the FigureNerd team · Last reviewed: · Methodology
Business Startup Cost Calculator
Pick your state and entity type. We break down exactly what it costs to launch legally in 2026: formation fees, registered agent, EIN, operating agreement, and first-year incidentals. No fluff.
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All 50 states
2026 fee data
DIY vs service comparison
Estimate Your Startup Costs
Fill in your setup choices. Results update instantly.
Entity Setup
State filing fees are one-time (at formation). Annual report fees are separate. CALEB-VERIFY Fees confirmed from SOS websites; verify current rates before filing.
LLC is the most common choice for small businesses. S-corp is a tax election applied after formation (usually as an LLC). C-corp is used for VC-funded startups.
More members means a more complex operating agreement. Multi-member LLCs are taxed as partnerships by default.
Compliance Services
Required in all 50 states. Using your home address is legal but puts it on public record and locks you to being available during business hours.
The IRS issues EINs free at IRS.gov. Expedited services are optional convenience. Most business owners can get an EIN in 15 minutes for free.
Required in many states; recommended everywhere. A solid template covers most single-member LLCs. Multi-member or complex structures benefit from attorney review.
CALEB-VERIFY BOI reporting requirements have been subject to court injunctions in 2024-2025. Confirm current status at FinCEN.gov before relying on this estimate.
First-Year Banking & Licensing
Mercury, Bluevine, and Relay offer free FDIC-insured business checking with no minimum balance. Traditional banks often require $1,000-$5,000 minimum.
Requirements vary by city and business type. Home-based service businesses often need only a basic home occupation permit.
Toggle the services you plan to set up in Year 1. Costs are mid-range estimates; actual prices vary by provider and plan.
Estimated total (Wyoming LLC, solo, mid-tier choices)
Fixed Formation
$399
One-time + recurring fixed costs
First-Year Incidentals
$800
Optional operational setup
DIY Route
$249
State fee + free RA + free EIN + free template
Via Hadassah Service
$349
State fee + RA service + EIN filing + templates included
Cost Breakdown by Category
Ready to make it official?
Form your Wyoming LLC for $100 + state fee
The cheapest state to form an LLC in the US. Wyoming has no state income tax, strong asset protection statutes, and anonymous ownership rules. Your registered agent keeps your home address off public record.
Affiliate disclosure: FigureNerd is affiliated with the formation service linked above. We earn a referral fee if you purchase. Our estimates are independent of this relationship.
Will an S-Corp election save you money?
If your net profit clears $40,000, an S-corp can eliminate thousands in self-employment tax. Run the math before you decide.
Operating as a sole proprietor means your personal assets (home, savings, car, retirement accounts) are exposed if your business is sued or defaults on a debt. An LLC creates a liability shield between the business and you personally.
Enter your approximate personal assets to illustrate potential unprotected exposure:
Estimated unprotected personal exposure without an LLC:
$150,000
This is designed to illustrate potential personal liability exposure, not a legal outcome guarantee. Asset protection depends on proper entity maintenance, capitalization, and jurisdiction-specific statutes. Consult a licensed attorney for your situation. Per Clint Coons (Anderson Business Advisors) and Garrett Sutton (Sutton Law Center) both note that piercing the veil most often occurs when an LLC is treated as a personal piggy bank, not when the LLC is properly formed and maintained.
An LLC costs $99-$299 to form in most states. Protecting $150,000 in personal assets for that cost is a straightforward calculation.
Ready to form your LLC?
ZenBusiness handles the state filing, registered agent, and paperwork so you can get your business official without doing it yourself.
We may earn a commission if you sign up through this link, at no extra cost to you.
What Does It Really Cost to Start a Business in 2026?
The internet is full of "$500 to start an LLC" claims and "$50,000 startup cost" horror stories. Neither is useful. The actual cost depends almost entirely on three variables: your state of formation, your entity type, and how many services you outsource vs. do yourself.
For a single-member Wyoming LLC doing things the smart way, expect to spend $900-$1,300 in Year 1. For a multi-member New York LLC with attorney-drafted agreements, you are closer to $3,000-$5,000 before incidentals.
The biggest variable nobody talks about: The registered agent. Every state requires one. Going DIY (your home address) is legal but puts your address on public record and means you need to be physically present during business hours. A professional RA service runs $99-$299 per year and is often the best $100 you spend when launching.
LLC State Filing Fees by State (Hadassah-Served States)
The fees below are the one-time Articles of Organization filing fee (formation fee). They do not include annual report fees, franchise taxes, or registered agent costs. CALEB-VERIFY Confirm current rates at each state's Secretary of State website before filing.
State
LLC Filing Fee
Annual Report Fee
State Income Tax
Notes
Wyoming
$100
$52 min
None
Best overall for privacy + asset protection
New Mexico
$50
None
4.9%
Lowest formation cost in US; no annual report
Nevada
$75
$350
None
No state income tax; higher ongoing cost
Delaware
$110
$300/yr
None (non-residents)
Gold standard for investors; VC-preferred
Texas
$300
None (franchise tax applies above threshold)
None
Good for TX-based businesses; no income tax
Florida
$125
$138.75
None
Strong for FL residents; no income tax
North Dakota
$135
$50
1.1-2.5%
Low-cost formation in Great Plains
South Dakota
$150
$50
None
No state income tax; low annual cost
New York
$200
$9
4-10.9%
Publication requirement adds ~$600-$1,200
California note: $70 formation fee but a mandatory $800/year minimum franchise tax makes it the most expensive common state to maintain an LLC. California residents generally form in CA despite the cost; non-residents often form elsewhere.
The Registered Agent Requirement Explained
A registered agent (also called a statutory agent or agent for service of process) is required in every US state. The agent's job is to receive legal documents (lawsuits, government notices, subpoenas) on behalf of your business during regular business hours at a physical address in the state of formation.
Your options:
Be your own RA: Legal, but your home or office address becomes part of the public record. You must be available at that address 9am-5pm on business days. If you travel or move, you risk missing critical legal notices.
Professional RA service: $99-$299/year. Keeps your address private. Scans and emails documents immediately. Usually includes other compliance reminders.
Wyoming RA tip: If you form a Wyoming LLC but operate primarily in another state, Wyoming still requires a registered agent with a Wyoming address. A professional RA service in Wyoming typically runs $49-$149/year and is significantly cheaper than Nevada or Delaware equivalents.
BOI Report: The Hidden Filing Most New Business Owners Miss
The Corporate Transparency Act created a new federal disclosure requirement: most small LLCs and corporations must file a Beneficial Ownership Information (BOI) Report with FinCEN (the Treasury Department's Financial Crimes Enforcement Network).
Filing is free at fincen.gov. Third-party services charge $50-$100 to file it for you, which is largely unnecessary for a straightforward single-member LLC.
CALEB-VERIFY-NEEDED The BOI reporting requirement has been subject to multiple court injunctions and stayed enforcement periods in 2024-2025. Verify current filing requirements at FinCEN.gov before treating this estimate as final.
DIY vs. Formation Service: When Each Makes Sense
The DIY route is genuinely free for most formation steps: the IRS issues EINs at no cost, FinCEN accepts BOI filings for free, and state SOS websites accept Articles of Organization directly. The cost is your time and the risk of paperwork errors.
A formation service bundles filing, registered agent, and EIN into a predictable flat fee. For a first-time founder, that predictability and error-reduction is often worth $100-$200 more than DIY.
The operating agreement is the most common place DIY founders cut corners. A template works for simple single-member LLCs. Multi-member LLCs with different capital contributions, profit splits, or exit terms need attorney review. A $500 operating agreement prevents a $50,000 dispute.
Disclaimer: FigureNerd calculators are educational estimation tools. State filing fees, registered agent pricing, and service costs change and vary. Confirm current figures at your state's Secretary of State website. This is not legal, tax, or financial advice. Consult a licensed attorney or CPA before forming any entity. BOI reporting requirements are subject to regulatory and judicial change; verify at FinCEN.gov.