LLC Annual Fees by State
The table below shows LLC annual fees by state.
This is up to date as of August 2017.
The average LLC annual fee in the US is $101.
Most states call this the Annual Report, however, it has many other names:
– Annual Certificate
– Annual List of Members
– Annual Registration Fee
– Biennial Report
– Biennial Statement
– Business Privilege Tax Return
– Decennial Report
– Franchise Tax Report
– Periodic Report
– and more
What’s the LLC Filing Fee?
The LLC filing fee is a one-time fee paid to the state to form your LLC.
What’s the LLC Annual Fee?
The LLC annual fee is an ongoing fee paid to the state to keep your LLC in compliance and in good standing. It’s usually paid every 1 or 2 years, depending on the state. This fee is required, regardless of your LLC’s income or activity. Said another way: you have to pay this. Failure to pay the annual fee will result in the state dissolving (shutting down) your LLC. This is the case in over 90% of the states.
LLC Annual Fees:
| State LLC | LLC Filing Fee | LLC Annual Fee | Due | Payable To & Form Name |
|---|---|---|---|---|
| Alabama LLC | $183 | $100 minimum | 2.5 months after formation | AL Department of Revenue, Initial Business Privilege Tax Return |
| Alaska LLC | $250 | $100 | Biennial, January 2nd | AK Department of CCED, Biennial Report |
| Arizona LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| Arkansas LLC | $50 | $150 | Annual, May 1st | AR Secretary of State, Franchise Tax Report |
| California LLC | $70 | $800 + $20 | Various | CA Franchise Tax Board, Annual LLC Franchise Tax + Stmt. of Information |
| Colorado LLC | $50 | $10 | 5 month window surrounding anniversary month | CO Secretary of State, Periodic Report |
| Connecticut LLC | $160 | $20 | Annual, anniversary date | CT Secretary of State, Annual Report |
| Delaware LLC | $90 | $300 | Annual, June 1st | DE Dept. of State, Annual Franchise Tax |
| Florida LLC | $125 | $138.75 | Annual, May 1st | FL Department of State, Annual Report |
| Georgia LLC | $100 | $50 | Annual, April 1st | GA Secretary of State, Annual Registration Fee |
| Hawaii LLC | $50 | $15 | During quarter of anniversary date | HI Business Registration Division, Annual Report |
| Idaho LLC | $100 | $0 (must file an information report, no fee though) | Annual, anniversary month | ID Secretary of State, Annual Report |
| Illinois LLC | $500 | $250 | Annual, anniversary month | IL Secretary of State, Annual Report |
| Indiana LLC | $90 | $50 (by mail) or $31 (online) | Biennial, anniversary month | IN Secretary of State, Business Entity Report |
| Iowa LLC | $50 | $45 | Biennial, April 1st of odd years | IA Secretary of State, Biennial Report |
| Kansas LLC | $165 | $55 | Annual, April 15th | KS Secretary of State, Annual Report |
| Kentucky LLC | $40 | $15 | Annual, June 30th | KY Secretary of State, Annual Report |
| Louisiana LLC | $100 | $35 | Annual, anniversary month | LA Secretary of State, Annual Report |
| Maine LLC | $175 | $85 | Annual, June 1st | ME Secretary of State, Annual Report |
| Maryland LLC | $100 | $300 | Annual, April 15th | MD State Dept. of Assessments, Personal Property Tax |
| Massachusetts LLC | $500 | $500 | Annual, anniversary month | MA Secretary of the Commonwealth, Annual Report |
| Michigan LLC | $50 | $25 | Annual, February 15th | MI Dept. of LARA, Annual Report |
| Minnesota LLC | $160 | $0 (must file an information report, no fee though) | Annual, December 31st | MN Secretary of State, Annual Report |
| Mississippi LLC | $50 | $0 (must file an information report, no fee though) | Annual, April 15th | MS Secretary of State, Annual Report |
| Missouri LLC | $105 | $0 | No annual fee + no report due | N/A, N/A |
| Montana LLC | $70 | $20 | Annual, April 15th | MT Secretary of State, Annual Report |
| Nebraska LLC | $105 | $10 | Biennial, April 1st of odd years | NE Secretary of State, Biennial Report |
| Nevada LLC | $75 | $500 | $150 due month of filing. $350 annually, anniversary month | NV Secretary of State, Annual List of Members |
| New Hampshire LLC | $100 | $100 | Annual, April 1st | NH Secretary of State, Annual Report |
| New Jersey LLC | $125 | $53 | Annual, anniversary month | NJ Department of Treasury, Annual Report |
| New Mexico LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| New York LLC | $200 | $9 | Biennial, anniversary month | NY Department of State, Biennial Statement |
| North Carolina LLC | $125 | $200 | Annual, April 15th | NC Secretary of State, Annual Report |
| North Dakota LLC | $135 | $50 | Annual, November 15th | ND Secretary of State, Annual Report |
| Ohio LLC | $99 | $0 | No annual fee + no report due | N/A, N/A |
| Oklahoma LLC | $100 | $25 | Annual, anniversary month | OK Secretary of State, Annual Certificate |
| Oregon LLC | $100 | $100 | Annual, anniversary month | OR Secretary of State, Annual Report |
| Pennsylvania LLC | $125 | $70 | Every 10 years | PA Department of State, Decennial Report |
| Rhode Island LLC | $150 | $50 | Annual, September 1st - November 1st | RI Secretary of State, Annual Report |
| South Carolina LLC | $110 | $0 | No report due unless you file taxes as an S-Corp | N/A, N/A |
| South Dakota LLC | $150 | $50 | Annual, anniversary month | SD Secretary of State, Annual Report |
| Tennessee LLC | $300 | $300 minimum | Annual, April 1st | TN Secretary of State, Annual Report |
| Texas LLC | $300 | $0 | Annual, May 15th | TX Comptroller, Public Information Report + Franchise Tax |
| Utah LLC | $70 | $15 | Annual, anniversary month | UT Department of Commerce, Annual Report |
| Vermont LLC | $125 | $35 | Annual, March 15th | VT Secretary of State, Annual Report |
| Virginia LLC | $100 | $50 | Annual, anniversary month | VA Corporation Commission, Annual Registration Fee |
| Washington LLC | $180 | $81 | Initial $10, within 120 days of filing. $71 annual, anniversary month. | WA Secretary of State, Annual Review + Business License Renewal |
| Washington D.C. LLC | $220 | $300 | Initial April 1st, then Biennial April 1st | DCRA, Initial Report + Biennial Report |
| West Virginia LLC | $100 | $25 | Annual, July 1st | WV Secretary of State, Annual Report |
| Wisconsin LLC | $130 | $25 | Annual, anniversary quarter | WI Secretary of State, Annual Report + Business Tax Registration |
| Wyoming LLC | $100 | $50 minimum | Annual, anniversary month | WY Secretary of State, Annual Report |
Video Transcript:
Hey, folks. Matt Horwitz at llcuniversity.com. I hope you’re doing well. Today, we’re going to talk about the LLC annual fees by state, all 50 states. I am referencing a table that we have on our website. I just printed it out to read it to you. This is a little bit ridiculous to make a video about all this stuff, but hey. Some people like videos and it’s easier to consume. I’m going to go a little bit quicker here, because there’s a lot of information to cover. Again, probably 94% to 95% of the states all have an annual report or some iteration of the annual report.
Most of the time, it’s called annual report. Sometimes it’s called an annual certificate, an annual list of members, an annual registration fee, a biennial statement, a business privilege tax return, a decennial report, a franchise tax report, a period report, AKA you have to send the state money every one year, every two years and in Pennsylvania, for example, every 10 years to basically keep your LLC in good standing, and in compliance … This is very serious stuff. Don’t take this lightly. If you do not file your annual report or whatever the requirement is in your state, your state will eventually dissolve AKA shut down your LLC. This is serious business.
Now I’m basically going to quickly go over … For the most part, everyone I’m about to mention is just a fee paid once every year. Now that due date is going to vary. It’s different by every single state. You’re going to have to click through to the website to read this table, because I don’t know if you can see this, but a lot of information. Let’s run for it. Alabama, $100. Alaska, $100. Arizona, $0. Arkansas, $150. California, $800 plus $20. Colorado, $10. Connecticut, $20. Delaware, $300. DC, $300. Florida, $140. Georgia, $50. Hawaii, $15. Idaho, nothing. Well actually, let me stop myself. Some states, even though you pay $0, some … A few states, you don’t have to pay anything or file anything, and those are the good states. Just a few of those. However, there’s a bunch of other states where even though you pay 0, you still have to file a report and some documentation. Again, full details on this table.
Idaho, $0. Illinois, $250. Indiana, $30. Iowa, $45. Kansas, $55. Kentucky, $15. Louisiana, $35. Maine, $85. Maryland, minimum $300. Massachusetts … Oh boy. $500. Massachusetts and California and Nevada are your big boys, wanting $500 and $800 in California. Massachusetts, $500. Michigan, $25. Minnesota, $0. Mississippi, $0. Missouri, $0. Three 0s in a row. Montana, $20. Nebraska, $10. Nevada, $500. New Hampshire, $100. New Jersey, $53. New Mexico, $0. New York, $9. Although New York does have a funny publication requirement. If you need details on that, we do have a video and a post on our website. Again, New York, $9. North Carolina, $200. North Dakota, $50. Ohio, $0. Oklahoma, $25. Oregon, $100. Pennsylvania, $70. However, it’s every 10 years. Again, most of these … I’m not reading off the due dates. Most of these are every year. Some of these are every two years.
Rhode Island, $50. South Carolina, $0. South Dakota, $50. Tennessee, minimum $300. It goes up based on the amount of members your LLC has. Texas, $0. Although they do have a franchise tax document that needs to be filed. Utah, $15. Vermont, $35. Virginia, $50. Washington state, $81. West Virginia, $25. Wisconsin, $25. Wyoming, $50. That’s fun, throwing papers on the floor like that.
Hope this video was helpful for you. If you want all the details about is it every year, is it every other year, is it due on my anniversary month, is it due in April, is it due in June, is it due in January, they’re all due at … It’s all crazy. I wish they would all just make it the same, but they’re all over the board. Hopefully, this is just a quick run through to let you get a feel for what the price is going to be on the annual state renewals that you have to pay every year to your state in order to keep your LLC in compliance and in existence. Hope this video is helpful. Talk to you soon.
I am looking to create 2 LLC’s. I am in CA but as you know CA is very expensive. Can we talk for quick 5 minutes so I pick the right one? If yes, pls suggest a time and no.
Hi Nitin, sure, we’d be happy to help. How about Friday between 10am – 1pm? If so, give me a ring on 800-241-9066. Thanks.
I have the same exact issue, From CA, creating an LLC. Want to file in a different state, or just looking for the cheapest way to file working out of CA.
Hi Cris, if you’re doing business in California, then it’s actually cheaper to just form the LLC in CA and pay the annual fee. Please see our best state article.
Hello,
I would like to set up an LLC , i will be doing consulting assignments (and not establishing an office/local presence in any particular state) so i have flexibility in choosing the state in which to incorporate.
Could you please advice which state to set up the company based on lowest filing cost and recurring annual fees.
Thanks in advance and best regards
Hi RD, if you are a US resident, that is incorrect. Just because you don’t have an office location and you do consulting, does not exempt you from state laws of “conducting intrastate business”. That’s a big misconceptions about LLCs. If you form an LLC out of state, you’ll be required to register that LLC as a Foreign LLC in your home state. Now you have 2 LLC filing fees and 2 Annual Reports (if applicable). Having said that, if you are a non-US resident, you can pick any state you’d like :) Popular options for non-US residents are to pick a state where you may actually do business in, a state you visit (to make opening a bank account easier), or a state where you have family and friends. If none of those apply, New Mexico, Delaware, and Wyoming are popular options for non-US residents. Hope that helps! Let me know if you need anything else.
…an interesting and useful discussion! I have also heard that if you are American citizen living abroad (non-US resident) but running a single member US Llc, the moment your entity elects s-corp status, then you must choose “some state” from which to run payroll. Is that actually the case, and if so, then how does one select a state such that state tax liabilities are reduced for both the Llc owner and the s-Corp Llc??? In such situations shouldn’t one run payroll from the state where the LLC was formed in order to reduce possible additional state registrations and annual report fees?
Hey John, excellent followup questions! In terms of where is best for S-Corp election and payroll, we don’t get too detailed on that, due to the nuances and variations with taxes. I recommend speaking with a few accountants. You might want to use this technique. Apologies I couldn’t be more specific.
Hello,
I live in SC and am looking to buy a rental properties (up to 5 properties eventually) in MO. My question is, would I set up a MO LLC for each property? Could I also have another LLC, say for example, a NV LLC to own all the MO LLCs? Would the NV LLC have to register in MO as a foreign entity? Does this seem viable? Thanks.
Hey George, you can put each property in a MO LLC, or clump them together. MO LLCs are quite affordable, so one property per LLC is an option. MO LLCs also do not have Annual Reports. Yes, you can have an out-of-state LLC own the MO LLCs as a holding company. I saw your other comment on the Best State page (https://www.llcuniversity.com/best-state-to-form-an-llc/) re: charging order protection. In that case, I’d take a look at a Wyoming LLC owning your Missouri LLCs. If the out-of-state LLC is just holding the MO LLCs, it does not need to register as a Foreign LLC in MO. Hope that helps.
Hi Matt, I’m looking to form an LLC in Florida and I’m trying to decide if filing an LLC through Legal zoom or doing it myself would be more cost effective. I like the idea of legal zoom to save time but do they include all of my state and city filing fees into the overall cost? If so how much will that be? And going forward will I have to file my state and city fees on my own or does legal zoom handle all of this and you pay them a yearly or monthly fee for their service? Thanks you for all of your videos and everything you do. Is much appreciated, especially for all us start ups that are on a tight budget:)
Hey Talo, thank you for the kind words! When you say state and city fees (that could possibly be recurring), are you only talking about LLC fees? If so, there are no LLC fees paid to a city to form. You pay a one-time fee (not monthly or recurring) to the state. Might you be referring to taxes or something else? LegalZoom’s pricing includes the state filing fee. It’ll be more cost-effective to file yourself of course, but it does take more time, so it’s a trade off. Hope that helps! Let me know if you need anything else.
What happens of you miss the deadline to renew in the state of louisiana?
Hey Kim, each state has different penalties. Louisiana’s is as follows: if you do not file your Annual Report by your anniversary date, the state will mark your LLC as “not in good standing”. If you don’t file your Annual Report for 3 years, the state will administratively revoke (shut down) your LLC. Hope that helps.
I am looking to form a LLC in Michigan, but will be doing work outside of the state, more than likely in Indiana and Illinois, but the cost in Michgan is much less, do I have to file for LLC in those states as foreign being that my home office will be in Michigan? Thanks for the help, love the videos
Hi Jeromy, I’d form the LLC in MI to start, and then dig into what constitutes “doing business” in Indiana and Illinois. “Doing business” can be a bit gray at times, but here are the relevant statutes. Illinois: 805 ILCS 5/13.75 (2014). Indiana: Indiana Code 23-1-49-1 (2014). Hope that helps!
Hello Matt,
I will have 2 companies for buying, selling & renting property in 2 states; NJ & FL(to start). Should I LLC in both states ie., do I HAVE to? And/Or can I go with one of the cheaper states on your list, like PA, OH or AZ?
FYI last year I filed one of the companies in WY Feb 2016 but with job loss, haven’t even done the renewal/annual report yet this year. However, I do plan on rectifying fees, then discontinuing it there based on what you say.
Thanx
CKGOOD
I have not done business on either but am countering an offer for my 1st flip property in NJ & the 2nd here in FL. As well, I moved here from NJ to FL July 2016. I just watched your ‘best state’ video so thanx. However, should I file in FL as domestic “AND” in NJ as foreign or “ONLY” in FL is fine?
So Confused!
Thanx for your help in advance!
Hey CKGOOD, since you’re doing business in NY and FL, you can either form a domestic LLC in both states, or form a FL LLC and register it is a Foreign LLC in NJ. Hope that helps!
Hey CKGOOD, when engaging in real estate investing, you are legally doing business in that state, so you are supposed to form the LLC in the state where the property is located. A more advanced option is to form an LLC in a state with stronger asset protection (like Wyoming), then have your Wyoming LLC own both your NJ LLC and your FL LLC.
Hi Matt,
Thanks for posting this. I am asked to do a corp-to-corp with a company in Indiana. I live in IL (close to the boarder). Should I form in IL or IN? IN looks much cheaper.
Thank You in advance.
Thomas
Hi Thomas, if you’re living in, doing business out of, and paying states taxes in Illinois, you’re supposed to form your LLC there. Forming in Indiana instead is a bit gray, but is done by some. By the books though, and what we recommend, is to form in the state where you are actually doing business. From what you’ve provided, it sounds like you’re doing business out of Illinois. Don’t ask us why their fees are so high. I know it’s a bummer :(
If anyone else is reading this, a “corp-to-corp LLC” (or other entity type), is when an employer offers (or prefers) to pay your LLC instead of you personally. This allows them to pay you as an independent contractor (reported on a 1099) instead of an employee (reported on a W2).
Very helpful post! Thank you! I have a website that I want to make an LLC for personal asset protection. I live in California, but that $800 annual fee is really high for how much revenue my site generates. Can I form in, say, Arizona and avoid the California annual fee? Or would I end up having to pay the California fees anyway?
You’re very welcome Leah! I hear you… the cost of doing business in California is high, but sounds to me like you are doing business there, so yes, you’d end up paying the CA fees anyway. It’ll actually cost you more if you form out of state, since you’ll then be required to file a Foreign LLC in California, as well as fees in the formation state, and possible Registered Agent fees in the formation state as well. I recommend these two articles as followups for more information: Domestic LLC vs Foreign LLC and what is doing business in California. Hope that helps! Let me know if you need anything else.
Hello Matt,
I’m from Sri Lanka & a non-USA resident .
I need to start an eCommerce site. Without EIN how I supposed to pay sales taxes?
What is the suitable state, which has the lower annual maintaining cost, when registration of an LLC is compulsory?
Thanks for publishing this article.
Hey Autumn, you can obtain an EIN, even if you don’t have a US social security number, by mailing or faxing (we recommend fax) Form SS-4 to the IRS and on line 7B write “Foreign”. But make sure only to apply for the EIN after your LLC has been approved. Regarding which state is best, we’re unable to tell you which exact one to go with, but most of our international filers choose the state in the US where they are actually doing business. If they are not physically doing business in any US state, Delaware and Wyoming are popular choices for non-US citizens and non-US residents. Delaware is $90 to form, then $300 every year. Wyoming is $100 to form, then $50 every year. I hope that helps!
Hello Matt,
I will not be presenting physically in Wyoming, in the immediate future. I’m writing from Sri Lanka.
Can I register my business as a LLC , remotely?
Can I pay taxes to IRS remotely?
Regards.
Hi Autumn, yes, you can. You can register the Wyoming LLC remotely. They have online filing. And yes, most taxes can be paid electronically, but you’ll want to double-check with an accountant, just to be sure. Hope that helps.
Aloha Matt! I am looking at starting an LLC staffing company here in Hawaii. I know that I will be moving next year, I am not sure to which state yet. I know I can move my LLC by filling out a foreign LLC form. Which state will I have to pay (if any) annual fees to? Thanks!
Aloha Chris! There are actually 3 ways to move an LLC (depending on the state), but the 2 most common are to dissolve the Hawaii LLC and then form a new LLC in the new state. The second option is to register your Hawaii LLC as a Foreign LLC in the state. If you file a Foreign LLC registration, you still have to remain in good standing in Hawaii and keep the Hawaii LLC active… meaning, you’ll pay Annual Report fees in both states, and depending on what your accountant says, you may need to file a state-level tax return with the Hawaii Department of Taxation and apportion your income to your new state. Hope that helps a bit. I know it’s a little complicated. Feel free to send us an email and leave your phone number. I can explain better by phone if that’s helpful.
Hi Sir,
I am a physician working as an independent contractor, payment via 1099. I am working in Illinois currently. I want to set up an LLC however I will be remaining in IL for another 2 months then moving to PA. I would like to take advantage of the tax benefit for those 2 months without paying double fees. I have an address in PA, can I set up in PA and use the EIN to get paid for the 2 months then move to PA. Essentially make the PA LLC and provide services in IL. It’s a consulting service, I provide medical care. Please let me know. Thanks
Hi Jay, in your situation, I’d setup the Pennsylvania LLC. Having a PA LLC does not prevent you from engaging with clients in other states. Are you required to be licensed by the state to provide this medical care? If so, and depending on PA’s laws, you may need to form a Professional LLC (PLLC) instead of a “regular” LLC.
Besides Wyoming, Delaware, and New Mexico are there any other states that an Anonymous/Invisible LLC can be form?
Hi Paul, yes, there are a few, but we don’t have them listed out yet and I don’t have them memorized. This is a good idea for an article we are considering. Thank you.
good morning, i’m looking into forming an LLC for investment in Asia. I’ll be investing in existing businesses, and i expect to receive profits/returns from those businesses into my LLC. I reside in California, but looking into forming the LLC in Delaware or Nevada. Since I am not conducting business in California, i presume i don’t have to file a foreign LLC in California? Thank you
Hi Andy, it sounds like you’re not doing business in California from what you’ve provided, so no, I don’t believe you’ll need to file a Foreign LLC in California. Having said that, I’d ring up a few attorneys and run over the details with them, just to be sure.
thank you!
You’re welcome Andy!
I have an online business where I provide webdesigning, seo, website promotion, social marketing etc business, I am located in India, I want to setup an LLC in USA, can you suggest me the best and most economical place to start the LLC, I will be operating the business from India, I wont be working in the US. All my work is delivered through email and online.
Hi Anand, we cannot pin-point an exact state for you, but most of the foreigners we work with form their LLC in Wyoming, Delaware, or New Mexico.
Thank you very much. Do you help in forming an LLC and maintaining the legal formalities everyyear?
Hi Anand, we can form the LLC for you, and help you obtain an EIN from the IRS (if you need it for banking). We do not offer annual reports as a service yet, but we provide clear instructions in your Client File. You can learn more about our filing services here.
Do you know anything about self directed IRA’s and LLC’s.. specifically… how does the Franchise Tax in Texas effect that… since IRA’s pay zero Tax. Wondering what state I should set up my SDIRA LLC in?
Hi David, we do. If you’re purchasing an asset, such as real estate, it’s best to form your IRA/LLC in the state where the asset is located. If not, it’s generally advisable to form the IRA/LLC in the state where you reside. Since the LLC is owned by your IRA (more specifically, your custodian for your benefit) and your LLC is its own entity, it’ll still need to file the franchise tax report.
Hi pls I live in Nigeria and i want do Dropshipping business using bigcommerse to sell the product online in USA. Therefore I need to register my business as llc in order yo run this business.
Pls what is your advise. Tanks
Hi Abdulrashid, there are no us-citizenship or us-residency requirements to forming an LLC in the US. If you have a friend or family member located in the US, that state may be a good option. If you don’t know anyone in the US, the 2 most popular states we see foreigners using are Wyoming ($100 to form/$50 per year) and Delaware ($90 to form/$300 per year). You’ll need the services of a Registered Agent in order to get a street address in either state. We offer these services and we also have recommendations on other companies as well. Since this comment section is not that large, I can send you more information if you send us an email here.
Hi Matt,
I was googling for information on LLC and found your article very useful. I have some questions however. Currently I already have incorporated a LLC in Delaware, which I used for doing ecommerce online, by the way I am a non-US resident. However I missed the deadline for paying the tax (June 01) and if I am to pay the tax now, it will cost me an extra penalty of $200, which sum up to $500+. The cost is too expensive and I am looking to change the LLC to another state. Can I do this? Can I just ignore the tax and let the Delaware state removed the current LLC from their records? Or do I need to approach the Delaware state and send in a request to remove this current LLC from their records? I would then like to incorporate this LLC (with the same name) in another state with a lower yearly maintenance tax cost. Is this legally allowed? I see that you mentioned “New Mexico, Delaware, and Wyoming are popular options for non-US residents” in your replies above. Also, when I incorporated a LLC in a state, can I have the mailing address (for sending and receiving some parcels and letters for the LLC) in another state? Or I need the mailing address to be in the same state? Thanks for the advise.. :)
Hey Mattew, with Delaware, it’s best practice not to let the LLC just sit, as it will accrue penalties and interest. The tax is $300 per year, the penalty is $200 per year, and the 1.5% monthly interest comes out to about $90 per year. If you let the LLC just sit, after 3 years, the state will revoke the LLC and the $1,770 becomes a debt owed to the state. The state has the right to collect this debt. There is some ambiguity as to how that debt is collected and if it actually does get collected, but again, the state has the legal right to settle the debt.
The cleaner way to do things, is to file an LLC Dissolution (instructions here). The Dissolution itself is $200, plus you have to pay any unpaid franchise tax + penalties (so roughly $700 total in your case).
You can certainly form an LLC in another state (with the same name), but this is not “changing” or “moving” the LLC. It’s simply shutting down one legal entity in Delaware and forming another legal entity in another state. And yes, this is legal.
I recommend considering forming the new LLC under a slightly different (or completely different) name. This will help you keep things more organized when it comes to logistics and paperwork.
In most states, the only “in state” address that is needed will be the Registered Agent address. Your mailing address can be located in any state. The Registered Agent address will be used for legal and court mail, called Service of Process (and hopefully you don’t get a lot of that). The mailing address is where parcels and letters for your LLC will be sent.
p.s. The proper verb to use is “form” an LLC, not “incorporate”. Incorporate means to form a Corporation.
Hope that helps. Let me know if you have any followup questions.
Hi there. I want to form a LLC. My business is mainly consulting as I’m a business coach. I won’t have a office. I currently live in New Jersey and want to know if I can form a LLC in another state that is cheaper or do I have to form in NJ. Most of business will be done in NJ.
Thanks
Hi Ilsy, although you don’t have an office, you’ll likely be working from home, or somewhere from New Jersey. In that case, you are legally doing business in New Jersey, and you should form your LLC there. Forming an LLC out of state to save money could end up being much more expensive, as you’ll need to file a Foreign LLC registration in New Jersey and you’ll be paying LLC fees (and annual fees) in 2 states. We wrote more details about this here.
Hi, I want to form an LLC to transfer a vacation home in KY to leave it to my children and grandchildren. I see that the annual fee in KY is now $175/year. I am wondering that since my LLC is not really going to do business nor creating income, maybe I should form it in another state that has a lower or zero annual fee, and let it own the property in KY. I’m not sure though, can you please explain further? You can email me too. Thanks.
Hi Joe, if you want to pass a property onto children and grandchildren, we recommend speaking with an estate lawyer. The LLC certainly provides liability protection, but you may want to couple it with a trust for example, in order to help mitigate taxes. Regarding filing out of state, if the property is not generating revenue, you should be okay to hold title in an out-of-state LLC (since the LLC is not “doing business” in KY), but you’ll need to speak with an attorney to confirm this as the “doing business” laws can be a bit ambiguous and open-ended… and they vary from state to state. Apologies we couldn’t be more specific here, but I hope that helps a bit.
Hey Matt – thanks for the excellent article.
You’re welcome Dave!
Thank you for answering my question with your chart! It looks like you’ve helped many people- great!
You’re welcome Mary!
Hi,
First of all, thanks for all the great advice!
I am a non US resident and looking to open an LLC in Delaware or Arizona.
My main purpose (online payment gateway) does not require me to travel to that state for business. The only thing I need is a bank account.
I travel to california often and could i open the bank account on behalf of the company in California or would I need to travel to Delaware/Arizona for that purspose?
Hi Ramit, in order to open a Delaware or Arizona bank account from California, first, make sure your desired bank has locations in both states. Then call the location you would go to in California and ask them about opening a Delaware or Arizona account from their California branch office. Let them know that you formed an LLC in either Delaware or Arizona. Hope that helps.
If the properties are out of USA and not generating any revenue for the time being, would I pay taxes for these if I register llc in New Mexico for example and register these properties under this llc?
Thanks a bunch :-)
Hi Jeff, I’m not 100% sure on this one. Please speak with an accountant.