LLC cost for rental property 2026 — The $800 mistake many landlords make:
Filing fees as low as $50 are often cited online, but states like California impose an $800 minimum franchise tax in the first year. The table below shows verified 2026 total first-year LLC costs across all 50 states based on Secretary of State data.
Forming an LLC for rental property in 2026 typically costs between $40 and $500 upfront, plus $0–$800 annually depending on the state, with registered agent services adding $100–$400/year. For landlords, the true cost is Year 1 total = filing fee + annual report + registered agent, which varies widely by state.
Full 50-State LLC Cost Table (2026)
Alabama → Georgia
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Alabama | 200 | 10 | 125 | 335 |
| Alaska | 250 | 100 | 125 | 475 |
| Arizona | 50 | 0 | 125 | 175 |
| Arkansas | 45 | 150 | 125 | 320 |
| California | 70 | 800 | 125 | 995 |
| Colorado | 50 | 10 | 125 | 185 |
| Connecticut | 120 | 80 | 125 | 325 |
| Delaware | 90 | 300 | 125 | 515 |
| Florida | 125 | 138.75 | 125 | 388.75 |
| Georgia | 100 | 50 | 125 | 275 |
Sources (verified 2026): Alabama Secretary of State (alabama.gov), Alaska (alaska.gov), Arizona Corporation Commission (azcc.gov), Arkansas (arkansas.gov), California Franchise Tax Board (ftb.ca.gov), Colorado (colorado.gov), Connecticut (ct.gov), Delaware Division of Corporations (delaware.gov), Florida Sunbiz (sunbiz.org), Georgia (georgia.gov)
Hawaii → Maryland
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Hawaii | 50 | 15 | 125 | 190 |
| Idaho | 100 | 0 | 125 | 225 |
| Illinois | 150 | 75 | 125 | 350 |
| Indiana | 95 | 32 | 125 | 252 |
| Iowa | 50 | 60 | 125 | 235 |
| Kansas | 160 | 55 | 125 | 340 |
| Kentucky | 40 | 15 | 125 | 180 |
| Louisiana | 100 | 35 | 125 | 260 |
| Maine | 175 | 85 | 125 | 385 |
| Maryland | 100 | 300 | 125 | 525 |
Sources (verified 2026): Hawaii (hawaii.gov), Idaho (sos.idaho.gov), Illinois (cyberdriveillinois.com), Indiana (in.gov), Iowa (iowa.gov), Kansas (kansas.gov), Kentucky (sos.ky.gov), Louisiana (louisiana.gov), Maine (maine.gov), Maryland (maryland.gov)
Massachusetts → New Jersey
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Massachusetts | 500 | 500 | 125 | 1,125 |
| Michigan | 50 | 25 | 125 | 200 |
| Minnesota | 155 | 0 | 125 | 280 |
| Mississippi | 50 | 0 | 125 | 175 |
| Missouri | 50 | 0 | 125 | 175 |
| Montana | 70 | 20 | 125 | 215 |
| Nebraska | 100 | 10 | 125 | 235 |
| Nevada | 425 | 350 | 125 | 900 |
| New Hampshire | 100 | 100 | 125 | 325 |
| New Jersey | 125 | 75 | 125 | 325 |
Sources (verified 2026): Massachusetts (mass.gov), Michigan (michigan.gov), Minnesota (mn.gov), Mississippi (sos.ms.gov), Missouri (sos.mo.gov), Montana (mt.gov), Nebraska (nebraska.gov), Nevada (nvsos.gov), New Hampshire (nh.gov), New Jersey (nj.gov)
New Mexico → South Carolina
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| New Mexico | 50 | 0 | 125 | 175 |
| New York | 200 | 9 (biennial) | 125 | 334 |
| North Carolina | 125 | 200 | 125 | 450 |
| North Dakota | 135 | 50 | 125 | 310 |
| Ohio | 99 | 0 | 125 | 224 |
| Oklahoma | 100 | 25 | 125 | 250 |
| Oregon | 100 | 100 | 125 | 325 |
| Pennsylvania | 125 | 0 | 125 | 250 |
| Rhode Island | 150 | 50 | 125 | 325 |
| South Carolina | 110 | 0 | 125 | 235 |
Sources (verified 2026): New Mexico (nm.gov), New York Department of State (dos.ny.gov), North Carolina (nc.gov), North Dakota (nd.gov), Ohio (ohio.gov), Oklahoma (oklahoma.gov), Oregon (oregon.gov), Pennsylvania (pa.gov), Rhode Island (sos.ri.gov), South Carolina (sc.gov)
South Dakota → Wyoming
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| South Dakota | 150 | 50 | 125 | 325 |
| Tennessee | 300 | 300 | 125 | 725 |
| Texas | 300 | 0* | 125 | 425 |
| Utah | 54 | 20 | 125 | 199 |
| Vermont | 125 | 35 | 125 | 285 |
| Virginia | 100 | 50 | 125 | 275 |
| Washington | 200 | 60 | 125 | 385 |
| West Virginia | 100 | 25 | 125 | 250 |
| Wisconsin | 130 | 25 | 125 | 280 |
| Wyoming | 100 | 60 | 125 | 285 |
Sources (verified 2026): South Dakota (sd.gov), Tennessee (tn.gov), Texas Comptroller (comptroller.texas.gov), Utah (utah.gov), Vermont (vermont.gov), Virginia (scc.virginia.gov), Washington (wa.gov), West Virginia (wv.gov), Wisconsin (wi.gov), Wyoming (wyoming.gov)
State-Specific Cost Notes (2026)
- New York requires newspaper publication: approximately $600–$2,000 (one-time, varies by county).
- California imposes an $800 minimum franchise tax, due by the 15th day of the 4th month after formation.
- Delaware LLCs pay $300 annual franchise tax; no annual report required.
- Texas franchise tax may be $0 if revenue is below the threshold.
- Registered agent services typically range from $100–$300 annually depending on provider.
5-Year LLC Cost Comparison (Landlords)
| State | Year 1 ($) | Annual (Year 2–5) ($) | 5-Year Total ($) |
|---|---|---|---|
| California | 995 | 800 | 4,195 |
| Texas | 425 | 0 | 425 |
| Wyoming | 285 | 60 | 525 |
| Delaware | 390 | 300 | 1,590 |
| Florida | 388.75 | 138.75 | 943.75 |
Estimates based on standard compliance costs only.
Key Takeaways 2026
- California ($995) and Massachusetts ($1,125) are the most expensive Year 1 states due to high recurring taxes.
- New Mexico, Missouri, and Mississippi remain the lowest-cost states with no annual reporting fees.
- Registered agent cost is effectively mandatory for most landlords and averages $100–$150/year.
- Filing fees average ~$130 nationwide, but total costs vary significantly due to annual obligations.
- States like Delaware and Nevada carry higher long-term costs despite business-friendly reputations.
FAQs
1. What is the cheapest state to form an LLC for rental property?
States like New Mexico, Missouri, and Mississippi have low filing fees and no annual reports. This keeps first-year costs minimal. However, landlords must still comply with foreign registration rules if the rental property is located in another state.
2. Do I need an LLC in the same state as my rental property?
Yes. If you form an LLC in a different state, you must register as a foreign LLC where the property is located. This results in duplicate filing fees and ongoing compliance costs in both states.
3. Is a registered agent mandatory for an LLC?
Yes. Every state requires an LLC to maintain a registered agent with a physical address in that state. This ensures legal notices and service of process can be reliably delivered.
4. What ongoing costs should landlords expect?
Landlords should expect annual report fees, franchise taxes where applicable, and registered agent fees. These recurring costs typically exceed the initial filing fee over time.
5. Are LLC costs tax deductible for rental property owners?
Most LLC-related expenses, including filing fees and registered agent services, are generally deductible as business expenses. Landlords should confirm treatment under IRS rules or consult a qualified tax professional.
Author: Research team at Core Insights. Data compiled from all 50 Secretary of State websites and IRS guidance. This content is for informational purposes only and does not constitute legal or tax advice.
➡️ Read the Related Post: Commercial Asset Management Costs 2026
Sources
IRS (irs.gov)
Nolo (nolo.com)
California Franchise Tax Board (ftb.ca.gov)
Delaware Division of Corporations (delaware.gov)
New York Department of State (dos.ny.gov)
Alabama (alabama.gov)
Alaska (alaska.gov)
Arizona Corporation Commission (azcc.gov)
Arkansas (arkansas.gov)
Colorado (colorado.gov)
Connecticut (ct.gov)
Florida Sunbiz (sunbiz.org)
Georgia (georgia.gov)
Hawaii (hawaii.gov)
Idaho (sos.idaho.gov)
Illinois (cyberdriveillinois.com)
Indiana (in.gov)
Iowa (iowa.gov)
Kansas (kansas.gov)
Kentucky (sos.ky.gov)
Louisiana (louisiana.gov)
Maine (maine.gov)
Maryland (maryland.gov)
Massachusetts (mass.gov)
Michigan (michigan.gov)
Minnesota (mn.gov)
Mississippi (sos.ms.gov)
Missouri (sos.mo.gov)
Montana (mt.gov)
Nebraska (nebraska.gov)
Nevada (nvsos.gov)
New Hampshire (nh.gov)
New Jersey (nj.gov)
New Mexico (nm.gov)
North Carolina (nc.gov)
North Dakota (nd.gov)
Ohio (ohio.gov)
Oklahoma (oklahoma.gov)
Oregon (oregon.gov)
Pennsylvania (pa.gov)
Rhode Island (sos.ri.gov)
South Carolina (sc.gov)
South Dakota (sd.gov)
Tennessee (tn.gov)
Texas Comptroller (comptroller.texas.gov)
Utah (utah.gov)
Vermont (vermont.gov)
Virginia (scc.virginia.gov)
Washington (wa.gov)
West Virginia (wv.gov)
Wisconsin (wi.gov)
Wyoming (wyoming.gov)
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