Core Insights Review · Landlord Compliance Guide · Verified July 2026
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, and Massachusetts charges $500 to form plus $500 every year after. The table below shows verified 2026 total first-year LLC costs across all 50 states, based on Secretary of State and state revenue department 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 roughly $100–$300/year. For landlords, the true cost is Year 1 total = filing fee + annual report/franchise tax + registered agent — and that number varies far more by state than most first-time filers expect.
In This Article
1. Full 50-State LLC Cost Table (2026)
Alabama → Georgia
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Alabama | 200 | 10 | 125 | 335 |
| Alaska | 250 | 100 | 125 | 475 |
| Arizona | 50 | 0 | 125 | 175 |
| Arkansas | 45 | 150 | 125 | 320 |
| California | 70 | 800 | 125 | 995 |
| Colorado | 50 | 10 | 125 | 185 |
| Connecticut | 120 | 80 | 125 | 325 |
| Delaware | 90 | 300 | 125 | 515 |
| Florida | 125 | 138.75 | 125 | 388.75 |
| Georgia | 100 | 50 | 125 | 275 |
Sources (verified 2026): Alabama Secretary of State, Alaska Division of Corporations, Arizona Corporation Commission, Arkansas Secretary of State, California Franchise Tax Board, Colorado Secretary of State, Connecticut Secretary of the State, Delaware Division of Corporations, Florida Sunbiz, Georgia Secretary of State.
Hawaii → Maryland
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Hawaii | 50 | 15 | 125 | 190 |
| Idaho | 100 | 0 | 125 | 225 |
| Illinois | 150 | 75 | 125 | 350 |
| Indiana | 95 | 32 | 125 | 252 |
| Iowa | 50 | 60 | 125 | 235 |
| Kansas | 160 | 55 | 125 | 340 |
| Kentucky | 40 | 15 | 125 | 180 |
| Louisiana | 100 | 35 | 125 | 260 |
| Maine | 175 | 85 | 125 | 385 |
| Maryland | 100 | 300 | 125 | 525 |
Sources (verified 2026): Hawaii DCCA, Idaho Secretary of State, Illinois Secretary of State, Indiana Secretary of State, Iowa Secretary of State, Kansas Secretary of State, Kentucky Secretary of State, Louisiana Secretary of State, Maine Secretary of State, Maryland Department of Assessments and Taxation.
Massachusetts → New Jersey
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| Massachusetts | 500 | 500 | 125 | 1,125 |
| Michigan | 50 | 25 | 125 | 200 |
| Minnesota | 155 | 0 | 125 | 280 |
| Mississippi | 50 | 0 | 125 | 175 |
| Missouri | 50 | 0 | 125 | 175 |
| Montana | 70 | 20 | 125 | 215 |
| Nebraska | 100 | 10 | 125 | 235 |
| Nevada | 425 | 350 | 125 | 900 |
| New Hampshire | 100 | 100 | 125 | 325 |
| New Jersey | 125 | 75 | 125 | 325 |
Sources (verified 2026): Massachusetts Secretary of the Commonwealth, Michigan LARA, Minnesota Secretary of State, Mississippi Secretary of State, Missouri Secretary of State, Montana Secretary of State, Nebraska Secretary of State, Nevada Secretary of State, New Hampshire Secretary of State, New Jersey Division of Revenue.
New Mexico → South Carolina
| State | Filing Fee ($) | Annual Report ($) | Registered Agent ($/yr) | Total Year 1 ($) |
|---|---|---|---|---|
| New Mexico | 50 | 0 | 125 | 175 |
| New York | 200 | 9 (biennial) | 125 | 334 |
| North Carolina | 125 | 200 | 125 | 450 |
| North Dakota | 135 | 50 | 125 | 310 |
| Ohio | 99 | 0 | 125 | 224 |
| Oklahoma | 100 | 25 | 125 | 250 |
| Oregon | 100 | 100 | 125 | 325 |
| Pennsylvania | 125 | 0 | 125 | 250 |
| Rhode Island | 150 | 50 | 125 | 325 |
| South Carolina | 110 | 0 | 125 | 235 |
Sources (verified 2026): New Mexico Secretary of State, New York Department of State, North Carolina Secretary of State, North Dakota Secretary of State, Ohio Secretary of State, Oklahoma Secretary of State, Oregon Secretary of State, Pennsylvania Department of State, Rhode Island Secretary of State, South Carolina Secretary of State.
South Dakota → Wyoming
| State | Filing Fee ($) | 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 Secretary of State, Tennessee Secretary of State, Texas Comptroller of Public Accounts, Utah Division of Corporations, Vermont Secretary of State, Virginia SCC, Washington Secretary of State, West Virginia Secretary of State, Wisconsin Department of Financial Institutions, Wyoming Secretary of State.
2. Where the Money Actually Goes: 10 Most & Least Expensive States
Once you line every state up by total Year 1 cost, two things jump out: a handful of states with high recurring franchise taxes or annual reports dominate the expensive end, while the cheapest states cluster tightly around $175–$200 — almost entirely driven by the $125 registered-agent fee rather than the state's own charges.
Ranking based on the 50-state Year 1 totals in the table above. Massachusetts and California lead on recurring fees ($500 and $800/year respectively); Nevada's total is driven by its $200 business-license plus $150 annual-list fee rather than the LLC filing itself.
3. Anatomy of a Year 1 Bill: 5 States Compared
The same $995 or $425 total can be built from very different pieces. California's bill is almost entirely the $800 franchise tax; Texas has no annual report fee at all below its revenue threshold; Wyoming spreads its cost evenly across a modest filing fee and annual report; Delaware skips the annual report entirely in favor of a flat $300 tax; and Massachusetts simply charges $500 twice.
4. 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 a flat $300 annual tax (due June 1) and file no separate annual report.
- Texas franchise tax may be $0 if revenue is below the no-tax-due threshold.
- Registered agent services typically range from $100–$300 annually depending on provider.
5. Regional Cost Comparison
Averaging the Year 1 totals from the full table by U.S. Census region shows the Northeast running well above every other part of the country — driven mainly by Massachusetts, Maine, and New York's publication requirement — while the Midwest is the most affordable region on average.
Simple average of Year 1 totals across the states in each U.S. Census region, calculated from the full 50-state table above (not weighted by population or number of LLCs formed).
6. 5-Year LLC Cost Comparison (Landlords)
| State | Year 1 ($) | 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 (registered agent fee excluded from the recurring figure above; add ~$125/yr if using a paid agent).
California's recurring $800 franchise tax compounds fast: over 5 years it costs nearly 10x Texas's total and almost 3x Delaware's, even though Delaware's Year 1 fee was higher than Texas's.
7. Key Takeaways 2026
- California ($995) and Massachusetts ($1,125) are the most expensive Year 1 states due to high recurring taxes.
- New Mexico, Missouri, Mississippi, and Arizona remain the lowest-cost states, all landing at $175 with no annual reporting fee.
- Registered agent cost is effectively mandatory for most landlords and averages $100–$150/year across every state.
- Filing fees average roughly $130 nationwide, but total costs vary far more due to annual obligations than the initial filing fee.
- The Northeast is the most expensive region to form in on average ($409), while the Midwest is the cheapest ($267).
- Over a 5-year hold, California's franchise tax alone ($4,000+) can dwarf what a Texas or Wyoming LLC pays in total — worth modeling before you pick a formation state.
8. FAQs
1. What is the cheapest state to form an LLC for rental property?
States like New Mexico, Missouri, Mississippi, and Arizona have low filing fees and no annual reports, which 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, ensuring 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 — as the 5-year comparison above shows.
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 — this article is informational only and not tax or legal advice.
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
➡️ Read the Related Post: Housing Market Forecast 2026, 2027, 2028 in the United States
9. Sources
IRS (irs.gov)
Nolo (nolo.com)
California Franchise Tax Board (ftb.ca.gov)
Delaware Division of Corporations (corp.delaware.gov)
New York Department of State (dos.ny.gov)
Alabama Secretary of State
Alaska Division of Corporations
Arizona Corporation Commission
Arkansas Secretary of State
Colorado Secretary of State
Connecticut Secretary of the State
Florida Sunbiz (sunbiz.org)
Georgia Secretary of State
Hawaii DCCA
Idaho Secretary of State
Illinois Secretary of State
Indiana Secretary of State
Iowa Secretary of State
Kansas Secretary of State
Kentucky Secretary of State
Louisiana Secretary of State
Maine Secretary of State
Maryland Department of Assessments and Taxation
Massachusetts Secretary of the Commonwealth
Michigan LARA
Minnesota Secretary of State
Mississippi Secretary of State
Missouri Secretary of State
Montana Secretary of State
Nebraska Secretary of State
Nevada Secretary of State
New Hampshire Secretary of State
New Jersey Division of Revenue
New Mexico Secretary of State
North Carolina Secretary of State
North Dakota Secretary of State
Ohio Secretary of State
Oklahoma Secretary of State
Oregon Secretary of State
Pennsylvania Department of State
Rhode Island Secretary of State
South Carolina Secretary of State
South Dakota Secretary of State
Tennessee Secretary of State
Texas Comptroller of Public Accounts
Utah Division of Corporations
Vermont Secretary of State
Virginia SCC
Washington Secretary of State
West Virginia Secretary of State
Wisconsin Department of Financial Institutions
Wyoming Secretary of State
Core Insights Review contributors publish research-based analysis and editorial insights on commercial real estate, PropTech, smart infrastructure, sustainable construction, industrial real estate, and emerging technologies shaping the future of the built environment.
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