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How much does it cost to form a corporation in each state?

Filing articles of incorporation costs from $35 in Montana to $300 in Texas, and in 14 states the fee is a minimum that rises with the number of authorized shares or the capital. Over five years of state fees the range runs from $35 in Montana to $4,225 in California, where the $800 minimum franchise tax is the largest recurring charge.

Corporation fees in every state

State fees for a for-profit business corporation. "To file" is the articles of incorporation plus any fee the state requires with them. "Each year" is the annual report fee plus any minimum franchise tax, with a biennial report counted at half per year. A figure marked min. is a floor that rises with authorized shares, capital or assets.

The Rank page sorts the same figures by five-year cost: set the business type to Corporation.

The cheapest and most expensive filings

Montana charges $35. Seven states charge $50: Arkansas and Oklahoma as minimums, and Colorado, Hawaii, Iowa, Mississippi and Kentucky ($40 plus a $10 organization tax for 1,000 shares or fewer). Michigan is $60: a $10 filing fee plus a $50 organization fee for 60,000 or fewer shares. At the top are Texas at $300, Massachusetts at a $275 minimum, Connecticut at $250, Rhode Island at a $230 minimum and Alabama at $200, which includes $100 the Secretary of State pays to the county.

Fees that rise with shares

Delaware's $109 is the base for a one-page certificate and varies with authorized stock; each year it charges a $50 report plus a franchise tax of at least $175 under the authorized shares method. Nevada's $75 filing fee and $150 annual list are both minimums that rise with the value of authorized shares, and the $500 state business license is flat, so a Nevada corporation pays at least $650 a year. Virginia's $75 filing fee and $100 annual registration fee both rise with authorized shares. Arkansas's annual franchise tax report is 0.3 percent of outstanding capital stock with a $150 minimum ($300 for a corporation without authorized stock).

What happens each year

Seven states list a $0 yearly report fee for a corporation with the Secretary of State: Alabama, Idaho, Minnesota (a free renewal), Montana (free between January 1 and April 15, $35 after), Ohio, Oklahoma and Texas, where the franchise tax report goes to the Comptroller instead. Eight file every two years: Alaska, the District of Columbia, Indiana, Iowa, Kansas, Nebraska, New Mexico and New York (see biennial versus annual report states). California's page states that corporations incorporated on or after January 1, 2020 are not required to pay the minimum franchise tax in their first taxable year. Michigan's $25 annual report falls to $15 for payments after September 30, 2027.

The same fees side by side with LLC fees in the ten most-searched states are in LLC versus corporation state fees.

Common questions

What is the cheapest state to incorporate in?

Montana, at $35 for the articles of incorporation and no annual report fee. Seven states charge $50: Arkansas, Colorado, Hawaii, Iowa, Kentucky, Mississippi and Oklahoma.

Which state has the highest incorporation fee?

Texas, at $300. Massachusetts charges at least $275, Connecticut $250, Rhode Island at least $230 and Alabama $200.

How much does a Delaware corporation cost each year?

At least $225: a $50 annual report plus a franchise tax of at least $175 under the authorized shares method, which rises with the number of authorized shares.

Which states have no annual report for corporations?

Alabama, Idaho, Minnesota, Montana, Ohio, Oklahoma and Texas list a $0 report fee with the Secretary of State. Minnesota and Montana still require a yearly filing; it is free when filed on time.

Which state is the most expensive for a corporation over five years?

California, $4,225: $100 to file, then $825 a year ($800 minimum franchise tax plus a $25 statement of information). Nevada follows at a minimum of $3,325.