Articles

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

Important: Just because certain states have lower fees does not mean you should form there! It could end up costing you a lot more money. You could end up illegally doing business in your home state and having to file 2 LLCs (a Domestic LLC and a Foreign LLC). If you haven’t seen our “best state” video yet, make sure to check it out: What’s the Best state to form an LLC?

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 LLCLLC Filing FeeLLC Annual FeeDuePayable To & Form Name
Alabama LLC$183$100 minimum2.5 months after formationAL Department of Revenue, Initial Business Privilege Tax Return
Alaska LLC$250$100Biennial, January 2ndAK Department of CCED, Biennial Report
Arizona LLC$50$0No annual fee + no report dueN/A, N/A
Arkansas LLC$50$150Annual, May 1stAR Secretary of State, Franchise Tax Report
California LLC$70$800 + $20VariousCA Franchise Tax Board, Annual LLC Franchise Tax + Stmt. of Information
Colorado LLC$50$105 month window surrounding
anniversary month
CO Secretary of State, Periodic Report
Connecticut LLC$160$20Annual, anniversary dateCT Secretary of State, Annual Report
Delaware LLC$90$300Annual, June 1stDE Dept. of State, Annual Franchise Tax
Florida LLC$125$138.75Annual, May 1stFL Department of State, Annual Report
Georgia LLC$100$50Annual, April 1stGA Secretary of State, Annual Registration Fee
Hawaii LLC$50$15During quarter of anniversary dateHI Business Registration Division, Annual Report
Idaho LLC$100$0 (must file an information report, no fee though)Annual, anniversary monthID Secretary of State, Annual Report
Illinois LLC$500$250Annual, anniversary monthIL Secretary of State, Annual Report
Indiana LLC$90$50 (by mail) or $31 (online)Biennial, anniversary monthIN Secretary of State, Business Entity Report
Iowa LLC$50$45Biennial, April 1st of odd yearsIA Secretary of State, Biennial Report
Kansas LLC$165$55Annual, April 15thKS Secretary of State, Annual Report
Kentucky LLC$40$15Annual, June 30thKY Secretary of State, Annual Report
Louisiana LLC$100$35Annual, anniversary monthLA Secretary of State, Annual Report
Maine LLC$175$85Annual, June 1stME Secretary of State, Annual Report
Maryland LLC$100$300Annual, April 15thMD State Dept. of Assessments, Personal Property Tax
Massachusetts LLC$500$500Annual, anniversary monthMA Secretary of the Commonwealth, Annual Report
Michigan LLC$50$25Annual, February 15thMI Dept. of LARA, Annual Report
Minnesota LLC$160$0 (must file an information report, no fee though)Annual, December 31stMN Secretary of State, Annual Report
Mississippi LLC$50$0 (must file an information report, no fee though)Annual, April 15thMS Secretary of State, Annual Report
Missouri LLC$105$0No annual fee + no report dueN/A, N/A
Montana LLC$70$20Annual, April 15thMT Secretary of State, Annual Report
Nebraska LLC$105$10Biennial, April 1st of odd yearsNE Secretary of State, Biennial Report
Nevada LLC$75$500$150 due month of filing. $350 annually, anniversary monthNV Secretary of State, Annual List of Members
New Hampshire LLC$100$100Annual, April 1stNH Secretary of State, Annual Report
New Jersey LLC$125$53Annual, anniversary monthNJ Department of Treasury, Annual Report
New Mexico LLC$50$0No annual fee + no report dueN/A, N/A
New York LLC$200$9Biennial, anniversary monthNY Department of State, Biennial Statement
North Carolina LLC$125$200Annual, April 15thNC Secretary of State, Annual Report
North Dakota LLC$135$50Annual, November 15thND Secretary of State, Annual Report
Ohio LLC$99$0No annual fee + no report dueN/A, N/A
Oklahoma LLC$100$25Annual, anniversary monthOK Secretary of State, Annual Certificate
Oregon LLC$100$100Annual, anniversary monthOR Secretary of State, Annual Report
Pennsylvania LLC$125$70Every 10 yearsPA Department of State, Decennial Report
Rhode Island LLC$150$50Annual, September 1st - November 1stRI Secretary of State, Annual Report
South Carolina LLC$110$0No report due unless you file taxes as an S-CorpN/A, N/A
South Dakota LLC$150$50Annual, anniversary monthSD Secretary of State, Annual Report
Tennessee LLC$300$300 minimumAnnual, April 1stTN Secretary of State, Annual Report
Texas LLC$300$0Annual, May 15thTX Comptroller, Public Information Report + Franchise Tax
Utah LLC$70$15Annual, anniversary monthUT Department of Commerce, Annual Report
Vermont LLC$125$35Annual, March 15thVT Secretary of State, Annual Report
Virginia LLC$100$50Annual, anniversary monthVA Corporation Commission, Annual Registration Fee
Washington LLC$180$81Initial $10, within 120 days of filing. $71 annual, anniversary month.WA Secretary of State, Annual Review + Business License Renewal
Washington D.C. LLC$220$300Initial April 1st, then Biennial April 1stDCRA, Initial Report + Biennial Report
West Virginia LLC$100$25Annual, July 1stWV Secretary of State, Annual Report
Wisconsin LLC$130$25Annual, anniversary quarterWI Secretary of State, Annual Report + Business Tax Registration
Wyoming LLC$100$50 minimumAnnual, anniversary monthWY 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.

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Matt Horwitz
Founder & Educator at LLC University

Forming an LLC shouldn’t be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! We teach people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your entrepreneurial journey.


Leave a Comment (116) ↓

116 Comments

  1. Nitin Handa February 2, 2017

    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.

    reply
    • Matt Horwitz February 2, 2017

      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.

      reply
      • Cris Sal August 7, 2017

        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.

        reply
        • Matt Horwitz August 7, 2017

          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.

          reply
          • Lisbeth November 30, 2017

            Doesn’t look like it’s cheaper based off the table….esp if you are forming a small business…

            reply
            • Matt Horwitz December 12, 2017

              You’re right Lisbeth… just looking at the table, California certainly doesn’t look cheaper. But if you live and reside in California, it is cheaper to form an LLC in California instead of forming an LLC in another state and then having to register as a Foreign LLC. Plus, you’ll also have to pay for a Registered Agent in the other state, increasing the fees. Additionally, there could be tax consequences. We’ve explained all this in more detail on another page on our website: best state to form an LLC. Hope that helps!

              reply
    • Gary Mitchell November 30, 2017

      I would like to consider Arizona as my state to file my LLC.

      reply
      • Gary Mitchell November 30, 2017

        CAN YOU PLEASE ADVISE ME ON LLC IN ARIZONA SINCETHOSE FEES SEEM TO BE THE LOWEST. THANK YOU.

        reply
        • Matt Horwitz December 12, 2017

          Hi Gary, can you be more detailed in your question? I’m not 100% sure what you are asking. Thanks.

          reply
      • Matt Horwitz December 12, 2017

        Hey Gary, if you reside in the US, I recommend checking out our other article to help you choose the state. Here’s the link: best state for LLC.

        reply
  2. RD February 5, 2017

    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

    reply
    • Matt Horwitz February 5, 2017

      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.

      reply
      • JohnA March 18, 2017

        …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?

        reply
        • Matt Horwitz March 20, 2017

          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.

          reply
  3. George February 20, 2017

    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.

    reply
    • Matt Horwitz February 20, 2017

      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.

      reply
  4. Talo February 22, 2017

    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:)

    reply
    • Matt Horwitz February 22, 2017

      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.

      reply
  5. Kim March 2, 2017

    What happens of you miss the deadline to renew in the state of louisiana?

    reply
    • Matt Horwitz March 2, 2017

      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.

      reply
  6. Jeromy March 15, 2017

    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

    reply
    • Matt Horwitz March 15, 2017

      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!

      reply
  7. CKGOOD March 16, 2017

    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

    reply
    • CKGOOD March 16, 2017

      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!

      reply
      • Matt Horwitz March 17, 2017

        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!

        reply
    • Matt Horwitz March 17, 2017

      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.

      reply
  8. Thomas March 23, 2017

    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

    reply
    • Matt Horwitz March 23, 2017

      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).

      reply
  9. Leah March 30, 2017

    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?

    reply
    • Matt Horwitz March 30, 2017

      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.

      reply
  10. Autumn Wind March 31, 2017

    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.

    reply
    • Matt Horwitz March 31, 2017

      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!

      reply
      • Autumn Wind April 7, 2017

        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.

        reply
        • Matt Horwitz April 7, 2017

          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.

          reply
  11. Chris April 26, 2017

    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!

    reply
    • Matt Horwitz April 26, 2017

      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.

      reply
  12. Jay April 29, 2017

    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

    reply
    • Matt Horwitz May 2, 2017

      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.

      reply
  13. Paul Paquette May 20, 2017

    Besides Wyoming, Delaware, and New Mexico are there any other states that an Anonymous/Invisible LLC can be form?

    reply
    • Matt Horwitz May 22, 2017

      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.

      reply
  14. andy May 22, 2017

    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

    reply
    • Matt Horwitz May 22, 2017

      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.

      reply
      • andy May 23, 2017

        thank you!

        reply
        • Matt Horwitz May 24, 2017

          You’re welcome Andy!

          reply
  15. Anand Mehta May 24, 2017

    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.

    reply
    • Matt Horwitz May 24, 2017

      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.

      reply
      • Anand Mehta May 25, 2017

        Thank you very much. Do you help in forming an LLC and maintaining the legal formalities everyyear?

        reply
        • Matt Horwitz May 25, 2017

          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.

          reply
  16. David Alexander June 2, 2017

    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?

    reply
    • Matt Horwitz June 2, 2017

      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.

      reply
  17. Abdulrashid June 4, 2017

    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

    reply
    • Matt Horwitz June 5, 2017

      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.

      reply
  18. Mattew June 8, 2017

    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.. :)

    reply
    • Matt Horwitz June 8, 2017

      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.

      reply
  19. Ilsy June 22, 2017

    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

    reply
    • Matt Horwitz June 23, 2017

      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.

      reply
  20. Joe June 24, 2017

    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.

    reply
    • Matt Horwitz June 26, 2017

      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.

      reply
  21. Dave July 3, 2017

    Hey Matt – thanks for the excellent article.

    reply
    • Matt Horwitz July 4, 2017

      You’re welcome Dave!

      reply
  22. Mary K Smith July 4, 2017

    Thank you for answering my question with your chart! It looks like you’ve helped many people- great!

    reply
    • Matt Horwitz July 4, 2017

      You’re welcome Mary!

      reply
  23. Ramit July 5, 2017

    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?

    reply
    • Matt Horwitz July 6, 2017

      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.

      reply
  24. Jeff August 2, 2017

    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 :-)

    reply
    • Matt Horwitz August 2, 2017

      Hi Jeff, I’m not 100% sure on this one. Please speak with an accountant.

      reply
  25. Robert September 1, 2017

    Hey there Matt, I already have a California based LLC for one of my businesses. I am also doing income properties out in PA and wanted to have such properties and business actions separate within it’s own LLC. Would I be setting up a PA LLC and since a large majority of business is done in that state, would I not have to register that LLC in CA?

    reply
    • Matt Horwitz September 1, 2017

      Hey Robert, you are correct. Since you are doing business in Pennsylvania, you’d form a Pennsylvania LLC. Rule of thumb for real estate LLCs is to form the LLC where the property is located.

      reply
  26. Ray September 8, 2017

    Hey Matt, i formed an LLC in NYS as i was planning to buy a rental property.I bought an investment property but have not put it under the LLC yet..Are there any fees i have to pay yearly? The LLC has not made any income yet..

    reply
    • Matt Horwitz September 8, 2017

      Hey Ray, did you take care of the newspaper publication requirement? The Certificate of Publication with the state will cost you $50 and then there will be the newspaper fees. The ongoing costs for your LLC in NYS will be the Biennial Statement, which is $9 and it’s due every 2 years by the end of your LLC’s anniversary month. You’ll also need to take care of your taxes (federal, state, and local).

      reply
  27. Lenny September 15, 2017

    Hello Matt,
    My wife and i bought a vacation rental in North Carolina, but live in Vermont. Would it benefit us more to start the LLC here in our home state or In the State the property is located in? WE do hope to add other properties in this state and possibly other’s, so with the future in mind would it be better to set it up in another state and have them own the other LLC’S as we purchase additional properties? Thank you for help.

    reply
    • Matt Horwitz September 15, 2017

      Hi Lenny, for real estate LLCs, you should form the LLC in the same state where the property is located. The reason why is that is the jurisdiction where you are legally doing business. In your case, that means to form the LLC(s) in North Carolina. Another option as your portfolio grows is to form a parent LLC, and then have that LLC own each of the real estate LLCs. The parent LLC is just a holding company so it will not legally be doing business in any state. Therefore, the state you choose for the parent company is flexible. Hope that helps :)

      reply
      • Lenny September 16, 2017

        Thank you very much for your help!

        reply
        • Matt Horwitz September 17, 2017

          You’re welcome Lenny!

          reply
  28. dorian September 18, 2017

    Hi Matt. I currently live in two states and plan to conduct business from my computer. I could be in one state or another depending on the day of the week. Does it matter where I should operate an LLC?

    reply
    • Matt Horwitz September 19, 2017

      Hi Dorian, what are the two states? Which state is technically your residence and what state do you file taxes in? Do you own property in either state?

      reply
      • dc September 19, 2017

        my residence is fl. i work in fl but i also live in in a house in ga on weekends where my wife reside. she owns the house in ga

        reply
        • dc September 19, 2017

          I could do business in either place since I am mobile.

          reply
          • Matt Horwitz September 21, 2017

            Hey Dorian, in your case, you can pick either state you’d like. Won’t make much of a difference. Hope that helps!

            reply
  29. Yanina September 26, 2017

    Hi there, I am a foreing person, with no residence or citicenship in USA; but have my sister living there in Misisipi.
    Nowadays I live in Argentina where I have my company, i import my own products from China and sell them to wholsellers from all over my country.
    I would like to stablish my LLC in USA , through with i can receive products from China ( Import in USA) and distibute them in different states where they would be require.
    Should I open a single person LLC, with my sister? is there any state better to submit an LLC for importing ( near a port) hope my doubt can be replied.
    Thank you!

    reply
    • Matt Horwitz September 27, 2017

      Hi Yanina, I don’t work in import/export, so I’m not 100% sure if Mississippi is the best state for your. If you are doing a lot of business in a port state, you may need to register your Mississippi LLC in that state as what’s called a Foreign LLC. That’s common though and not a big deal. It might be a good idea to form the LLC in Mississippi and have your sister serve as the LLC’s Registered Agent (that will save some money). You can make your sister a member of the LLC if she’s working helping in the business, but you don’t have to.

      reply
  30. Nancy Echeverria October 6, 2017

    Hi Matt,

    I live in Texas, and want to start an LLC here. I was looking at the table you provided, and I am just a bit confused. In the second column it says that there is not an annual fee, but in the third column, it says “Annual, May 15th.” Could you please clarify this for me? Thanks.

    reply
    • Matt Horwitz October 6, 2017

      Hi Nancy, there is only an annual fee due if your gross receipts are over $1M. You still need to file a franchise tax report (likely zeroed out) and a public information report (PIR) each year, hence the due date. Hope that helps!

      reply
  31. Tony Allen October 17, 2017

    Hello Matt, I came across your video while trying to conduct research on forming an LLC for Uber/Lyft. I live in California and know nothing/can’t find anything about forming an LLC for uber/lyft, can you point me in the right direction and/or provide me with information? Thanks in advance.

    reply
    • Matt Horwitz October 17, 2017

      Hi Tony, I sent an email to Lyft for instructions so I’ll let you know when I hear back. I could not find a contact form for Uber. After you form your LLC and obtain a Federal Tax ID Number, I would imagine you’d need to update your driver accounts to show the reflection of the new LLC name and Tax ID Number (as opposed to reporting via your SSN). Do you have a phone number you can call as an Uber driver? I’d be curious to hear what you come up with.

      reply
      • Matt Horwitz October 18, 2017

        Hey Tony, I heard back Lyft support. You’ll need to send them a new W9 with your LLC info and EIN. Shoot us a message if you need help with the W9 after your LLC is formed. We’ll be working on a Lyft/Uber guide soon. So I’ll let you know when it’s out. In the meantime, hit me up if you hear back from Uber. I still haven’t found a way to email them yet.

        reply
  32. Theresa October 17, 2017

    Hi Matt, I am in CO, though a resident of a different state. I want to start online sales/ fulfillment. I have a non-US family investor, but would like to form SMLLC. This is going to be my first business and I am reading everywhere of the legal protection issues with SMLLC. Would it be enough to form SMLLC in CO? Would it be smarter to form a parent SMLLC in WY and sub in CO? Holding SMLLC in WY and operating one in CO? Another factor: I will be moving out of CO in a couple years and then again and again. I want to make it right for the long run. I understand there is cost coming with filing in more than one statE. Thank you!

    reply
    • Matt Horwitz October 18, 2017

      Hey Theresa, great questions. The whole LLC owned by you vs. LLC owned by another LLC, then owned by you is a tough one. As in, the answer is not black and white. The WY LLC as parent company is a strong setup, but many attorneys feel it’s overkill. I sway one way or the other depending on the specifics of the situation and the organization/intellectual abilities of the owner. You could go either way… straight CO LLC, or WY LLC owning your CO LLC. I don’t think either setup is “wrong”. You could also consider just a straight WY LLC in your case as well. Apologies I couldn’t pinpoint the answer more specifically for you.

      reply
  33. Theresa October 17, 2017

    Another question: if I go manager-managered SMLLC, and hire myself as the manager, I become employed, right? I can’t be taxed as disregarded entity( sole proprietor)? Do I have to choose to be taxed as S-corporation? Thank you once again.

    reply
    • Matt Horwitz October 18, 2017

      No, not necessarily. Just being a Manager of an LLC does not mean you are employed. Employed means you received payroll from the LLC and a W2. It doesn’t matter how the LLC is managed (Manager-managed or Member-managed), you’ll still be taxed as a Disregarded Entity/Sole Proprietorship, since the LLC still just has one owner (unless you file/elect to be taxed as an S-Corp or C-Corp). You don’t HAVE TO elect S-Corp tax status though. That’s completely optional. I like the SMLLC Manager-Managed setup as it adds a tad more privacy… and I think it sounds more bad ass to be the Manager instead of a Member (but that’s a minor detail).

      reply
  34. George October 18, 2017

    Hi Matt,

    I live in Massachusetts and I wanted to create a self-directed IRA with an LLC to invest (trade) in cryptocurrencies (bitcoin, etc.). The trades will be done through exchanges. Do I need to form the LLC in my home state? Could I do that in other states?

    Thanks.

    reply
    • Matt Horwitz October 18, 2017

      Hi George, sounds like a great setup. Regarding legally “doing business” in Mass., this is a bit gray, and I cannot locate a clear answer in the statutes. Technically, you are likely doing business in Massachusetts, but I’m not sure how risky it would be to form and out-of-state LLC and not register it as a Foreign LLC in Mass. Feel free to use our “knights of the roundtable” strategy and phone a few attorneys. I’d love to hear what you come up with, so feel free to keep me posted. Apologies I couldn’t give you a more clear-cut answer.

      reply
  35. ahmad k October 24, 2017

    im non residence, I want to setup llc in Idaho , and start my small business.
    its a good option to do that !

    Regards

    reply
    • Matt Horwitz October 25, 2017

      Hi Ahmad, as a non-resident, you can pick any state you’d like. Best wishes with the business!

      reply
  36. cc October 29, 2017

    For Nevada LLC I saw through legalzoom that capital gains is not taxed. I have a home in MA that was sold and I did not have any homestead exemption claim. Can I start an LLC in Nevada and claim the sale of home under the LLC to bypass capital gains tax for a home outside of Nevada?

    reply
    • cc October 29, 2017

      and thanks again for being so proactive in answering questions! Much appreciated!

      reply
      • Matt Horwitz October 29, 2017

        You’re welcome Carla! And thank you for acknowledging :)

        reply
    • Matt Horwitz October 29, 2017

      Hi Carla, please run this by an accountant or two to double-check, but I doubt it. First, the home was already sold. Second, it was sold in your name. Forming an LLC to “retro sell” the home will not fly. And third, the statement regarding capital gains tax may only apply to assets located in Nevada. Hope that helps.

      reply
  37. Latasha October 30, 2017

    If I form an LLC the beginning of the year. When do I need to pay the renewal. Looks like it says May is when the renewal is needed yearly. Florida. * I believe that if I form the LLC now then I will for sure have to renew in May is that also correct?

    reply
    • Matt Horwitz October 30, 2017

      Hi Latasha, if you form the Florida LLC in 2017, then your first LLC Annual Report will be due between January 1st and May 1st of 2018. Hope that helps.

      reply
  38. Jorge November 7, 2017

    Hello Matt,

    My sister, my wife and me are starting a business. While we live in California, my sister does so in Texas.

    The business will operate in California. Given this my inclination is to do a CA LLC. What is the impact for my sister? I am not clear as to what she would need to do since she lives in Texas and her full time job is in Texas.

    Also does it mean that she would need to file a CA tax return every year? In a addition to what she normally does in TX? – federal that is since there so no state income tax there.

    Thanks

    reply
    • Matt Horwitz November 8, 2017

      Hey Jorge, since you are doing business in California, I would form the LLC there. Yes, you’ll need to file a CA tax return, and all members may need to as well. I recommend speaking with an accountant about your sister’s situation, as there is a chance she may need to file a return in CA as well, but I’m not 100% sure. Apologies I couldn’t be more specific.

      reply
  39. Eli November 8, 2017

    Hello Matt,

    I am a Member in a LLC (A) which is a 25% member in another LLC (B). That LLC owns an investment property in CA. If I am a resident of NY and so are all the members of LLC (A) do I need to open the LLC (A) in CA or NY? Also, Would LLC (A) be filing a CA return or only the actual LLC (B) which owns the property?

    reply
    • Matt Horwitz November 9, 2017

      Hey Eli, “LLC B” should be formed in California since that’s where the business is taking place and legally operating. “LLC A” could probably be opened in CA or NY, but it seems best to keep it in NY, since that’s where you and your business partners are doing business from (phone calls, meetings, computer work, etc.) As to whether or not “LLC A” (or the members of LLC A) owe any returns to the CA Franchise Tax Board, I cannot say, and I honestly do not know. We are not able to offer tax advice as there is far too much variance among businesses and their owners, as well as a multitude of differences in ways the business (and its members) can file. I recommend applying our “knights of the roundtable” strategy and making a few phone calls. Apologies I couldn’t be more specific. I’m curious to hear what you come up with though, so feel free to send an update if you’d like.

      reply
  40. Rae November 10, 2017

    Hello Matt:
    I currently live in Florida and will be purchasing Tax Deeds in Florida. In a couple of years, I plan to full-time RV and may purchase Tax Deeds in other states. Should I create my initial LLC in Florida where I plan to purchase Tax Deeds for the next couple of years and then create an LLC in Wyoming as a parent LLC for properties purchased in other states?

    reply
    • Matt Horwitz November 13, 2017

      Hey Rae, I think that is an excellent setup! To keep things consistent, I’d actual create your Wyoming LLC first, then form an LLC in Florida (owned by your Wyoming LLC). This way, your structure and organization will all be consistent from the start. Hope that helps!

      reply
  41. Alex November 11, 2017

    what about for an over the road trucker I live in Ma but i operate in lower 48 states do I have to form my llc in Ma or can I form it in any state?

    reply
    • Matt Horwitz November 13, 2017

      Hey Alex, I’d form your LLC in the state where you hold your CDL, so if that’s Mass., then forming there will be best. Hope that helps!

      reply
  42. CHarles November 23, 2017

    I’m planning a online retail store. I see that Nevada is a popular LLC state choice. But when I look at the the state chart , it says $500 annual fee. New Mexico has no annual fee. So which is better to save money?

    Thanks

    reply
    • Matt Horwitz November 23, 2017

      Hey Charles, it’s best to form your LLC in the state where you are doing business from, which is likely your home state. We have more info on this here: best state to form an LLC. Hope that helps.

      reply
  43. Robtroilo November 28, 2017

    Hey there,

    I am forming a domestic LLC in Mass, the filing fee is $500. The annual fee is also $500. if i create this LLC in December does that mean i have to pay the annual fee for both 2017 and 2018? I see it says anniversary month so does that mean it would be due before December of 2018? Let me know!

    Thanks,
    Rob

    reply
    • Matt Horwitz November 29, 2017

      Hey Rob, if your Massachusetts LLC is approved in December of 2017 (say 12/15, for example), your first first Annual Report is not due until that same day (12/15) of 2018… so no, you won’t file an Annual Report in 2017. Hope that helps!

      reply
  44. Robert Troilo December 1, 2017

    Matt,

    Great!

    Thanks for the help!

    reply
    • Matt Horwitz December 12, 2017

      You’re welcome Robert!

      reply
  45. Chrissy December 6, 2017

    Hi,
    What if I am starting an online business and will be doing business mainly. Would I still be required to register in my state or can I register in another state? Technically I will be doing business in several states, right?
    Thank you for your help and insight on this?

    reply
    • Matt Horwitz December 12, 2017

      Hey Chrissy, it comes down to where you are legally doing business. And it doesn’t matter where your customers/clients are located, or if you have an online business (so many businesses are online businesses these days)… it has to do with where you are running/working/operating/managing the LLC from. For most people, this will be the state where they live and legally reside, especially for those running online businesses from their home. Hope that helps add some context to the situation. Let me know if you have any followup questions.

      reply

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