How to Register Your Business in the Cheapest U.S. States (And Why It Matters)

Starting a business is exciting—but it can also be expensive. Between licenses, permits, taxes, and legal fees, the costs add up fast. One of the first and most critical decisions you make is where to register your business. The state you choose doesn’t just affect your startup costs—it can influence your taxes, ongoing fees, and even your ability to scale your business in the future.

At Launch Lite, we specialize in helping entrepreneurs start businesses using low-cost or free tools, focusing on keeping recurring costs as low as possible. That includes guidance on choosing the right state for registration.

In this guide, we’ll walk you through the cheapest states to register your business, why it matters, and how you can save thousands by making a strategic choice.

Why Choosing the Right State Matters

Many first-time business owners make the mistake of automatically registering in their home state without considering alternatives. Here’s why that can cost you:

Startup Costs Vary by State Filing fees, publication requirements, and other initial costs differ dramatically between states. For example, registering an LLC in Massachusetts can cost $500 or more, while in Kentucky, it’s closer to $40.
Annual Fees and Compliance After your business is registered, states often require annual reports, franchise taxes, or other fees. These can range from $0 in states like Wyoming to several hundred dollars in others. Over five years, the difference can add up to thousands of dollars.
State Taxes and Corporate Obligations Some states are more business-friendly in terms of income, corporate, or sales taxes. Choosing the right state can reduce your tax burden legally and efficiently.
Privacy and Asset Protection Certain states, such as Delaware and Nevada, offer stronger privacy protections for business owners and better corporate legal frameworks, which is appealing for startups with investors.

Cheapest States to Register a Business

While every business is unique, here’s a breakdown of states that consistently offer low-cost registration and maintenance.

1. Wyoming

LLC Filing Fee: $100
Annual Fee: $50 minimum
Why It’s Cheap: No state income tax and low annual fees make Wyoming attractive for small businesses. LLC owners enjoy privacy protections as the state doesn’t require public disclosure of members.

2. Delaware

LLC Filing Fee: $90
Annual Fee: $300
Why It’s Popular: Delaware is famous for its pro-business legal environment. While slightly more expensive than Wyoming, it’s ideal for startups seeking investors or planning to go public.

3. Nevada

LLC Filing Fee: $75
Annual Fee: $200
Why It’s Friendly: Nevada has no corporate or personal income tax and strong asset protection laws. This makes it a common choice for entrepreneurs looking to shield assets.

4. Kentucky

LLC Filing Fee: $40
Annual Fee: $15–$50 depending on revenue
Why It’s Affordable: Kentucky offers one of the lowest filing fees in the country, making it ideal for small businesses on a shoestring budget.

5. New Mexico

LLC Filing Fee: $50
Annual Fee: $0 (no annual report requirement)
Why It’s Low-Cost: New Mexico combines low filing fees with zero ongoing reporting, meaning less paperwork and fewer recurring costs.

Other Factors to Consider

Cost isn’t the only factor. You also want to consider:

Business Location vs. State Registration: If your business operates mainly in a state other than where you register, you may still need to register as a foreign entity, which comes with additional fees.
Taxes and Sales Tax: Some states are tax-free, but you might still have federal obligations. Understanding your total tax exposure is key.
Future Growth: Consider if the state aligns with your long-term business goals. A cheap registration now may cost more later if you need to change your structure or move.

How Launch Lite Can Help You Save Money

At Launch Lite, we specialize in strategic, low-cost business launches. Our services include:

DIY Online Courses – Learn how to register your business and get started for minimal cost.
Guided Setup – Follow step-by-step instructions while we assist behind the scenes.
Full-Service Launch – We handle everything from registration to business setup using open-source and free tools, reducing your recurring costs.

If you want to start your business in the smartest and cheapest way possible, we can help. Click below to schedule a free consultation and get expert guidance on choosing the right state for your business.

Key Takeaways

The state you register in affects your costs, taxes, and privacy.
Wyoming, Delaware, Nevada, Kentucky, and New Mexico are among the cheapest and most business-friendly options.
Think long-term, considering where your business will operate, grow, and scale.
Launch Lite is here to help you start efficiently with minimal recurring costs using open-source tools and smart strategies.

By taking a few strategic steps at the beginning, you can save hundreds—even thousands—of dollars while building a business that’s structured to thrive.

Book Your Free Call Today →