The best state to form an LLC
For most owners, it's the state where the business operates. Here's what actual filings show about who forms where, and what it costs.
Who forms an LLC outside their state
17% of new Wyoming LLCs give a business address in another state, against 3% on average in the 7 other states that publish addresses, so Wyoming really does draw owners from elsewhere. That's a floor: many out-of-state owners list their registered agent's Wyoming address, which makes them look local. Delaware doesn't publish business addresses, so we can't measure it there.
Share of new domestic LLCs whose business address is out of state, among those with any address on file. Last 1 weeks of Wyoming filings (RecordWire coverage began October 2026).
Why your home state usually wins
If you form in Wyoming but run the business from, say, Florida, Florida treats you as a foreign LLC. You file there too ($125), pay Florida's annual report, and keep a registered agent in both states. The cheaper formation rarely makes up for paying twice.
Forming out of state can make sense when the business has no physical home (an online-only or holding company), when investors expect Delaware law, or when you want a state with no recurring fee. The cheapest state over five years is Montana at $35.
The 12 states we track, ranked by five-year state fees
| State | 5-year fees | New LLCs / week | Out-of-state owners | Still active at 1–2 yrs |
|---|---|---|---|---|
| Missouri | $50 | 927 | 4% | – |
| Idaho | $100 | 736 | 3% | – |
| Pennsylvania | $160 | 2,110 | – | – |
| Colorado | $175 | 3,137 | 6% | 54% |
| New York | $222.50 | 3,770 | – | – |
| Virginia | $350 | 2,654 | 2% | 66% |
| Wyoming | $402.40 | 4,670 | 17% | – |
| Connecticut | $520 | 1,099 | 3% | 86% |
| Oregon | $600 | 1,287 | 2% | – |
| Florida | $818.75 | 12,271 | 2% | 64% |
| Delaware | $2,110 | 4,311 | – | – |
| Massachusetts | $3,120 | 950 | – | – |
"Out-of-state owners": share of new domestic LLCs whose business address is in another state, among those with an address on file. "Still active": companies formed 12–24 months ago whose status is active today, where the state publishes it. All filing data from RecordWire. All states' fees →