If you're forming a C- or S- corporation and not planning to turn a profit any time soon and don't particularly care what state it's formed in, these question comes up:
- What is the cheapest state to incorporate in?
- What are the lowest annual filing fees?
- What is the fastest turnaround time to form the corporation?
I could not find answers to these questions anywhere so I created my own data set. The following lists are showing fixed fees paid to the state over the first 5 years.
Why don't I just incorporate in Delaware or California like everyone else?
You're asking the wrong question. You should be asking"Why should I?" The cost difference for year 1 does not seem like much. But your corporation is going to be around for many years. After just 5 years, your CA corp will have cost you $4255, this is money you will never seen again, paid as fees to the state. Compare that with Oklahoma, where 5 year cost is just $52. Imagine if your structure requires you to form many corporations to protect individual assets or services. With 10 corporations over a 5 year period, you've now paid California almost $50k in fees.
Top 7 most expensive states to form corporations in:
| State | 5 year cost | Filing frequency (years) | State incorporation fee | Annual filing fee |
| California | $4,255 | 1 | $130 | $825 |
| Nevada | $3,325 | 1 | $75 | $650 |
| Washington DC | $3,220 | 2 | $220 | $300 |
| Pennsylvania | $2,025 | 1 | $125 | $380 |
| Maryland | $1,718 | 1 | $218 | $300 |
| Alaska | $1,260 | 2 | $260 | $100 |
| Delaware | $1,214 | 1 | $89 | $225 |
Top 6 least expensive states to form corporations in:
| State | 5 year cost | Filing frequency (years) | State incorporation fee | Annual filing fee |
| Oklahoma | $52 | 1 | $52 | $0 |
| Ohio | $99 | never | $99 | $0 |
| Idaho | $100 | 1 | $100 | $0 |
| Colorado | $100 | 1 | $50 | $10 |
| Hawaii | $125 | 1 | $50 | $15 |
| West Virginia | $135 | 1 | $135 | $0 |
Top 6 easiest states to maintain a corporation in
Based on how often you must file annual reports and cost to file report. Ohio is he only state that does not require an annual report. Most states require annual reports, many require bi-annual.
| State | Filing frequency (years) | State incorporation fee | Annual filing fee | 5 year cost |
| Ohio | 0 | $99 | $0 | $99 |
| Oklahoma | 1 | $52 | $0 | $52 |
| Idaho | 1 | $100 | $0 | $100 |
| West Virginia | 1 | $135 | $0 | $135 |
| Alabama | 1 | $163 | $0 | $163 |
| Minnesota | 1 | $165 | $0 | $165 |
Top 5 slowest states to incorporate
Based on how many days it takes the state to form the corporation once you've filed the correct paperwork and paid the fees. New Mexico comes in at a whopping 3 months. Alabama and North Dakota have painfully slow processing even with expedited times. If you need your corporation done fast don't use these states!
| State | State Filing Time (days) | Expedited Filing Time (days) | Filing frequency (years) | 5 year cost |
| New Mexico | 92 | 1 | 2 | $350 |
| Wisconsin | 71 | 1 | 1 | $300 |
| Alabama | 56 | 21 | 1 | $163 |
| Arizona | 56 | 12 | 1 | $285 |
| North Dakota | 49 | 28 | 1 | $225 |
| New Hampshire | 49 | 28 | 1 | $665 |
Top 5 fastest states to incorporate
These states have the fastest incorporation times of just 7 days and lowest fees.
| State | State Filing Time (days) | Expedited Filing Time (days) | Filing frequency (years) | 5 year cost |
| Minnesota | 7 | 1 | 1 | $165 |
| Colorado | 7 | 1 | 1 | $100 |
| Missouri | 7 | 1 | 1 | $158 |
| Tennessee | 7 | 1 | 1 | $208 |
| Mississippi | 7 | 1 | 1 | $185 |
| South Dakota | 7 | 1 | 1 | $300 |
WINNER: Best state to incorporate in is OHIO
OHIO is the all around best state to incorporate in due to its no-annual filing requirement, low one-time cost of $99. The downside is that incorporation time is on the higher end of 21 days, but you can expedite to 7 days.
Runner up is Oklahoma with even lower one-time setup fee and faster processing time of 14 days.
All state data
| State | 5 year cost | State incorporation fee | Annual filing fee | Filing frequency (years) | State Filing Time (days) | Expedited Filing Time (days) |
| Alabama | $163 | $163 | $0 | 1 | 56 | 21 |
| Alaska | $1,260 | $260 | $100 | 2 | 7 | 1 |
| Arizona | $285 | $60 | $45 | 1 | 56 | 12 |
| Arkansas | $800 | $50 | $150 | 1 | 10 | 3 |
| California | $4,255 | $130 | $825 | 1 | 35 | 15 |
| Colorado | $100 | $50 | $10 | 1 | 7 | 1 |
| Connecticut | $1,040 | $290 | $150 | 1 | 12 | 4 |
| Delaware | $1,214 | $89 | $225 | 1 | 10 | 2 |
| Florida | $820 | $70 | $150 | 1 | 12 | 5 |
| Georgia | $350 | $100 | $50 | 1 | 14 | 2 |
| Hawaii | $125 | $50 | $15 | 1 | 14 | 2 |
| Idaho | $100 | $100 | $0 | 1 | 21 | 10 |
| Illinois | $1,031 | $281 | $150 | 1 | 7 | 1 |
| Indiana | $398 | $98 | $30 | 2 | 7 | 2 |
| Iowa | $350 | $50 | $30 | 2 | 49 | 25 |
| Kansas | $330 | $80 | $50 | 1 | 7 | 1 |
| Kentucky | $425 | $50 | $75 | 1 | 21 | 7 |
| Louisiana | $200 | $75 | $25 | 1 | 14 | 4 |
| Maine | $320 | $145 | $35 | 1 | 35 | 10 |
| Maryland | $1,718 | $218 | $300 | 1 | 7 | 1 |
| Massachusetts | $810 | $265 | $109 | 1 | 7 | 2 |
| Michigan | $175 | $50 | $25 | 1 | 21 | 8 |
| Minnesota | $165 | $165 | $0 | 1 | 7 | 1 |
| Mississippi | $185 | $50 | $27 | 1 | 7 | 1 |
| Missouri | $158 | $58 | $20 | 1 | 7 | 1 |
| Montana | $145 | $70 | $15 | 1 | 12 | 2 |
| Nebraska | $325 | $65 | $26 | 2 | 7 | 2 |
| Nevada | $3,325 | $75 | $650 | 1 | 7 | 1 |
| New Hampshire | $665 | $165 | $100 | 1 | 49 | 28 |
| New Jersey | $380 | $130 | $50 | 1 | 7 | 1 |
| New Mexico | $350 | $100 | $25 | 2 | 92 | 1 |
| New York | $305 | $125 | $18 | 2 | 9 | 2 |
| North Carolina | $225 | $125 | $20 | 1 | 28 | 10 |
| North Dakota | $225 | $100 | $25 | 1 | 49 | 28 |
| Ohio | $99 | $99 | $0 | 0 | 21 | 7 |
| Oklahoma | $52 | $52 | $0 | 1 | 14 | 3 |
| Oregon | $600 | $100 | $100 | 1 | 7 | 2 |
| Pennsylvania | $2,025 | $125 | $380 | 1 | 28 | 10 |
| Rhode Island | $230 | $230 | $0 | 1 | 7 | 2 |
| South Carolina | $310 | $310 | $0 | 1 | 7 | 2 |
| South Dakota | $300 | $150 | $30 | 1 | 7 | 1 |
| Tennessee | $208 | $108 | $20 | 1 | 7 | 1 |
| Texas | $300 | $300 | $0 | 1 | 7 | 3 |
| Utah | $136 | $76 | $12 | 1 | 28 | 12 |
| Vermont | $250 | $125 | $25 | 1 | 21 | 10 |
| Virginia | $575 | $75 | $100 | 1 | 7 | 1 |
| Washington | $545 | $200 | $69 | 1 | 21 | 6 |
| Washington DC | $3,220 | $220 | $300 | 2 | 14 | 2 |
| West Virginia | $135 | $135 | $0 | 1 | 21 | 10 |
| Wisconsin | $300 | $100 | $40 | 1 | 71 | 1 |
| Wyoming | $350 | $100 | $50 | 1 | 7 | 1 |
About the author
I'm not a lawyer and you should double check data before you make any final decisions. I work for Google as an engineer. I am sharing this data to make your life easier, I get nothing out of this. Use at your own risk.
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