Which state is cheapest to form an LLC in?

It depends on filing fee versus ongoing cost. Filing fees run $70 in California, $110 in Delaware, $125 in Florida, $200 in New York, and $300 in Texas. Ongoing cost inverts that order: Texas costs $0 for most businesses under roughly $2.5M revenue, Delaware is a flat $300/yr, Florida is $138.75/yr, New York adds a publication cost of $50–$2,000+ depending on county, and California charges an $800/yr minimum franchise tax even with zero revenue.

Which states use the ABC test for worker classification?

Among these five states, California applies the ABC test in full — all three prongs. Delaware applies an ABC test for unemployment insurance and a common-law test elsewhere, so the test depends on where the work happens, not where the entity is formed. Texas, New York, and Florida all use a common-law right-to-control test.

How long do I have to sue over a breach of contract?

For written contracts: 6 years in New York, 5 years in Florida, 4 years in California and Texas, and 3 years in Delaware (up to 20 with a qualifying $100K+ clause). For oral contracts: 6 years in New York, 4 years in Texas, 3 years in Delaware, and 2 years in California. None of these numbers are static — confirm current figures before relying on any date.

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State-by-State Legal Guides: California, Texas, New York, Delaware & Florida

State-by-state guides to LLC formation costs, worker classification tests, and contract enforcement deadlines in California, Texas, New York, Delaware, and Florida.

Written and reviewed by Talking Tree's legal team · Last reviewed August 2026

State-by-State Legal Guides: California, Texas, New York, Delaware & Florida

The legal answer to almost every startup question — "how much does an LLC cost," "is my non-compete enforceable," "how long do I have to sue" — starts with "it depends on your state." These guides give you the actual numbers and rules for the five states where most of our users are forming entities, hiring, and doing business.

LLC Formation Costs

State	Filing Fee	Biggest Ongoing Cost	Distinctive Rule
California	$70	$800/yr minimum franchise tax	Flat tax applies even with zero revenue
Texas	$300	$0 for most (under ~$2.5M revenue)	No income tax, no annual report fee
New York	$200	Publication: $50–$2,000+ by county	Mandatory newspaper publication
Delaware	$110	$300/yr flat franchise tax	No public disclosure of members
Florida	$125	$138.75/yr annual report	Late report → dissolution by September

Independent Contractor vs. Employee

State	Test Used	Strictest Element
California	ABC test (all 3 prongs)	Work must be outside your usual business
Texas	Common law / right to control	No bright-line test — totality of circumstances
New York	Common law / right to control	Heightened scrutiny on app-based/gig work
Delaware	ABC test (unemployment insurance) / common law (elsewhere)	Test depends on where the work happens, not where the entity is formed
Florida	Common law / right to control	No state wage-and-hour statute — federal FLSA governs

Contract Enforcement Deadlines

State	Written Contract	Oral Contract	Notable Rule
California	4 years	2 years	Wide gap rewards putting everything in writing
Texas	4 years	4 years	Same period regardless of written or oral
New York	6 years	6 years	Longest window; courts won't let parties extend it further
Delaware	3 years (up to 20 with a qualifying $100K+ clause)	3 years	Shortest default, but extendable by explicit contract language
Florida	5 years	Shorter — confirm current period	Mid-range; get agreements in writing

None of these numbers are static — legislatures and courts update them regularly, and every guide above links back to the primary statute where possible. Confirm current figures before relying on any date, fee, or threshold for an active legal decision.

Not sure which state's rules apply to your situation? Find Counsel connects you with a vetted attorney licensed in the right state, and Talking Tree's Contract Templates hub has attorney-drafted documents ready to customize in Cedar.