cheapest state to form a corporation?

Corporation filing fees vary, and some states use share-based or other variable structures.

The formation fee should be considered together with annual reports, franchise taxes and the state where the company will actually conduct business.

Does an LLC have less paperwork than a corporation?

LLCs generally have more flexible governance than corporations.

Corporations typically operate through shareholders, directors and officers and generally maintain more formal corporate records.

Exact requirements depend on state law and the circumstances of the company.

Can an LLC be taxed as an S corporation?

An eligible LLC can elect S corporation tax treatment if it meets federal requirements.

The LLC remains an LLC under state law while receiving S corporation tax treatment for applicable federal tax purposes.

Is an S corporation the same as a corporation?

Not exactly.

“S corporation” primarily describes a federal tax election.

Both eligible corporations and eligible LLCs may potentially elect S corporation treatment.

Is a C corporation a state business entity?

A corporation is created under state law.

“C corporation” commonly refers to a corporation taxed under the standard federal corporate tax regime rather than under an S corporation election.

Should a startup form an LLC or corporation?

That depends on the company’s ownership, financing strategy, tax circumstances, governance needs and long-term plans.

A company expecting institutional venture capital may have different structural needs from an owner-operated local business.

Should I form in Delaware because businesses incorporate there?

Not automatically.

Delaware is widely used for corporations, particularly companies with sophisticated equity and investment structures.

A business operating primarily in another state may still have to register there as a foreign entity, potentially creating additional fees and compliance requirements.

Do LLCs and corporations both provide liability protection?

Both structures generally create legal separation between the business and its owners, subject to applicable law and proper operation of the entity.

Liability protection can be affected by personal guarantees, misconduct, failure to maintain the entity appropriately and other circumstances.

Are state filing fees the total cost of forming a business?

No.

A business may also incur costs for:

Registered-agent services
Licenses
Permits
Tax registrations
Professional services
Annual reports
Franchise taxes
Business licenses
Publication requirements
Local registrations

The formation fee is only one component.

Sources and Methodology

StartupWerx compiled this comparison to help entrepreneurs understand how state formation and recurring entity costs can differ between domestic LLCs and domestic for-profit corporations.

Formation-Fee Methodology

For the 50-state table, StartupWerx compares standard state charges associated with filing the primary domestic formation document.

Depending on the state, that document may be called:

Articles of Organization
Certificate of Organization
Articles of Incorporation
Certificate of Incorporation
Certificate of Formation

Where a state publishes different online and paper filing charges, StartupWerx generally uses the standard electronic filing charge and labels it accordingly.

Required companion charges are included when omitting them would materially understate the amount required to establish the entity.

Nevada and Florida are examples.

Optional expedited processing, certified copies, certificates of status, professional services and commercial registered-agent services are excluded.

Five-Year Comparison Methodology

StartupWerx publishes illustrative multi-year calculations only when the underlying recurring charges can be compared without making unsupported assumptions.

Fixed annual-report fees are comparatively straightforward.

Variable charges are not.

Examples include:

Share-based franchise taxes
Asset-based charges
Revenue-based taxes
Member-based filing fees

When the cost depends on business-specific variables, StartupWerx provides the calculation framework instead of presenting a universal five-year number.

Important Limitations

State fees can change.

Corporation costs may depend on:

Authorized shares
Par value
Filing method
Capital structure
Assets
State tax classification

LLC costs may depend on:

Number of members
Filing method
Publication requirements
Revenue
State tax classification

Other costs may include:

Franchise taxes
Minimum taxes
Annual reports
Biennial reports
Business privilege taxes
State business licenses
Publication requirements

This guide should therefore be used for planning and comparison rather than as a substitute for a current state filing quote or legal or tax advice.

Primary Government Sources and Verification Resources

StartupWerx recommends confirming current formation and recurring fees with the Secretary of State, Department of State, Corporation Commission or equivalent filing agency in the applicable state immediately before filing.

Continue Building Your Business

Entity cost is only one part of deciding how to structure and launch a business.

For broader planning, see Form, Manage, and Grow a Small Business.

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Once you’ve decided which structure fits your business, StartupWerx can help you move from research to formation.

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Still Exploring Your Options?

If you’re still comparing business structures or deciding what kind of company to start, continue exploring before committing.

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Use StartupWerx to explore business ideas, formation options and the steps required to build your company.