LLC Annual Fees by State: A Complete Guide for 2024
It's essential to understand all the involved costs to form an LLC. One crucial aspect you'll need to consider is the annual fee for maintaining a limited liability company (LLC) in your state.
This guide will help you understand all about LLC annual fees by state for 2024.
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What Is an LLC Filing Fee?
An LLC filing fee is an initial cost that you need to pay to the state when you form an LLC. This fee is required for the state to process your documents and officially register your business.
The exact amount of the filing fee varies depending on the state, but it's a crucial part of starting your LLC.
What Does an LLC Annual Fee Entail?
An LLC annual fee is a recurring payment that your LLC has to make to the state every year or sometimes every other year, depending on the state's rules. This fee is essential to keep your LLC operating legally and in good standing with the state.
These biennial or annual fees are mandatory, typically irrespective of how much your LLC makes or how active it is. If you neglect to pay these fees or file any compliance reports, your LLC may risk being dissolved or shut down by the state.
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LLC Annual Fees by State
The costs for maintaining an LLC can differ significantly by state. Let's dive into a rundown of each state’s LLC annual fees (if any):
States With Annual Reports
The following states require LLCs to file annual reports. These reports are typically an update of your business’s information, including your registered agent, principal address, and member names and addresses.
| State | Name of Report | Filing Fee |
| Colorado | Periodic Report | $10 |
| Connecticut | Annual Report | $80 |
| Florida | Annual Report | $138.75 |
| Georgia | Annual Registration | $50 online, $60 by mail |
| Hawaii | Annual Report | $16 ($15 filing fee plus $1 State Archive Fee) |
| Idaho | Annual Report | $0 |
| Illinois | Annual Report | $75 |
| Kansas | Annual Report | $55 |
| Kentucky | Annual Report | $15 |
| Louisiana | Annual Report | $30 |
| Maine | Annual Report | $85 |
| Maryland | Annual Report | $300 |
| Massachusetts | Annual Report | $500 |
| Michigan | Annual Statement | $25 |
| Minnesota | Annual Report | $0 |
| Mississippi | Annual Report | $0 |
| Montana | Annual Report |
$20 (prior to April 15) $35 (after April 15) |
| Nevada | Annual List | $150 filing fee + $200 business license fee |
| New Hampshire | Annual Report | $100 |
| New Jersey | Annual Report | $75 |
| North Carolina | Annual Report | $200 |
| North Dakota | Annual Report | $50 |
| Oklahoma | Annual Certificate | $25 |
| Oregon | Annual Report | $100 |
| Pennsylvania | Annual Report | $7 |
| Rhode Island | Annual Report | $50 |
| South Dakota | Annual Report | $50 online, $65 by mail |
| Tennessee | Annual Report | $50 per member ($300 minimum, $3,000 maximum) |
| Texas | Annual Report | $0 |
| Utah | Annual Report | $13 |
| Vermont | Annual Report | $35 |
| Washington | Annual Report | $60 |
| West Virginia | Annual Report | $25 |
| Wisconsin | Annual Report | $25 |
| Wyoming | Annual Report | $50 or 2/10 of one mill on the dollar (whichever is greater based on a company's Wyoming assets) |
States With Biennial Reports
Certain states follow a biennial reporting system, meaning LLCs only need to file a report every other year:
- Alaska: $100
- Iowa: $60
- Washington D.C.: $300
- Indiana: $50 (known as a Business Entity Report)
- New York: $9 (known as a Biennial Statement)
- Nebraska: $13 online or $10 by mail
States With Annual Fees and Taxes
Many states impose some sort of franchise tax, business privilege tax, or annual fee on LLCs. Some of these states may require more than one method:
- Alabama: Alabama requires LLCs to obtain an annual business privilege license and pay an annual business privilege tax. License fees vary by county, while the minimum business privilege tax is $100.
- Arkansas: Arkansas LLCs have to pay a flat annual franchise tax of $150 per year.
- California: California requires both a flat annual franchise tax for LLCs of $800 as well as a tiered LLC fee for LLCs with revenue over $250,000.
- Delaware: Delaware’s annual franchise tax is $300 for all LLCs.
- New York: LLCs taxed by default by the IRS must pay an annual fee, with a minimum fee of $25 and a maximum fee of $4,500.
- Ohio: Ohio’s Commercial Activity Tax (CAT) has a minimum fee of $150.
- Texas: Texas imposes a franchise tax on LLCs, which is calculated based on the company's margin or income. (Most LLCs will end up filing a “No Tax Due” report.)
- Tennessee: Tennessee charges an annual franchise tax based on either the net worth or the real and tangible property of the LLC in Tennessee. The minimum franchise tax is $100, regardless if your business is active or not.
- Virginia: Virginia’s annual registration fee is $50 for LLCs.
Remember, it's essential to be aware of these taxes and the specific rates and regulations in your state when forming an LLC, as they can have significant financial implications for your business. Always consult with a tax advisor or legal expert if you have any doubts or questions.
States With No Annual Reports or Fees
Only four states do not require any annual fees or reports for LLCs:
- Arizona
- Missouri
- New Mexico
- South Carolina
Choosing the Cheapest State
Forming an LLC in a state with the lowest fees can be tempting, but it's important to note that this could potentially cost you more in the long run.
While some states have lower fees or taxes, you will ultimately also have to register your LLC and pay taxes in the state where you do business.
It's recommended to form an LLC in the state where you are conducting business.
FAQs
The fees for an LLC vary based on the state you're incorporating in. They include filing fees, annual or biennial reports, franchise taxes, and possible additional charges for various state permits and licenses. It's essential to check your specific state's requirements for the most accurate cost breakdown.
Annual fees for an LLC again depend on the state. Some states, like Delaware, charge an annual franchise tax, while others, like Arizona, require an annual report fee. It's also common to pay fees for renewals of state permits and licenses. Always check with your state's Secretary of State or equivalent department for specific information.
The cost of maintaining an LLC per year varies from state to state. In general, you may have to pay an annual report fee, franchise tax, and other fees related to renewing business licenses or permits. These costs can range from less than $100 to several hundreds of dollars per year.
Starting an LLC involves a number of costs, including the state filing fee to form the LLC, which can range from $35 to $500, depending on the state. Additional costs might include hiring a registered agent, obtaining necessary business licenses and permits, and possible LLC operating agreement drafting and publication fees, where required.
The cheapest state to form an LLC in terms of formation fees is Montana, with a filing fee of just $35. However, other states like Colorado, Arkansas, Kentucky, and New Mexico also have relatively low filing fees.
Keep in mind that these fees are subject to change, and other costs like annual report fees, franchise taxes, and the need for a registered agent can impact the overall cost.
Most states require some form of annual or biennial report to keep your LLC in good standing. These reports typically involve a fee. Some states also require annual franchise taxes. If these are not paid, and reports are not filed, your LLC can be dissolved by the state.
An LLC lasts as long as its members wish it to, provided it meets all state requirements, such as filing annual or biennial reports and paying any required fees or taxes. If these requirements aren't met, the state may dissolve the LLC. In the absence of these issues, an LLC can theoretically exist in perpetuity.