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Note: Some fees mentioned in the video above have changed. Make sure to reference the table below for the most accurate information.
The table below shows LLC annual fees by state.
As of 2023, the average LLC annual fee in the US is $91.
Most states call the LLC annual fee requirement 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.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(check out Northwest vs LegalZoom)
LLC Annual Fees (as of 2023):
| State LLC | LLC Filing Fee | LLC Annual Fee | Due | Payable To & Form Name |
|---|---|---|---|---|
| Alabama LLC | $200 | $50 minimum | 2.5 months after formation and annually by April 15 | AL Department of Revenue, Initial Business Privilege Tax Return |
| Alaska LLC | $250 | $100 | Biennial, January 2 | AK Department of CCED, Biennial Report |
| Arizona LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| Arkansas LLC | $45 | $150 | Annual, May 1 | AR Secretary of State, Franchise Tax Report |
| California LLC | $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 | $120 | $80 | Annual, March 31 | CT Secretary of State, Annual Report |
| Delaware LLC | $90 | $300 | Annual, June 1 | DE Dept. of State, Annual Franchise Tax |
| Florida LLC | $125 | $138.75 | Annual, May 1 | FL Department of State, Annual Report |
| Georgia LLC | $100 | $50 | Annual, April 1 | 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 | $150 | $75 | Annual, anniversary month | IL Secretary of State, Annual Report |
| Indiana LLC | $95 | $30 | Biennial, anniversary month | IN Secretary of State, Business Entity Report |
| Iowa LLC | $50 | $30 | Biennial, April 1 of odd years | IA Secretary of State, Biennial Report |
| Kansas LLC | $160 | $50 | Annual, April 15 | KS Secretary of State, Annual Report |
| Kentucky LLC | $40 | $15 | Annual, June 30 | 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 1 | ME Secretary of State, Annual Report |
| Maryland LLC | $100 | $300 | Annual, April 15 | 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 15 | MI Dept. of LARA, Annual Report |
| Minnesota LLC | $155 | $0 (must file an information report, no fee though) | Annual, December 31 | MN Secretary of State, Annual Report |
| Mississippi LLC | $50 | $0 (must file an information report, no fee though) | Annual, April 15 | MS Secretary of State, Annual Report |
| Missouri LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| Montana LLC | $20 | Annual, April 15 | MT Secretary of State, Annual Report | |
| Nebraska LLC | $100 | $13 | Biennial, April 1 of odd years | NE Secretary of State, Biennial Report |
| Nevada LLC | $425 | $350 | Annually, anniversary month | NV Secretary of State, Annual List of Members + Business License |
| New Hampshire LLC | $100 | $100 | Annual, April 1 | NH Secretary of State, Annual Report |
| New Jersey LLC | $125 | $75 | 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 15 | NC Secretary of State, Annual Report |
| North Dakota LLC | $135 | $50 | Annual, November 15 | 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, February 1 - May 1 | RI Secretary of State, Annual Report |
| South Carolina LLC | $110 | $0 | No report due unless LLC files 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 1 | TN Secretary of State, Annual Report |
| Texas LLC | $300 | $0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year) | Annual, May 15 | TX Comptroller, Public Information Report + Franchise Tax |
| Utah LLC | $54 | $18 | Annual, anniversary month | UT Department of Commerce, Annual Report |
| Vermont LLC | $125 | $35 | Annual, March 15 | VT Secretary of State, Annual Report |
| Virginia LLC | $100 | $50 | Annual, anniversary month | VA Corporation Commission, Annual Registration Fee |
| Washington LLC | $200 | $60 | Annual, anniversary month | WA Secretary of State, Annual Report |
| Washington DC LLC | $99 | $300 | Biennial, April 1 | DCRA, Biennial Report |
| West Virginia LLC | $100 | $25 | Annual, July 1 | WV Secretary of State, Annual Report |
| Wisconsin LLC | $130 | $25 | Annual, anniversary quarter | WI Secretary of State, Annual Report |
| Wyoming LLC | $100 | $60 minimum | Annual, anniversary month | WY Secretary of State, Annual Report |
LLC Annual Fees FAQs
Which state has the lowest LLC fees?
The following states don’t have Annual Report fees:
- Arizona
- Idaho
- Minnesota
- Mississippi
- Missouri
- New Mexico
- Ohio
- South Carolina (unless you file as an S-Corp. However, this is rare.)
- Texas
Note: Most Texas LLCs don’t have to pay an annual fee. This is because most Texas LLCs make less than $1,230,000 per year.
However, many states require other ongoing fees to conduct business in the state – like annual business license filing fees.
Additionally, local requirements at the city, state, and county levels may also mean your LLC has ongoing costs separate from any annual report fee requirements.
We recommend checking with your local municipality to see if your Limited Liability Company needs to pay for business licensing – or any other associated fees – at the local level.
Do I have to update my Operating Agreement annually?
No, you don’t have to update your Operating Agreement annually.
An Operating Agreement is an internal document, meaning that you simply keep it with your business records. You don’t have to file your Operating Agreement with the Secretary of State or any other state or federal agency.
That said, you should update your Operating Agreement if you change any of the processes that it governs, like how your business will distribute profits, rules around adding a new LLC Member, and who will be the responsible party for any payroll or tax purposes.
If you need an Operating Agreement for your Limited Liability Company, we offer free LLC Operating Agreement templates.
What are the benefits of an LLC?
The first benefit of an LLC is LLC asset protection. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.
This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities of the business.
This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more common business structure than a Sole Proprietorship or Partnership.
Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members report and pay the taxes on their personal tax return.
To learn more, please see How are LLCs Taxed.
How to start an LLC step-by-step:
Here are the steps to start an LLC:
Choose an LLC name and make sure it’s available- Choose who will be your Registered Agent
- File the LLC Articles of Organization
- Complete and sign an LLC Operating Agreement
- Get a Tax ID Number (EIN) from the IRS
- Open an LLC bank account
- Check whether you need a business or sales tax license
We’ll walk you through it all, step-by-step.
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
Hi,
I am from Afghanistan. I wanna create a LLC. How can I do it and how many price I should pay for it.
Thanks.
Hi Matt,
I am glad I stumbled upon your YouTube videos. I am in the process of structuring a real estate investing business and also being a real estate agent. I am in Florida and was looking into the well advertised Delaware LLC. I saw your video and put a pause on that. Would it be best to have 2 LLCs, one for investing and another for real estate agency purposes? How do I make sure my investing LLC is under SCorp tax for business procedures? Thanks for all the good info.
hi matt
i want to put my property from personal to llc in california, Do i have to report every year something to state? sos ? or biennial ?other than llc fee And if llc creeate does other people can see whats under my llc?
Hello.
I need some knowledge about federal income tax. What are the ration of federal income tax we have to pay on our Florida LLC, Wyoming LLC and texas LLC?
If we generated 10k $ on my each LLC than how much tax should I pay as a federal income tax?
I live in Nevada. What is the best place to form an LLC. Nevada wants a ridiculous fee and a full business license. I am an IT professional who will be doing almost all remote consulting work and can operate from any state. I will not be selling any merchandise.
Hi Vince, technically, you’ll still be considered to be transacting business in Nevada. So if you form an LLC out of state, you’re supposed to register it as a foreign LLC in Nevada. And you’d still need to pay the filing fee and annual fees in Nevada and the business license. See NRS 86.548 (Penalty for transacting business without registration; enforcement; regulations) for more details. If you’d still rather form an LLC in another state (or let’s pretend this statute didn’t exist), I like Ohio LLCs. Reasonable filing fee and no LLC Annual Report. And no required state-level business license.
Hi Matt,
Thank you in advance in your assistance.
I currently live in Mexico, I plan to open an LLC for a virtual assistant business I plan to start up soon.
I will be offering remote services to US companies.
What state would be best to start this LLC, and what website would you recommend to help me in the process?
I have family in Washington states but they will not be a part of my LLC (just thought I should mention that, if it helps).
Also I had a SSN assigned to me by the SSN ADMIN, but since I am no longer a resident of the US (My RESIDENCY expired and eventually I got kicked out), should I still open my LLC as a foreigner with no SSN or should I use the SSN?
Thank you once again, have a great day.
Hola Vlixes, Wyoming is a good and popular state for non-US residents. If you want someone to form the LLC for you, we recommend hiring Doola. Thanks for letting me know about family in Washington. I wouldn’t recommend a Washington LLC. They are much more complicated to file (and have a required business license). It doesn’t matter if you have an SSN or not; you’re still a non-US resident (having the SSN doesn’t determine your residency status). So you can use your SSN to get an EIN from the IRS online (after the LLC is approved); assuming you apply yourself. If you hire a company to get the EIN, just let them know you have the SSN. Also, you don’t have to use your SSN. You can leave it off and just enter “Foreign” instead. Hope that helps.
For non u.s national which state is better to form a llc ?
If you have employees or an office in the US, it’s best to form in that state. If it’s an online business, you can pick any state. Wyoming is a popular state for non US residents.
Hi Matt,
We want to form a Non Profit Organization for a reforestation project we are working in South America.
I would like to know if opening an LLC or a non Profit as Non US resident, would both give an EIN on my name. and if having a EIN from an LLC or Non Profit, is the same process for opening a bank account.
Thanks in advance for your help and information!
Hi Carlos, an LLC cannot be used as a non-profit unless it’s 100% owned by an already existing non-profit organization, as recognized by the IRS.
Hi Matt,
I want to start an LLC for selling on Amazon and doing drop shipping. Would I still have to file the no-tax forms? My business wouldn’t be a franchise.
It sounds like you’re talking about a Texas LLC. If that’s correct, you still have to file a “No Tax Due” Franchise Tax Report. It applies to all Texas LLCs and doesn’t have to do with being a franchise or not.
I want to create an LLC which will be holding, managing and investing in stocks. Which state is best overall for tax purposes, and which state is best that does not require annual reports filing and does not have (or minimal) annual fees?
Hi Q, this very page shows the annual filing fees above. And from a personal tax perspective, there isn’t a “best state”, since you’ll end up paying taxes where you reside, no matter where your LLC is formed. Hope that helps.
Hello,
Can the annual fee be paid before the actual due date? I live in DE and I see where it says the fee of $300 is due in June. I was wondering what the earliest date is that you can pay it or if you have to wait and do it in June.
Thanks,
Hi SG, apologies for the slow reply. Yes, you can pay the Delaware LLC Annual Franchise Tax early.
I want to know how can i open my Dispatch LLC in USA, I’m from Asia. Please let me know NY LLC fee with annual fee and Colorado fee and annual fee. Please guide me
I am a non-US citizen that will be moving to the US in late 2021 (or early 2022). I will at the time obtain a US visa allowing me to work. I have an online business idea I would like to bring to life asap in the US. Considering forming an Oregon LLC now, since I (most likely) will be residing there. I have two questions that you might be able to answer. Would appreciate your thoughts on this.
1.) Is there something in regards to the LLC itself that needs to be changed/updated when I transition from a non-US resident to a US resident?
2.) How difficult is the process of domesticating an LLC from Oregon to a different state, if I end up in a different state?
Hi Nick, no, there is nothing for the LLC state filing. Meaning, there isn’t a checkbox to select the residency status of the Members. Your tax filing obligations will likely change though, so you’ll want to speak with an accountant about that.
Domestication is something we recommend hiring an attorney to do, as it’s a more complicated filing with multiple steps. Not all states allow for domestication either.
The two other methods of “moving” an LLC are to dissolve the Old LLC and form a New LLC in the new state. However, you have to “start over” and there is no company history. Meaning, you need a new LLC bank account, new EIN, etc. The other option is to register the Oregon LLC as a foreign LLC in the new state. You’ll need to maintain 2 state filings, however, this keeps the bank account, EIN, and company history the same. Hope that helps.
Matt, your articles are great! Thanks for all the info!
I have 3 partners (each from different states) and we’re forming a real estate syndication business where we would own a parent / asset management LLC that owns the child / property LLCs in the states the properties are located. Technically, the management LLC would share ownership of the property LLCs with investors, who will also be from all over the US.
Am I correct to assume that the management LLC is not actually conducting business in any state, since that’s being done at the property LLC level, and therefore the management LLC is just a pass through entity that takes its profits earned from the property LLCs and distributes it to the partners of the management LLC (and investors, of course)? Meaning we can form the management LLC in any state?
2nd question – assuming I’m correct in Question 1, what are the best states to form that LLC and why? Obviously the lowest cost states are Arizona, Missouri and New Mexico (and they don’t require annual reports), but are there compelling reasons to form the LLC in Wyoming, Nevada or Delaware instead? Or any other state for any other reason? Which state or states would you recommend based on our circumstances?
Thanks Ryan! First, I’d think of your Holding Company LLC as a holding company and not a management company. In order to not be doing business, the Parent LLC (aka Holding Company LLC) shouldn’t be doing much of anything, except just owning Child LLCs (aka subsidiaries). In that manner, the parent LLC wouldn’t need to foreign qualify.
For part 2, it’s a complex question that doesn’t have a black and white answer, particularly in regards to charging order protection (most information online is over-simplified and not always accurate). For example, just because you have a Parent LLC in Wyoming, that doesn’t mean the laws of Wyoming would apply if a Member were personally sued (they are most likely to be sued in their home state). It doesn’t mean Wyoming isn’t a good state for the Parent LLC, but rather, if it’s a real concern, you’d want to speak with an asset protection attorney(ies) located in your state(s) of residency.
Regarding affordable fees and easy states, I personally like Ohio and Missouri. They are affordable, simple, and the states don’t bother you. Meaning, there is no LLC Annual Report you don’t get get letters from the Dept. of Revenue/Taxation requiring registration, assuming an LLC or Member isn’t doing business in those states. Hope that helps.
Thanks Matt – is there any difference between Missouri, Arizona and New Mexico that would make one stand out over the other? These are the three states with the lowest formation fee (all at $50), and no annual reporting requirements.
Hey Ryan, keep in mind the Arizona LLC publication requirement so that may take it out of the running based on costs. It’s really hard to summarize a state. For example, take a peek at Chapter 19 (the LLC Act) of the New Mexico Statutes (here’s the rest of the LLC laws by state). LLC Acts are long and detailed.
Just looking at costs (LLC formation + LLC Annual Report… or lack thereof), New Mexico and Missouri are the cheapest. In terms of ease of completing and filing the Articles of Organization, it’s about the same between New Mexico and Missouri. You’ll also want to factor in the cost of a Commercial Registered Agent, if applicable. For example, if you have a friend or family member who lives in Missouri (and is willing to be the Missouri Registered Agent), then Missouri would be cheaper for you than New Mexico.
This is great info, thank you – and I didn’t even think about relatives, I actually DO have relatives in Missouri. You’ve got my vote for most authoritative source on LLCs! I’ll be telling everyone I know, thanks again!
You’re very welcome Ryan :) Thank you very much, that means a lot!
What if I want to form an LLC for recreational (not renting it out) vacation property in one state but I am a citizen of another? This would not be a business as such, but an LLC with family members.
Should I register the LLC in my home state or the state where the vacation property is located?
Hi Steve, what state is the property located in?
Thanks for your response. The family lives in Washington state, but the property is in Idaho.
Hi Steve, you’re welcome. As per Section 30-21-505 (#10) of the Idaho Statutes, simply owning property (not renting it out) wouldn’t be considered “doing business”. So if you formed an LLC in Washington, it wouldn’t need to be registered as a foreign LLC in Idaho. Having said that, a Washington LLC is a lot more tedious to set up and maintain than an Idaho LLC because of the Washington LLC Business License (aka “bulk registration”). It might be worth considering forming an LLC in Idaho. I hope that helps.
It does. Thank you!
buenas tardes Matt Horwitz, soy extranjero y estoy iniciando en la creacion de mi LLc pero quisiera preguntarte algo.
si mi empresas la aperturo en kentucky que es muy economico anualmente, mi negocio que es de ventas por internet pueden salir mis envios de california?
Hola Casique, depende. Los leyes sobre “doing business” en California son muy estricto (por favor mira When is an LLC doing business in California?). Puedes dame mas detalles sobre el negocio y los actividades en California?
bueno en realidad lo que quiero comenzar hacer son ventas por internet como el dropshipping que son envios a cualquier parte del pais y tambien quiero realizar el mismo trabajo pero con stop igual a cualquier parte del pais, pero en california reside un conocido mio personal y lo que quiero es que el solo haga los envios eventuales de los paquetes.
NOTA: No sera mi trabajador a salario sino que ya es una amistad.
Hola Casique, debido a esas actividades en California, California puede considerar tu LLC hacer negocios en ese estado. Si eso era cierto, sus necesidades fuera del estado LLC para registrarse como “foreign LLC” en California, California LLC pago de impuesto de franquicia, y presentan una declaración de impuestos de California LLC (Form 568).
My accountant said that in order to have good protection with a LLC in New York I would have to pay an annual $800 tax franchise fee. Is there a way to get around this (w/o moving to a more small business friendly state)?
Hi Domiani, I’m not sure what they are referring to. An LLC, by default, doesn’t pay franchise tax in New York. Only an LLC that has elected with the IRS to be taxed as an S-Corp or C-Corp pays New York franchise tax. Additionally, changing how the LLC pays taxes doesn’t affect the LLC’s liability protection.
Hello, I would like to incorporate an L.LC Company of non- profit purpose at U.S, I would like to know the accurate fees of incorporation without the attorney fees.
Hi Sawsan, an LLC cannot be a tax-exempt non-profit entity unless it is owned by a tax-exempt non-profit company.
Dear Matt
You are doing such a great job. I have 2 questions
1. I want to sell on Amazon in the USA, do I need LLC
2. I am living in Canada and want to do online business in the USA, am I supposed to use my Canadian address or my cousin’s address who resides in the USA.
Thanks in advance
Ghulam
Hi Ghulam, an LLC is not required. It is a personal choice. We first recommend speaking to accountant who is familiar with Canadians doing business in the USA. The reason why is that by default, Canadians with US LLCs will pay double tax (once to the IRS and again to the CRA).
Hi Matt.
We had an LLC in MD, which had filed its last report in 2014, and since 2015 it has been in “Forfeited” status. In order to re-activate it, I think it will cost 350 x 6 = 2100.00. Is there a way to have it active by registering as a new LLC since the previous one is forfeited, and keep the same name?
Hi Hugh, interesting question. The new LLC, under an identical name, will be rejected due to lack of name distinguishability. Some states allow for one entity to “consent” to the use of a similar/identical name. Our research team did a few quick searches and didn’t find such a form, however, that doesn’t mean such an action isn’t allowed under Maryland law. If you’d like to call SDAT and check on that, that would be the best route to take. We don’t deal with name conflicts, so don’t have this type of detailed information readily accessible. Hope that helps.
Hi,
I’m conducting business in CA as a foreign entity LLC.
And now I completely moved to CA from NY. Can you tell me how to change foreign entity LLC to domestic LLC in CA. Forming new LLC will automatically close the foreign entity LLC? And when shall I close NY LLC.
And one more question. Forming LLC in February make me pay $1600?
Thank you very much for your help.
I am forming a web/blogging business that generates affiliate marketing income. I have a previous sole proprietor business in NYC for my consulting income. I am transitioning from living full time in NYC to being a “digital nomad”. I will be dividing my time between NY, CA, and other locations. I expect to be less than 184 days in any given location. I will maintain a pied a terre studio apartment in both NYC and Los Angeles. I could spend more time in LA the first year if it were advantageous to establish residency there. Where should I form the new business? CA or NY?
Hey Liz, where an LLC should be formed or registered comes down to where it’s legally doing business. For digital nomads with online businesses, where your residency/domicile is will affect that. However, it’s a fairly complex tax matter. If you’re already considering changing state residency, then I’d look into that first (and speak with some tax professionals). After you make your decision where to reside, that should help provide more info into where to form an LLC. Something to keep in mind/look into: California will consider you doing business in their state just by being a resident, regardless of where you are or the type of business. Not sure about the details of New York. Each state has its own set of laws. Hope that helps and thanks for your understanding.
I already have an LLC in Texas and it is over a year now. Do I have to file anything after 1 year, like the minutes from our meeting? I did not do that and wondered the process, and if so where to send. My attorney has not responded on the details that are needed yearly . thank you and let me know
Hi Bernadette, you don’t have to file the minutes of your meeting, but an Annual Franchise Tax Report and Public Information Report need to be filed every year for Texas LLCs. Note: When those are filed online, they are grouped into one filing. We have more information here: Texas LLC Franchise Tax. Hope that helps!
I have a question. If I form an LLC in Calfiornia for an online business (web design), and then say in a year move to another state. Do I have to continue to pay California after I move my business out of the state just because it was initially formed there?
Hi Heather, “moving” an LLC can usually be done in 3 ways. It’s not just an address change. It’s either filing as a foreign LLC in the new state (in that case you’d still file/pay in CA + the new state), dissolving CA and forming new LLC, or domesticating/converting the CA LLC into the new state and then dissolving the CA LLC. After you dissolve and file a final return, that would be it for CA. Assuming you move the LLC to a new state and change residency. Hope that helps.
I live in Florida and I am using the llc to invest in a hotel in Indiana would Indiana be the best state to set up the llc or Florida. There Will be no business activity in Florida,only Indiana
Hi Pat, you’ll certainly be doing business in Indiana. So you’ll need an LLC formed there or an LLC formed elsewhere and then registered as a foreign LLC in Indiana. There are many ways to structure the setup though, so best practice would be to discuss pros and cons of various options with a real estate attorney. Hope that helps.
Hi! I am going into business with a partner doing college counseling. She lives in PA and I live in CA but we work together remotely with our students. We want to form an LLC — can we do that in PA (where she is a resident, pays taxes) if I am living and working in CA? Is there anything I need to do in CA?
Liz
Hi Liz, you may find how are LLCs taxed helpful. By default, a Multi-Member LLC will be taxed as a Partnership with the IRS (that’s for federal taxes). You’ll file an information return; the 1065. Then each LLC Member will get a K-1 showing their share of the income. Then each Member will pay state (and possibly local) tax on their share. So you’ll file and pay personal state tax in California; your partner in Pennsylvania. That’s a brief tax overview though. You’ll also want to look at where you’re transacting business. In this case, it would be both states. Also check out what is doing business in California (California is very strict). It’s a good rule of thumb to run this by an attorney. You’ll want to look at forming either just a California LLC, or forming an LLC in either PA or CA, and then registering it as a foreign LLC in the opposite state. Hope that helps!
Hey Matt,
Just came across your site here – very helpful for reading through.
I currently have Delaware LLC and am planning to register a Foreign LLC in California as our company is starting to do the same business transactions there. If I dissolve my domestic Delaware LLC after I formed California LLC, will my California LLC be able to stand alone as the remaining LLC as is? Will I need to re-apply this change of status from Foreign LLC to Domestic LLC or no need to do anything?
Thanks
Hi Richard, a foreign LLC registration isn’t a 2nd LLC. In your case, registering your Delaware LLC as a foreign LLC in California simply gives your Delaware LLC the right to transact business in California. It’s doesn’t create a California LLC. So if you dissolve your Delaware LLC, then there are no “LLCs” left. Hope that helps.
Hi,
My friend (who lives in Florida) and I (living in California) are planning on starting a paid online course, and set up an LLC partnership for running this business (both will be equal 50% partners). I understand that either person’s state may be chosen as state to register the LLC with, which would make Florida a better option. I will travel to Florida once a year for this business to meet with my partner. Do I need to register this as a foreign LLC in California then? Do I also pay Florida taxes?
Thanks
SS
Hey SS, you’ll want to speak to an accountant about tax details. You likely don’t have to personally file in Florida. Florida doesn’t have state income tax. However, you’re likely doing business in California, so a conversation with an attorney may be best to figure out which state and whether or not a foreign LLC is needed. Hope that helps.
I formed an LLC in Maryland in 2011, but never did any business using the LLC. I never filed returns or maintained the fees on a yearly basis, so in 2013 it was Forfieted.
Can I resurrect the LLC? Will it require me to pay back fees and penalties despite having no business related to the entity?
I am now looking to use this for my consulting businesses.
Thanks for your help.
Hi Glenn, yes, you can. It’s called an LLC reinstatement. It’s accomplished by filing an “Articles or Certificate of Reinstatement”. However, you’re correct, you’ll have to pay the back fees, any penalties, and file any applicable returns. We recommend calling the State Department of Assessments and Taxation (SDAT) during the week, giving them your LLC information, and see what’s required. Note, SDAT will send the LLC into collection and it’ll continue to accrue penalties. Hope that helps.
I no longer use my llc and haven’t in 4 years. Apparently I didn’t properly dissolve it and I currently owe the state of AR around $600 in fees. What are the repercussions if I just never pay the fees? Will this inhibit me years down the road if I want to form a new llc or another entity etc?
Hi Bret, you’ll need to speak with a tax attorney about this. We’re not sure. Thank you for your understanding.
Got it! I’ll do that then. Thank you, Matt!
You’re welcome :)
Hi Matt,
Thank you for this article and for the chart – very helpful! I tried to read through all of your Q&A above so as not to ask the same question more than once but it was very long. So pardon me if I’m repeating another’s question.
I live in CA and am starting an affiliate marketing business. Should I form the LLC in CA or can I form it in one of the anonymous/invisible states since I will be doing business with people across the country? Can you give me costs if I were to form the LLC in NM but reside in CA? Do the annual fees and filings still apply in CA if I do that? Thanks!
BTW, affiliate marketing will be done 100% online so I will not have an office but will be working out of my home or anywhere in the world. Thanks.
Hi Pal, even an online business is still doing business in California. If you reside in California, it’s best to form your LLC there. California has very strict laws (corporate + taxation) regarding doing business in the state. If you formed an out-of-state LLC, it’s likely you’d have to file a Foreign LLC in CA, pay the $800 annual franchise tax, file Form 568, and file/pay other CA state taxes. Please see here for more info: LLC doing business in California. Hope that helps.
Wish to hold listed stocks in an LLC, and conduct no other business. beneficial owners live in NV and CT.
If Charles Schwab doesn’t care where the LLC is organized, then do I just choose lowest fees (UT, NM, CO), or is there some reason to avoid those states?
Hi Jenny, we’re not 100% sure on this one. We don’t deal with LLCs held for stock investing. I’d run this question by a few attorneys and see what’s recommended. Thank you for your understanding.
Hello Matt
Thank you very much for the valuable information you provide on this site. I am planning to form an LLC in New Mexico as a holding company ( due cheap filling and because their option regarding privacy. Not because I want to make something ilegal but for privacy matters because I will be working from home and I do not like my private information in public records.) but I will be living at least for the next couple of years in Florida. I am planning to form a child LLC in Florida. The holding company in NM will not have any revenue, it’s only for holding the child LLC. Do I have to pay anyway federal or states taxes in NM for the holding LLC? Apart from the annually fees for the registrar agent, do I have to pay any other fee in NM.
Can I after the formation of the NM LLC register the child LLC on my own or do I need to contract a register agent in FL?
Probably I will move to Puerto Rico in a couple of years or maybe I will have double residency in PR and FL, (because I like a lot FL, I still don’t know), which case would be better? New child LLC in PR from the holding NM LLC? or from FL Child LLC?, or register Foreign LLC in PR from FL child LLC?
Hi Rose, you’re very welcome. Interconnected questions like this with dozens of uncovered details are challenging to address. Something like this is best discussed with a tax attorney/accountant (ideally a few of them). You’ll need to double-check on this, but if you form a New Mexico Parent LLC that owns a Child LLC in another state, there shouldn’t be any state filing requirements in New Mexico (depending on the how the LLC is taxed). A Commercial Registered Agent can be hired as your Registered Agent, or they can be hired as your Registered Agent and they can do your LLC filing, or neither. You can always form the Child LLC yourself and be your own Registered Agent in Florida (or use the address of a friend or family member).
In terms of whether or not you should form an LLC in Puerto Rico and which LLC should be the Parent LLC and which LLC should be the Child LLC isn’t something we can address. There are many details to unpack here and if you end up moving to Puerto Rico that changes everything from a tax perspective. To further clarify, you’ll not only want to speak with a few tax attorneys/accountants, you’ll also want to speak to those that specialize in working with expats who reside in Puerto Rico. Thank you for your understanding and hope that helps.
Hey there. thanks for taking the time to answer questions. I live in CA, and I am setting up a website. The website will not have any revenue for the forseeable future – maybe never. I need to have the website and content protected by an LLC for my liability protection. I would file in CA, but with the egregious fees (and the fact that the business will not have any revenues), I was wondering if I can incorporate out of state. All I need the LLC for is to create a bank account to pay for certain expenses and for the liability protection. Thanks!
Hi Grant, this falls into a bit of a gray zone. While you may be able to form an LLC in another state, setup a bank account there, and create the website, there’s also a chance that in the near future you’ll need to register that entity as a Foreign LLC in California. California is very strict, in both their corporate and tax laws, regarding “doing business”, so it’s tough to say here. We also recommend checking out what is doing business in California. Hope that helps.
Hello, Matt.
I’m a foreign and would like to open a small ecommerce business in the US. Do you think having a LLC in the State of Arizona is a good choice? Fees and taxes are the lowest, for me, at the beggining, would be very helpful. Also I would choose as my agent one of those three RocketLaywer, NorthWest or LegalZoom. Any suggestions? I thank you very much in advance!
Hey Vilma, I think Arizona is a good choice. Our favorite company is Northwest Registered Agent. They work with foreigners and have great customer support. You can select their “Basic” package. This includes their Registered Agent service and filing of the LLC formation documents. Then you can download an LLC Operating Agreement from our website for free. We also have instructions for getting an EIN without an SSN. And we also have information on opening a U.S. LLC bank account here: foreigners opening US LLC bank account. Hope that helps!
Hello there,
I currently reside in IL but also have a home in AZ. I want to bounce back and forth in the future. I want to create an online business so the AZ LLC looks more appealing but I would like to do work in both. What is the best suggestion, and can I file for an LLC in AZ even though I don’t currently live there (shared home, so it’s not in my name or anything).
Hi Tina, rather than if you own a residence or not, the states look at whether or not you’re “doing business” there. It can be a bit of a gray zone, so there isn’t a clear answer. You can form the LLC in either state. However, if your mostly running the business from Illinois and deriving income there, then you’re most likely doing business there. Which means, if you form an LLC in Arizona, you’d need to register as a Foreign LLC in Illinois. And Illinois is where you’d file your state taxes too. Hope that helps.
For tax purposes, is it better to file an LLC in Florida or in Nevada? Also, I live in Georgia. Thanks!
Hi Kate, if you’re earning income and running the business from Georgia, than Georgia is where I’d form the LLC. Forming an LLC out of state will require you to then register as a Foreign LLC in Georgia. Also, taxes are paid where the money is made, not where your LLC is formed. More details can be found here: where should I form an LLC? Hope that helps!
If I have a patent and file it under my LLC I can still sell my patent separately right? If I have someone who wants 5% of the proceeds from the licensing of the patent I don’t have to put them under the LLC to pay them do I?
Thanks,
Kyle Herman
Hi Kyle, correct. The LLC is a legal person, similar to you and I, and therefore it can buy and sell things. And correct, your licensing agreement doesn’t require that person to become an LLC Member. Hope that helps.
Hi Matt,
My sister who resides in MD and I, residing in FL bought a tiny house (it is on a trailer) and put it in a place in PA called Tiny House Estates which is essentially a campground sort of place for tiny house rentals. From the information you’ve given it seems we should form an LLC in PA as that is where we are collecting rent. Any thoughts you might have would really be helpful. Thank you so much. What a terrific site!
Regards
David Ritchey
Hey David, thanks so much! If you want the tiny house to be owned by the LLC and you’ll keep it in PA, then forming an LLC in PA as the correct route since that’s where you’re doing business. Hope that helps!
Thank you so much Matt. You are awesome.
d
You’re welcome David. Thank you!
I have a product idea in mind, it’s a tangible object that I can sell. Do I need to have an LLC? Do you recommend an LLC in that situation? I’m also interested in protecting my privacy, will an LLC do that as well?
Thank you!! :)
Hi Amy, we have an article that speaks to this here: LLCs and asset protection. Yes, you can have a private LLC. It depends on the state, who you use as your Registered Agent, and whether or not you file yourself or hire a filing company. Hope that helps!
Hello Mat!
I’m from Africa and I own a successful and growing software development company. I would like to extend my branch by opening an office in US preferably texas. Please guide me through where I should register and advise me If it is necessary for me to personally come for bank account opening in US. Please note that I will hire american residents permanently in the US office to take Web design orders. Please guide me on the taxes and the whole process. Let me know if any of your service can help.
Hey John, we don’t have info on taxes for non-US residents yet, so we recommend speaking with a few accountants who work with international clients. We’ve written about banking for non-US residents here: LLC bank account for non-US resident. Hope that helps!
Hello Mat!
I´m from Mexico and I just want to form and LLC to be able to access a payment gateway in my shopify ecom store (Stripe).
Shall I just choose to form it in the cheapest state? Or what would be your advice? I´ve been seeing many people in the ecom business chose Delaware, I honestly don´t know which is the criteria used.
Amazing website, wish we have one like this in Mexico :)
Moni
Hey Moni! Thanks for the kind words. We’re not sure what the “best state” is for non-US residents yet. We’re working on the research and talking to many readers. Thing is, there is a lot of variation when it comes to the bank account and that’s where a lot of people get stuck. We’ve written an article on this (non-US resident bank account for LLC), however, you’ll likely need to visit the U.S. to open your LLC bank account. So for now, we’re recommending working backwards. Figure out the bank you want to go with (and make a number of phone calls to the banks), figure out where you can visit/fly to, then see if that’s a good state for your LLC. Wish we had something more specific. Hope that helps though.
I am aa US citizen planning to relocate and make a company incorporated in Singapore with a larger main office in the UAE, and a small virtual address in Wyoming. If we have no US assets and 572,000 in profit from the Singapore and UAE location, as well as 0% from our virtual employee location in Wyoming what would my annual business fee be? Also is there a way you would recommend that I can present this info to the Wyoming agents collecting this fee so I can get the fee completely waived?
Hey Jacob, do you plan on forming a Wyoming LLC? If so, the Annual Report has a minimum fee of $50. It’s more only if you have $250,000 (or more) of assets that are located in Wyoming. Hope that helps.
Hello,
New York is $9 every two years? Why did two sources one which is my attorney tell me is $25 annually?
Hey Jennifer, they’re likely not referring to the Biennial Statement (due to the Division of Corporations/Department of State), but instead are referring to the “Partnership, LLC, and LLP annual filing fee” that is due to the Department of Taxation and Finance. We should update the table to make that clear. Thanks.
Hey!
I am not a US resident. I am planning on importing goods to the US and will shortlist one of the following states soon because of their sea ports. I will also be hiring a logistics/warehousing company in the shortlisted state:
-Georgia
-South Carolina
-New Jersey
-New York
Now my question is if i have my office in a different state from the state i am importing to and warehousing my product, will i have to register in both states? Keeping in mind i am just hiring an existing warehousing company and using their services, it is not my warehouse.
Thanks
Best,
M
Also do you recommend any state in particular? Ive read your article but i dont have a home state. So just wanted to know if any of the states are more preferred than others or are just easy to operate in? Because whichever state i chose i will have to live there 7 months in a year, which is why i need to closely research and see all factors.
Thanks for your help. Love your website. Super informative.
Best,
M
Hey M, thanks for the kind words! Hard to pin-point a specific state based on what you’ve shared, but it comes down to “doing business”. By hiring an existing warehouse, it doesn’t sound like you’re doing business in the state where they are located, but we can’t say for sure. Importing through ports and having an actual office would constitute doing business. If you doing business in a state other than the state where you form your LLC, you’ll want to register your LLC as a Foreign LLC in the 2nd state. We recommend speaking with an accountant and/or tax attorney regarding any tax considerations. Additionally, we recently published some new articles that you’ll find helpful: non-US resident opening US LLC bank account and how to apply for EIN for LLC without an SSN. Hope that helps and thanks for your understanding.
Hi Matt,
I am looking into purchasing a hospitality business (Motel) in the near future with a business partner. I am based in Michigan and business
partner is based in Pennsylvania, but the business we are looking to purchase is in Ohio. Where should we plan to setup our LLC, we have permanent address in MI and PA but nothing yet in OH. Please advice.
Thanks,
Amit
Hey Amit, you’ll need to have the LLC formed (meaning a Domestic LLC) or registered (meaning a Foreign LLC) in the same state where the motel will be located since that’s where you’ll be transaction business (related article: domestic LLC vs Foreign LLC). You could form the LLC in the property state or you could also consider a Parent/Child LLC setup. For example, forming an LLC in Wyoming that owns the LLC in the property state may offer better asset protection. Hope that helps.
Hi Matt, my husband and I wish to create an LLC in either Oregon or Washington state (we maintain two houses and travel frequently between these two states). Besides annual fees/initial filing where WA probably edges out a little, we would like to know the tax advantage comparison between these two states. WA has the notorious B&O tax with sales tax, and OR has state income tax though no sales tax. Business is mainly online business. Can we get some advice from you? Also, will forming an S-corp or C-corp help with benefiting tax purpose?
Hi Matt,
My friend is a foreigner and he wants to set up office in USA, LLC company to serve his customers in USA. Is this possible as a foreigner? He would set up the company as a design and product sourcing company. He has customers in different states. I am resident in California and I am planning to work for him. What is the best way to open an LLC company, and what state would be best to open it? What is the best economically and for tax purposes? And how does he go about to open the bank account in the USA? What steps does he need to take here? Does he need to have a certain number of employees? If he wires money here to start and run the operation, is there any tax consequences? Do you provide the service to set up an LLC and if so, how much and what does it include? Thank you for your information.
Hi Lina, when you say “work for”, this can mean a number of different things including being an employee (who receives a W-2) salary, being an LLC Member (who receives distributions), being an LLC Manager (who is or is not financially compensated) and more. I recommend you speak with an accountant about the tax consequences as there are far more details to get into than what you’ve shared and asked. If the only LLC Member is your friend, who is a non-US resident, then he can pick any state, however, you’ll want to consider a state that’s relatively easy to travel to since he’ll need to visit the US to open an LLC bank account (see foreigner opening US bank account for LLC). If the LLC is taxed as a Disregarded Entity (which it will be by default if he is the only Member), then he’ll have federal filing requirements and possible state filing requirements as well. No, there doesn’t need to be a certain number of employees (or any employees for that matter). Wiring money to the LLC bank account is not taxed. It can simply be a contribution to the LLC to capitalize the business. In terms of getting an EIN for the LLC, please see here: applying for EIN without SSN. Also, you’ll want to look over our article on Form 5472 for foreign-owned Single-Member LLCs. We don’t currently offer LLC filing services, but you can file the LLC yourself by following our free LLC guides or hiring Northwest Registered Agent. Northwest usually doesn’t offer EIN services for foreigners, however you can follow the lesson we linked above. Hope that helps!
Hello Matt. My husband and I are starting a real estate investment company in NV where we reside and will do business. Is there a separate process and cost to using a DBA? If so could you explain what and how? Also is it relatively easy to do on our own rather than hire someone to do? Please advise. Thanks.
Hi Mia, I recommend reading Do I need a DBA (Fictitious Name). If you decide that your LLC will do business under a name different than the legal name it’s filed under, then you’ll need to register the LLC’s Fictitious Name with the County Clerk in the county (or counties) where your LLC will do business. You can call the appropriate county clerk for details. Contact information for the county clerk’s can be found on the state’s website: Nevada County Clerk Information. Hope that helps.
We are Florida residents, thinking of forming a Montana LLC in order to save sales Tax on a new motorhome in Montana. What do we need to do and what will the charges be? Do we pay an annual fee for the LLC as well and do we need to return to Montana yearly to do it? Thank you, RGL
Your best bet is to contact the Montana Dept of Revenue.
Hey RGL, the Montana LLC filing (and Annual Report) can be done online so you don’t have to visit the state for that. However, as far as getting your tags/registration, we’re not 100% sure on the details as we haven’t dug into this research yet. It’s on our list though to discuss Montana LLC for the purpose of exotics, cars, RVs, etc. and sales tax. Thanks for your understanding.
I pay booth rental within a business that already have an LLC and have a business license is it necessary if Im a small business to get a LLC. It do sound worth it.
Hi Crystal, forming an LLC is not required, so it’s up to you. Hope that helps.
I understand that CA has a 1.5% tax on net taxable income, and a gross receipts fee as well. Does AZ have something similar, or is the only fee the initial $50 LLC fee?
Hey Mike, we don’t get into the weeds with taxes much, so you’ll need to speak with an accountant on this. Also, even if a certain tax exists, if it’s a corporate tax (and your LLC is taxed in it’s default status), it may not apply. Hope that helps.
What forms of payment does the Sec of State accept for LLC registration? Thanks.
Hey Chris, you’ll need to check out the information for the particular in question. Click on our homepage, select the state, and look at the Filing Forms/Articles of Organization lesson. The most common methods are check, money order, and credit or debit card. Hope that helps.
Hi Matt,
Thanks for all the great info. I have a twist on the scenario so would love to get your input: I have a Utah LLC to use a Self Directed IRA (custodian has an office in Ca) to purchase rental property in OH where there will be a property manager. I currently live in CA but am looking to move out of the state. If I use a Utah bank account do I still have to register as a foreign LLC in Ca?
Hello and thanks for having such a great Q&A forum.
I am set up in Virginia as a new LLC. My business is based primarily on Private Security Services. I am strictly a service provider. The majority of my work will hopefully come from Virginia where I reside. However after 30 plus years doing the same work in the banking industry I have contacts outside the state of Virginia that are contacting me to work on various projects. From a legal standpoint can I accept those opportunities without forming a foreign LLC in those states. Virginia has reciprocity in the states of NC, FL, LA, GA, KY, TN. Some of these states will be where my opportunities will come from. I will not have any companies established anywhere but Virginia. However I do wish to accept the opportunities for work projects from other states. Any advice is appreciated. Thanks Richard
Hi Richard, you’re very welcome. You’ll be fine with just a Virginia LLC and you won’t have to worry about Foreign LLC registrations in this case. Hope that helps Richard.
Since 2012 Rhode Island also has a $500 minimum corporation tax that applies to all LLCs, including sole-proprietorships/pass through entities. It is in addition to the $50 filing fee. For LLPs, LPs, and S-Corps it is referred to as a minimum franchise tax.
Hey Tobias, apologies for the slow reply. Thank you for your comment. We have the Rhode Island LLC taxes page updated. The minimum fee has been reduced to $400 now. Thanks.
Hi Matt,
My 35 year old nephew is interested in setting up an LLC in Indiana. he currently is doing some work for a friend and the friend is paying him. I do not know if the friend has an LLC. I’m a little confused as to why he wants to set up an LLC. He said something about taxes and the way his boss is paying him. I know this is vague. I advised him not to and that’s his boss’s job to set up an LLC, not my nephew. The only reason I can think of is if my nephew is contracting himself out, working for other people, then maybe he wants his own LLC. I also don’t think he has looked at the big picture of paying taxes on behalf of the LLC, unless Indiana doesn’t require an LLC to pay taxes on the LLC. Can you think of ANY reason why an individual like my nephew (laborer), not getting paid too much, would want an LLC in his name? Again, I know it’s vague, but trying to understand why in the heck he would want to do such a thing. I plan on talking to him about it in depth to see why, but maybe you can enlighten me on what your thoughts are in this respect. Thanks for your time.
Diane
Hi Diane, we haven’t gotten into this subject matter yet, but there can sometimes be benefits (usually from a liability standpoint) for an Independent Contractor to operate as an LLC.
Hello Matt
I have few questions. I am from Serbia an I like to open LLC somewhere in US. In Serbia I have company and produce some steel and stainless steel products(fences, gates, drains), so now I like to selling my product in US. What is your proposal? Do I have to open LLC in every state where I will sell my product? Can I freely import my products into the US and where can I find out how much is customs fee for my product? I want to do business with companies. Do you know how I need to pay tax and how much is tax for that? What else I need to know before first step?
Thanks in advance
Hi Vladimir, we don’t cover taxes, so you would need to speak with an accountant about that. No, you don’t have to form/register your LLC in every state where your customers are. You’ll want to form your LLC in the state where you’re doing business. Hope that helps.
Hey Matt! Quick question. I was born in the Us and moved to Israel at age 13 and still live here. (have a SS#). I only want to open an LLC for Amazon FBA. Would it be correct to say that for me the best State would be the cheapest one? Arizona?
Hi Zvi, this is an interesting question… not sure if there is a quick black and white answer to this one. Said another way: I’m not sure. Might want to run this question by a few other people. Thanks.
Hi
This article and the feedback is so helpful.
But now I have a question of my own.
I understand llc’s to have protective powers when it comes to loans, especially in the state of wyoming.
But would a c corp llc have those same powers when it comes to venture debt?
Thank you.
Hi Al, thanks for the kind words. I’m not sure what you mean by a “C Corp LLC”. I’m assuming you mean an LLC taxed as a C-Corporation with the IRS? Either way, I don’t know the answer to your question. However, since the C-Corp tax election is made with the IRS, I would imagine how the LLC is treated by the state legally would still remain the same. Thanks.
Hi,
Isn’t the information for NY incomplete?
It seems NY has at least $25 fees for filing the form IT-204-LL . Would you please give some insight into that and why you did not mention it?
Thank you
Hi Silas, the IT-204-LLC is a part of the LLC’s state-level tax reporting requirements filed with the New York Department of Taxation and Finance. And although they also use the term “annual report”, the Annual Report fees mentioned in our table (and traditionally speaking, anytime LLC Annual Reports are mentioned) are for the Annual Report filing paid to the division which created the LLC, usually the Secretary of State or Department of State. I see how that can be confusing though, so we do appreciate your feedback about this.
Thank you very much for your quick reply. In the following link, I read two contrary things.
https://www.tax.ny.gov/pit/efile/annual_filing_fee.htm
On one hand, it says that:
Form IT-204-LL should not be filed by:
“a partnership, LLC, or LLP with no income, gain, loss, or deduction from New York sources in the current taxable year, regardless of whether or not it is formed under the laws of New York State or is dormant;”
and on the other hand it says:
“If an LLC or LLP did not have any New York Source gross income for the preceding tax year, the filing fee is $25.”
Based on my understanding if the company has no income (inactive?) they should not file this form but as I read more it says LLC should pay $25 even if there is no income. How could a company pay that without filing it?! Am I missing something here?
Hi Silas, you’re very welcome. We can’t get into the details of taxation forms. Since there can be anywhere from 5 to 12 forms needed in a particular state, times that by 50 and you can see how large the scale is (and this doesn’t include local returns). We solely focus on LLC formation (and we still have content yet to be published). We really recommend working with an accountant to make sure your federal, state, and local taxes are filed and paid correctly. Thanks again for your understanding. You can also call the Department of Taxation and Finance if that helps.