Demystifying the True Cost of US Business Formation
Most formation platforms advertise “$0 LLC formation” while burying hundreds of dollars in mandatory state franchise taxes, annual renewal fees, and recurring registered agent surcharges. LLC TrueCost was founded to provide complete statutory transparency for founders.
Zero Hidden Franchise Taxes
We audit state tax codes directly—including California's $800 minimum franchise tax, Delaware's $400 statutory entity fee, and Tennessee's F&E tax—so founders avoid surprise government tax levies.
5-Year Real Cost Horizon
An LLC is not a one-day transaction. We model 5 taxable years of required compliance—annual reports, biennial statements of information, and mandatory public notice publication fees.
Statute-Verified Accuracy
Every fee in our database is referenced against official Secretary of State fee schedules and verified annually to account for new legislation (such as Delaware HB 400).
Our Editorial & Verification Methodology
How our research team maintains 50-state statutory accuracy.
Under Google's Your Money or Your Life (YMYL) content standards, accurate business guidance requires rigorous, primary-source verification. Our research process follows three core tenets:
We verify filing fees directly with the 50 state corporate divisions (e.g. California SOS bizfile, Florida Sunbiz, New York Department of State, Texas Comptroller).
When state legislatures alter annual report schedules or franchise tax minimums (such as Delaware HB 400), our models are updated within 48 hours.
Every calculator discloses the baseline assumption: domestic LLC, single-member or multi-member pass-through entity, baseline registered agent pricing, and standard state turnarounds.
Anyone can review our full audit trail at our Methodology & Corrections page.
Editorial Independence & Affiliate Disclosure
Full transparency under Federal Trade Commission (FTC) guidelines.
LLC TrueCost is 100% free to use for founders, accountants, and attorneys. To fund continuous statutory research, server hosting, and regular data auditing, we partner with reputable compliance service providers.
When you click on certain links to registered agent services (such as Northwest Registered Agent or LegalZoom) or business banking solutions (such as Mercury), we may earn an affiliate commission at no additional cost to you.
Strict Independence Guarantee: Commercial partnerships never influence our statutory cost numbers. A state's filing fee, annual report fee, or franchise tax is determined solely by state legislation—never by an advertiser. If a service provider offers poor value or predatory pricing, we disclose it plainly.
Have Feedback or a Statute Update?
If your state's corporate division recently enacted fee changes or you have questions regarding our 5-year financial models, our editorial research team is ready to assist.