LLC Annual Fees by State

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LLC Annual Fees by State

Note: Some fees mentioned in the video above have changed. Make sure to reference the table below for the most up-to-date information for your Limited Liability Company.

The table below shows LLC annual fees by state.

As of 2024, 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
  • LLC CostBiennial Report
  • Biennial Statement
  • Business Privilege Tax Return
  • Franchise Tax Report
  • Periodic Report
  • and more

Important: Just because certain states have lower fees does not mean you should form an LLC 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 an LLC. You can think of your LLC filing fee as being one of your LLC startup costs.

What’s the LLC Annual Fee?

LLC Annual ReportThe LLC annual fee is an ongoing fee paid to the state to keep your LLC in compliance and in good standing. You can think of Annual Fees as being part of your LLC maintenance costs.

It’s usually paid every 1 or 2 years, depending on the state.

These ongoing fees are required, regardless of your LLC’s income or activity.

Said another way: you have to pay this even if your LLC does nothing at all or makes no money. 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.

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LLC Annual Fees (as of 2024):

State LLCLLC Filing FeeLLC Annual FeeDuePayable To & Form Name
Alabama LLC$200$50 minimum2.5 months after formation and annually by April 15AL Department of Revenue, Initial Business Privilege Tax Return
Alaska LLC$250$100Biennial, January 2AK Department of CCED, Biennial Report
Arizona LLC$50$0No annual fee + no report dueN/A, N/A
Arkansas LLC$45$150Annual, May 1AR 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$120$80Annual, March 31CT Secretary of State, Annual Report
Delaware LLC$90$300Annual, June 1DE Dept. of State, Annual Franchise Tax
Florida LLC$125$138.75Annual, May 1FL Department of State, Annual Report
Georgia LLC$100$50Annual, April 1GA 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$150$75Annual, anniversary monthIL Secretary of State, Annual Report
Indiana LLC$95$30Biennial, anniversary monthIN Secretary of State, Business Entity Report
Iowa LLC$50$30Biennial, April 1 of odd yearsIA Secretary of State, Biennial Report
Kansas LLC$160$50Annual, April 15KS Secretary of State, Annual Report
Kentucky LLC$40$15Annual, June 30KY Secretary of State, Annual Report
Louisiana LLC$100$35Annual, anniversary monthLA Secretary of State, Annual Report
Maine LLC$175$85Annual, June 1ME Secretary of State, Annual Report
Maryland LLC$100$300Annual, April 15MD State Dept. of Assessments, Personal Property Tax
Massachusetts LLC$500$500Annual, anniversary monthMA Secretary of the Commonwealth, Annual Report
Michigan LLC$50$25Annual, February 15MI Dept. of LARA, Annual Report
Minnesota LLC$155$0 (must file an information report, no fee though)Annual, December 31MN Secretary of State, Annual Report
Mississippi LLC$50$0 (must file an information report, no fee though)Annual, April 15MS Secretary of State, Annual Report
Missouri LLC$50$0No annual fee + no report dueN/A, N/A
Montana LLC$35$20Annual, April 15MT Secretary of State, Annual Report
Nebraska LLC$100$13Biennial, April 1 of odd yearsNE Secretary of State, Biennial Report
Nevada LLC$425$350Annually, anniversary monthNV Secretary of State, Annual List of Members + Business License
New Hampshire LLC$100$100Annual, April 1NH Secretary of State, Annual Report
New Jersey LLC$125$75Annual, 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 15NC Secretary of State, Annual Report
North Dakota LLC$135$50Annual, November 15ND 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$7Annual, September 30 (starting in 2025)PA Department of State, Annual Report
Rhode Island LLC$150$50Annual, February 1 - May 1RI Secretary of State, Annual Report
South Carolina LLC$110$0No report due unless LLC files 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 1TN 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 15TX Comptroller, Public Information Report + Franchise Tax
Utah LLC$54$18Annual, anniversary monthUT Department of Commerce, Annual Report
Vermont LLC$125$35Annual, March 15VT Secretary of State, Annual Report
Virginia LLC$100$50Annual, anniversary monthVA Corporation Commission, Annual Registration Fee
Washington LLC$200$60Annual, anniversary monthWA Secretary of State, Annual Report
Washington DC LLC$99$300Biennial, April 1DCRA, Biennial Report
West Virginia LLC$100$25Annual, July 1WV Secretary of State, Annual Report
Wisconsin LLC$130$25Annual, anniversary quarterWI Secretary of State,
Annual Report
Wyoming LLC$100$60 minimumAnnual, anniversary monthWY 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.

Operating AgreementAn 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 state and federal 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 taxes on income to the Internal Revenue Service (IRS). Instead, the profits “pass through” to the LLC Members. And the Members report and pay the taxes on their personal income 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:

  1. How to start an LLCChoose an LLC name and make sure it’s available
  2. Choose who will be your Registered Agent
  3. File the LLC Articles of Organization
  4. Complete and sign an LLC Operating Agreement
  5. Get a Federal Tax ID Number (EIN) from the IRS
  6. Open an LLC bank account
  7. Check whether you need a business or sales tax license

We’ll walk you through it all with our step-by-step guides.

Matt Horwitz
Matt Horwitz
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
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.

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310 comments on “LLC Annual Fees by State”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. Hey, I am a resident in Ohio, but will operate a door to door sales company. This year we are in Idaho, but move states from year to year. Should I form the LLC in my home state, or in Idaho (and switch it every year)? Or should I consider one of the ones with no state sales tax, like Wyoming or Nevada?

    • Hey Sawyer, you’ll pay tax where the money is made, not the state where your LLC is formed. I’d consider forming the LLC in Ohio and then registering as a Foreign LLC in Idaho and the other states where you’ll be operating. After you leave the operating states, you can then cancel/withdrawal the Foreign LLC registration(s). This will allow you to operate in all states where you do business but keep the “base LLC” in your resident state with the same bank account, EIN, and company history. Hope that helps.

  2. I keep on hearing about people opening an LLC in states like delaware , nevada and other place is it better to open an LLC in one state over the other ?

    • Hi Matt, you’ll need to form your LLC in the state where you’re doing business. For most people, this is the state where they live and are a resident. If you form an LLC out of state, you’ll need to register that LLC as a Foreign LLC in the state where you’re doing business. We’ve covered this topic in greater detail on this page: what’s the best state for my LLC? Hope that helps.

  3. Advice on staring a LLC (inde film production company) in California but looking to film other states such as Illinois, Georgia and Louisiana.

    • Are there any specific questions that you have? If you’re wondering what state to form the LLC in, since you reside and will do business in California, you should be forming your LLC in California. Hope that helps.

  4. Hi there

    Odd question for you. I’m an American citizen with permanent residence in Virginia, yet temporarily residing in NYS. My significant other is a foreign diplomat, so we move every 3 years or so. My drivers license and federal taxes have been from a Virginia address for years.
    I do some business consulting work on the side (all done remotely from wherever I happen to be that day) and exploring the LLC as a more permanent entity. So the question is VA, NYS, or Delaware?

    • Interesting scenario Sam. It really comes down to where you are substantially doing more business. I’d lean towards towards Virginia, but I recommend you run this question by a few attorney and tax professionals to see what they think. Apologies we couldn’t be more specific.

  5. Hi

    I currently own a business under a sole proprietorship in Pennsylvania. I want to file for an LLC for the business but am moving to Georgia in July (and taking the business with me) Does it benefit me to do the LLC now while I am in PA or wait until I am in Georgia? Also, which statewould be more beneficial to file for the LLC in? Thanks in advance for your advice!

    • Hey Chuck, if you’re moving to Georgia and will reside and do business from there, it’ll be best (and easiest) to wait until you’re in Georgia and then form a Georgia LLC.

      As an example, if you didn’t do that and instead you formed a Domestic Pennsylvania LLC, you’d later have to either, 1.) Dissolve the PA LLC and form a GA LLC or 2.) Register the PA LLC as a Foreign LLC in GA. Note: some states allow for a conversion (also called “redomestication”) where you’d “move and convert” the existing Domestic PA LLC to a Domestic GA LLC, but Georgia doesn’t have laws for redomestication of LLCs. So… having said all that, both #1 and #2 are tedious, time consuming, and likely to lead to clerical errors/issues… so again, I’d wait. Hope that helps :)

      • Hi Matt

        Thank you for the insight! My decision is made and we will gladly pay for your company do the legwork for us. Looking forward to working with you.


        • Hi Chuck, thank you for the kind words, but we don’t offer filing services at this time. Instead, we have a free course that will show you how to form your Georgia LLC yourself. It’s in the link to my first reply. Hope that helps.

  6. Hi Matt,
    I live in NH, and i plan on starting a consulting business online, all my clients will be web based (i might visit a few of them physically) but rest of the correspondence and consulting will be e-based.
    Do i need to file LLC in NH? How about if i file it in MA? Since i will be doing businesses nationwide, do i need to file LLC in all states?

    • Hi Tamoor, “doing business” is not about where your clients are, but more so about where you are working from. If you’re living and running the business from New Hampshire, than that is where you are legally doing business and that’s the state where you should form an LLC. Hope that helps.

  7. hi Matt. IMx not usa citizen . whould you tell me which state LLC doesnt have 1. franchise tax 2. income tax 3. annual report. thanks in advance

    • Hi Vasif, the states with no Annual Report are listed on this page. We cannot advise on franchise tax and income tax. You’ll need to speak with an accountant about your business and your situation.

  8. Hi Matt,
    I have an LLC in NV. Do have to renew or pay a fee if I want to dissolve the LLC?

    Thank you,


    • Hi Sharon, yes, at the time of this reply, the cost to dissolve a Nevada LLC is $100. You’ll need to file an Articles of Dissolution and Customer Order Instructions with the Nevada Secretary of State. You can find the forms on this page: NV SOS business forms. Look for “Articles of Dissolution for a Nevada Limited-Liability Company (NRS 86.531)” under the “Withdrawal/Dissolution” section and download the “complete packet”, which includes instructions. Hope that helps!

  9. Hi Matt,

    what state would you recommend to incorporate a company that is holding shares of European company. Except of holding these shares the company will be fully dormant. There will never be any dividends distributed from the European company to the US company. Involving a US company is only a work-around to make my son (6 years old) legally a shareholder.

    I was thinking of New Mexico LLC as there are no annual fees. Any better alternative?



    • Hey Mike, I wish I knew the precise answer to this one, but I’m not sure as we don’t provide information and research on holding companies for the use of their holding assets being overseas. I recommend speaking with a few attorneys and accountants for more information. Feel free to keep us updated if you’d like. I’m curious to hear what you come up with. Having said that, I’d also look at Wyoming. There is an annual fee, but it’s just $60 per year. Hope that helps.

  10. Hello, Matt!

    If someone is a single owner LLC company in Wisconsin, can you create a subsidiary based in Texas or does the subsidiary LLC have to be based in the same state as the main company?

    Thank you very much.


    • Hi Frances, a parent company in Wisconsin (regardless of whether it’s single-member or multi-member) can own an LLC (child LLC) in any state. They do not have to be in the same state. However, usually in a parent-child LLC relationship, the parent LLC is just a holding company and it is not legally doing business in the state in which it’s setup. But the child LLC is doing business, so the child LLC should be formed in the state where business is being done (or the state where the property is located if you’re a real estate investor). Hope that helps.

      • Hi Matt,

        As a real estate investor, If there are multiple properties in a state different from where the business was originally formed, Can each of those properties be a separate Child LLC of the Parent (original)? Also, are the liabilities of each Child LLC limited to only that Child? Or is the Parent LLC also responsible for the liabilities of each child llc? thanks!

        • Hi Lisha, yes, each of your LLCs can be owned by another LLC (the “parent” LLC). You’ll want to make sure that your child LLCs are formed in the state where the property is located since that’s where the companies are legally doing business. And yes, if set up correctly, the liabilities of each child LLC are limited to that child LLC. The other child LLCs and the parent LLC should not be affected. This isn’t 100% ironclad though. There is always a slight chance that a corporate veil (or in this case, veils) could be pierced, but it is not common. Hope that helps.

  11. I live in the state of WA. I was thinking about creating an LLC in order to create and publish apps for mobile phones. Gazillions of people do it, so I though I give it a try. I was reading the pros and cons online about publishing apps under your name vs a company name, so I decided to maybe setup an LLC. However, I’m not sure about the accuracy of the information. On this website, I see that the filing fee for WA is $200 and the annual fee is $60. I was just reading the PDF application form and it states that Trade Name registration is $5, and the Business License Application fee is $90. How an earth did you get $600 out of this!? Plus, I have to renew this every year for 60 bucks!? I do not understand how (not to mention WHY) people would do this? I wanted to publish mostly free apps. So for free apps, I have to work to create them, then publish them for free, and on top of it, I have to pay $200 registration and $60 per year to publish free works? WHOA! Why so many developers do this? What is the secret sauce that I do not understand, but “they” do? Why is it worth for some people to publish free apps under an LLC (or whatever company) but it cost them a chunk of money to do that? (…now I’m rolling my eyes big time…)

    • Hi Greg, you’ve confused a Trade Name (DBA) with an LLC. They are not the same thing. Just because something is free doesn’t mean it’s not monetized another way. If you Google “how to monetize free apps”, you can find helpful information. Advertising is a common method, and there are a few other examples as well. Hope that helps.

      • Thanks for the reply, Matt. It is not possible to publish an app in the app stores (Apple/Google) using a DBA. It either has to be a company with a DUN number or your personal name. So even the “free” app developers apparently using a company name (with a DUN number). And that seems to be the ONLY way to publish apps – provided you don’t want your name and home address to be published to the world. And that is what I found to be a lot of “overhead”. Filing for LLC, renew it each year, on top of it renewing the Apple developer account each year, plus possible taxation on your LLC even if you don’t make a dime. That’s a bare minimum of 200 bucks a year. If your LLC is taxed even on zero revenue (so I’ve read), then depending on this tax, you have to make at least $300 (plus LLC taxation value) in order to break even on the “free” app (…app stores take a percent of your profit…). Of course if people don’t have the problem publishing their name and home address to the world, then there’s no issue. :-) However, I rarely see a person’s name on the app store, so apparently people are full of dough.

  12. I am a physician and do contract work in NV. I live in AZ and travel to NV to work.

    There is always the chance I will contract in other states.

    I have contemplated starting a NV vs AZ LLC. But this has been a very confusing decision. Here are the issues I have been grappling with.

    1) Operating costs to do this in nevada appear much greater. AZ apparently has no annual fee and requires no annual report.
    2) If i do an LLC in AZ but am working out of NV (or other state) would i have to also register a foreign corporation in NV (and other states) as well? If that is the case i’m forced to do NV now regardless.
    3) If using the LLC a pass through entity (S designation) do I pay taxes in AZ at the corporate rate or lower individual rate?
    4) If i did move to nevada later how hard is it to move the LLC to nevada? Part of the reason I was also considering NV was pre emptivly puting it there just in case I moved later – since I travel a lot.

    Thanks for all the great information you’ve posted here.

    • Hi Tim, I hear you. Deciding on something like this requires a good deal of thinking and strategy. 1. You’re correct, AZ is much cheaper than NV. 2. This likely won’t be the case. You should be okay operating your AZ LLC for your contract work in NV. However, there could be some document in your line of work that requires some “NV specific” piece of info, and then that changes thing. You may want to speak with the company who hires you about this. 3. You’ll need to speak with an accountant on this. We can’t provide tax info. 4. It’s kind of a pain to be honest. You can either register as a foreign LLC, dissolve the AZ LLC and form a new NV LLC, or redomesticate (move) the LLC.

  13. Hello, I’m planning to file an LLC in Michigan and I see from the table the filing fee is $50 and the annual fee is $25. Is there another cost to create the LLC or is it simply just the $50 then the fee to renew it annually.

    • Hi Christopher, nope, there is no other cost. Just $50 to file the Articles of Organization, then $25 every year. Once the Articles of Organization is approved by the Corporations Division, the LLC is “born”. Hope that helps!

  14. Hey Matt, I have an llc and it just seems like there are more and more surprises of fees and stuff and I really want to be on top of my stuff so i wanted to know if you could please find time to help me figure this out.
    Thank you!

    • Hey Cameron, what kind of questions do you have about fees? What fees are you referring to?

  15. First Thanks Matt for your help!
    I am planning to set-up an LLC for my consulting on analytics and data science and would like to know which state is more advantageous in term of taxes “Tax haven”. I heard Wyoming is one of the best place to register an LLC. I am a Florida resident and wondering if it still advantageous to register my LLC in Wyoming or any other “Tax haven” states.

    • Hey Yve, you’re welcome! Thanks for the nice comment. I actually recommend forming the LLC in Florida, where you reside and will legally be doing business. Taxes are paid where the money is made, so even if you form an LLC in Wyoming, you’d have to file a tax return in Wyoming and apportion the income to Florida. On a positive note though regarding Florida, Florida has no personal income tax, so again, you’re likely better off just forming in your home state. We’ve expanded upon this here: best state to form an LLC. Hope that helps!

  16. 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?

    • 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.

  17. 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!


    • 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!

  18. 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?


    • 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.

  19. 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?

    • 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!

  20. 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?

    • 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!

  21. 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?

    • 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.

  22. 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.


    • 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.

  23. 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?

    • 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.

  24. 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?

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

    • 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.

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


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

  26. 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?


    • 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.

  27. 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.

    • 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).

  28. 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!

    • 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.

  29. 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.

    • 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.

      • 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.

  30. 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.

    • 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!

  31. 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!

    • 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.

  32. 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?

    • 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?

      • 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

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

  33. 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.

    • 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 :)

  34. 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..

    • 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).

  35. 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?

    • 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.

  36. If the properties are out of USA and not generating any revenue for the time being, would I pay taxes for these if I register llc in New Mexico for example and register these properties under this llc?

    Thanks a bunch :-)

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

  37. Hi,

    First of all, thanks for all the great advice!
    I am a non US resident and looking to open an LLC in Delaware or Arizona.
    My main purpose (online payment gateway) does not require me to travel to that state for business. The only thing I need is a bank account.
    I travel to california often and could i open the bank account on behalf of the company in California or would I need to travel to Delaware/Arizona for that purspose?

    • Hi Ramit, in order to open a Delaware or Arizona bank account from California, first, make sure your desired bank has locations in both states. Then call the location you would go to in California and ask them about opening a Delaware or Arizona account from their California branch office. Let them know that you formed an LLC in either Delaware or Arizona. Hope that helps.

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

  39. Hi, I want to form an LLC to transfer a vacation home in KY to leave it to my children and grandchildren. I see that the annual fee in KY is now $175/year. I am wondering that since my LLC is not really going to do business nor creating income, maybe I should form it in another state that has a lower or zero annual fee, and let it own the property in KY. I’m not sure though, can you please explain further? You can email me too. Thanks.

    • Hi Joe, if you want to pass a property onto children and grandchildren, we recommend speaking with an estate lawyer. The LLC certainly provides liability protection, but you may want to couple it with a trust for example, in order to help mitigate taxes. Regarding filing out of state, if the property is not generating revenue, you should be okay to hold title in an out-of-state LLC (since the LLC is not “doing business” in KY), but you’ll need to speak with an attorney to confirm this as the “doing business” laws can be a bit ambiguous and open-ended… and they vary from state to state. Apologies we couldn’t be more specific here, but I hope that helps a bit.

  40. 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.


    • 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.

  41. Hi Matt,

    I was googling for information on LLC and found your article very useful. I have some questions however. Currently I already have incorporated a LLC in Delaware, which I used for doing ecommerce online, by the way I am a non-US resident. However I missed the deadline for paying the tax (June 01) and if I am to pay the tax now, it will cost me an extra penalty of $200, which sum up to $500+. The cost is too expensive and I am looking to change the LLC to another state. Can I do this? Can I just ignore the tax and let the Delaware state removed the current LLC from their records? Or do I need to approach the Delaware state and send in a request to remove this current LLC from their records? I would then like to incorporate this LLC (with the same name) in another state with a lower yearly maintenance tax cost. Is this legally allowed? I see that you mentioned “New Mexico, Delaware, and Wyoming are popular options for non-US residents” in your replies above. Also, when I incorporated a LLC in a state, can I have the mailing address (for sending and receiving some parcels and letters for the LLC) in another state? Or I need the mailing address to be in the same state? Thanks for the advise.. :)

    • Hey Mattew, with Delaware, it’s best practice not to let the LLC just sit, as it will accrue penalties and interest. The tax is $300 per year, the penalty is $200 per year, and the 1.5% monthly interest comes out to about $90 per year. If you let the LLC just sit, after 3 years, the state will revoke the LLC and the $1,770 becomes a debt owed to the state. The state has the right to collect this debt. There is some ambiguity as to how that debt is collected and if it actually does get collected, but again, the state has the legal right to settle the debt.

      The cleaner way to do things, is to file an LLC Dissolution (instructions here). The Dissolution itself is $200, plus you have to pay any unpaid franchise tax + penalties (so roughly $700 total in your case).

      You can certainly form an LLC in another state (with the same name), but this is not “changing” or “moving” the LLC. It’s simply shutting down one legal entity in Delaware and forming another legal entity in another state. And yes, this is legal.

      I recommend considering forming the new LLC under a slightly different (or completely different) name. This will help you keep things more organized when it comes to logistics and paperwork.

      In most states, the only “in state” address that is needed will be the Registered Agent address. Your mailing address can be located in any state. The Registered Agent address will be used for legal and court mail, called Service of Process (and hopefully you don’t get a lot of that). The mailing address is where parcels and letters for your LLC will be sent.

      p.s. The proper verb to use is “form” an LLC, not “incorporate”. Incorporate means to form a Corporation.

      Hope that helps. Let me know if you have any followup questions.

      • Hi Matt,
        Thanks for the informative article. I am looking to form a LLC but my situation is a little complicated. I am currently based in California but moving to Arizona in 2 months. I will be in Arizona for 2 months and then travelling through 5 states in the next 6 months and then back to Arizona but not indefinitely. I am in e commerce. Where would you suggest I form my LLC in?

        • Hey Usha, are you a California resident, with a California driver’s license, and do you pay state taxes in California? Also, after these upcoming travels and time in Arizona, will you be returning to California? If you’re a resident of California, will you be keeping that state as your residency even while spending time in Arizona?

          • Hey Matt, Thanks for responding. Yes I am a California resident till May this year, no drivers license, not US citizen but PR and yes I pay state taxes in California. I wont be returning to California after my Arizona travels. Any advice?

            • Hi Usha, I would suggest waiting until you establish your next state of residency before forming an LLC, then establish the LLC in the new state where you will reside after moving out of California. California is very strict about “doing business” in CA and is known for imposing the $800 annual franchise tax if you’re running an out-of-state LLC from California (and even if just for a few months). For more details on how strict California is about “doing business” in the state, please see my reply to Josh’s comment on this page. So if you can wait to form your LLC, wait. If not, consider forming the LLC in the new state and registering as a Foreign LLC in California, paying the annual franchise tax and any other fees/tax filings, then later cancelling your Foreign LLC registration in California after you setup residency in the next state (and cut all ties from California). Hope that helps.

  42. Hi pls I live in Nigeria and i want do Dropshipping business using bigcommerse to sell the product online in USA. Therefore I need to register my business as llc in order yo run this business.
    Pls what is your advise. Tanks

    • Hi Abdulrashid, there are no us-citizenship or us-residency requirements to forming an LLC in the US. If you have a friend or family member located in the US, that state may be a good option. If you don’t know anyone in the US, the 2 most popular states we see foreigners using are Wyoming ($100 to form/$60 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. Getting an EIN and banking are a bit different. Here’s 3 helpful resources for you:
      how to get an LLC EIN without SSN
      non-US resident opening bank account
      IRS form 5472 for foreign-owned SMLLC

  43. Do you know anything about self directed IRA’s and LLC’s.. specifically… how does the Franchise Tax in Texas effect that… since IRA’s pay zero Tax. Wondering what state I should set up my SDIRA LLC in?

    • Hi David, we do. If you’re purchasing an asset, such as real estate, it’s best to form your IRA/LLC in the state where the asset is located. If not, it’s generally advisable to form the IRA/LLC in the state where you reside. Since the LLC is owned by your IRA (more specifically, your custodian for your benefit) and your LLC is its own entity, it’ll still need to file the franchise tax report.

  44. I have an online business where I provide webdesigning, seo, website promotion, social marketing etc business, I am located in India, I want to setup an LLC in USA, can you suggest me the best and most economical place to start the LLC, I will be operating the business from India, I wont be working in the US. All my work is delivered through email and online.

    • Hi Anand, we cannot pin-point an exact state for you, but most of the foreigners we work with form their LLC in Wyoming, Delaware, or New Mexico.

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

        • Hi Anand, we don’t offer a filing service at this time.

          • Hi, Matt. I’m Jerome, I have a similar issue.
            I’m a web developer and entrepreneur from the Caribbean, Jamaica. I’m working on building an online business and learned that I’ll need to have business credit cards and accounts in a US bank in order to set up my payments for my store, (PayPal isn’t an option for me in Jamaica, and the platform I’m using to host my store – Shopify, requires that I open it with a credit card). – I have done initial filing in Wyoming, got all my company docs, but I’m having issues opening a bank account from outside the states, I understand I may have to qualify for doing business in states outside of Wyoming, (I’m looking at Florida because it is way more accessible than trying to fly into Wyoming just to open an account) – would you be able to help with qualifying in Florida for an LLC. ?

            • Hey Jerome, thanks for the details. Yea, the banking stuff can be a serious pain. There were also some soft updates in a number of banks this spring 2018 asking for more proof of address. Check out this article we put together and let me know what you think (please comment there): non-US resident bank account for an LLC. I recommend that before you file a Foreign LLC qualification in Florida (which is a good idea by the way), you call a few banks and check on all requirements.

              • Okay, Thank you for looking into my question Mat!
                Yes, I’m learning it’s quite tricky from state to state, bank to bank and even at the individual branch level! Sigh… I’ll have a read through the recommended articles and get back to you. Thank you again!

                • Yup, there is a ton of variance among banks and their branches. I also sent you an email. I’m very curious as to what you come up. Any updates on your research/phone calls?

  45. 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

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

    • Hi Paul, yes, there are a few, but we don’t have them listed out yet and I don’t have them memorized. This is a good idea for an article we are considering. Thank you.

  47. Hi Sir,
    I am a physician working as an independent contractor, payment via 1099. I am working in Illinois currently. I want to set up an LLC however I will be remaining in IL for another 2 months then moving to PA. I would like to take advantage of the tax benefit for those 2 months without paying double fees. I have an address in PA, can I set up in PA and use the EIN to get paid for the 2 months then move to PA. Essentially make the PA LLC and provide services in IL. It’s a consulting service, I provide medical care. Please let me know. Thanks

    • Hi Jay, in your situation, I’d setup the Pennsylvania LLC. Having a PA LLC does not prevent you from engaging with clients in other states. Are you required to be licensed by the state to provide this medical care? If so, and depending on PA’s laws, you may need to form a Professional LLC (PLLC) instead of a “regular” LLC.

  48. Aloha Matt! I am looking at starting an LLC staffing company here in Hawaii. I know that I will be moving next year, I am not sure to which state yet. I know I can move my LLC by filling out a foreign LLC form. Which state will I have to pay (if any) annual fees to? Thanks!

    • Aloha Chris! There are actually 3 ways to move an LLC (depending on the state). 1) Register current LLC as foreign LLC in new state. 2) Form new LLC in new state + dissolve old LLC. 3) Domesticate LLC into new state and then dissolve old LLC. Hope that helps.

  49. Hello Matt,

    I’m from Sri Lanka & a non-USA resident .

    I need to start an eCommerce site. Without EIN how I supposed to pay sales taxes?

    What is the suitable state, which has the lower annual maintaining cost, when registration of an LLC is compulsory?

    Thanks for publishing this article.

    • Hey Autumn, you can obtain an EIN, even if you don’t have a US social security number, by mailing or faxing (we recommend fax) Form SS-4 to the IRS and on line 7B write “Foreign”. But make sure only to apply for the EIN after your LLC has been approved. Regarding which state is best, we’re unable to tell you which exact one to go with, but most of our international filers choose the state in the US where they are actually doing business. If they are not physically doing business in any US state, Delaware and Wyoming are popular choices for non-US citizens and non-US residents. Delaware is $90 to form, then $300 every year. Wyoming is $100 to form, then $60 every year. I hope that helps!

      • Hello Matt,

        I will not be presenting physically in Wyoming, in the immediate future. I’m writing from Sri Lanka.

        Can I register my business as a LLC , remotely?
        Can I pay taxes to IRS remotely?


        • 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.

  50. Very helpful post! Thank you! I have a website that I want to make an LLC for personal asset protection. I live in California, but that $800 annual fee is really high for how much revenue my site generates. Can I form in, say, Arizona and avoid the California annual fee? Or would I end up having to pay the California fees anyway?

    • You’re very welcome Leah! I hear you… the cost of doing business in California is high, but sounds to me like you are doing business there, so yes, you’d end up paying the CA fees anyway. It’ll actually cost you more if you form out of state, since you’ll then be required to file a Foreign LLC in California, as well as fees in the formation state, and possible Registered Agent fees in the formation state as well. I recommend these two articles as followups for more information: Domestic LLC vs Foreign LLC and what is doing business in California. Hope that helps! Let me know if you need anything else.

      • Hi, Matt:

        We live in CA, we have 7 rental properties total, 2 in CA, 2 in FL, 2 in AZ and 1 in NV, my question is can we just register 1 LLC in CA and put all 7 properties under it? we have 5 million umbrella insurance besides 300K insurance for the individual properties. Is that any law that we have to set up a LLC in the state where the rental property locates. I know it might be the best way to do it to diversify the risk but are we required to do so . we do the LLC for the benefit of the tax pass through . Thanks a lot

        • Hi Shelly, you’re likely legally doing business in FL, AZ, and NV (and CA of course). So you either need to form an LLC in California and then register as a Foreign LLC in each state, or form Domestic LLCs in FL, AZ, and NV and have them be owned by your California LLC. Keep in mind though, you’d need to setup all your LLCs first, then retitle each property. Here’s two related articles: Domestic LLC vs Foreign LLC and when to form an LLC for real estate investing. Hope that helps.

  51. 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.

    • 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).

      • Hello I’m a photographer and I shoot in Idaho and Washington, my residence is in Idaho. But I mainly shoot in Washington. How would I go about that? Get two LLCs?

        • Hi Amanda, you wouldn’t need two LLCs in this case, since it’s one business. The way to think about it is that your business (your LLC) needs authority to transact business in the states where it’s transacting business. You could form an LLC in Idaho (it’s usually easiest to form the LLC in your home state) and then register your LLC as a foreign LLC in Washington. Having said that, you may be okay with just an Idaho LLC as shooting in Washington may not be considered “transacting business”. Hope that helps.

  52. 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.

    • I have not done business on either but am countering an offer for my 1st flip property in NJ & the 2nd here in FL. As well, I moved here from NJ to FL July 2016. I just watched your ‘best state’ video so thanx. However, should I file in FL as domestic “AND” in NJ as foreign or “ONLY” in FL is fine?
      So Confused!
      Thanx for your help in advance!

      • Hey CKGOOD, since you’re doing business in NY and FL, you can either form a domestic LLC in both states, or form a FL LLC and register it is a Foreign LLC in NJ. Hope that helps!

    • Hey CKGOOD, when engaging in real estate investing, you are legally doing business in that state, so you are supposed to form the LLC in the state where the property is located. A more advanced option is to form an LLC in a state with stronger asset protection (like Wyoming), then have your Wyoming LLC own both your NJ LLC and your FL LLC.

  53. I am looking to form a LLC in Michigan, but will be doing work outside of the state, more than likely in Indiana and Illinois, but the cost in Michgan is much less, do I have to file for LLC in those states as foreign being that my home office will be in Michigan? Thanks for the help, love the videos

    • Hi Jeromy, I’d form the LLC in MI to start, and then dig into what constitutes “doing business” in Indiana and Illinois. “Doing business” can be a bit gray at times, but here are the relevant statutes. Illinois: 805 ILCS 5/13.75 (2014). Indiana: Indiana Code 23-1-49-1. Hope that helps!

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

    • Hey Kim, each state has different penalties. Louisiana 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.

  55. Hi Matt, I’m looking to form an LLC in Florida and I’m trying to decide if filing an LLC through Legal zoom or doing it myself would be more cost effective. I like the idea of legal zoom to save time but do they include all of my state and city filing fees into the overall cost? If so how much will that be? And going forward will I have to file my state and city fees on my own or does legal zoom handle all of this and you pay them a yearly or monthly fee for their service? Thanks you for all of your videos and everything you do. Is much appreciated, especially for all us start ups that are on a tight budget:)

    • Hey Talo, thank you for the kind words! When you say state and city fees (that could possibly be recurring), are you only talking about LLC fees? If so, there are no LLC fees paid to a city to form. You pay a one-time fee (not monthly or recurring) to the state. Might you be referring to taxes or something else? LegalZoom’s pricing includes the state filing fee. It’ll be more cost-effective to file yourself of course, but it does take more time, so it’s a trade off. Hope that helps! Let me know if you need anything else.

  56. Hello,
    I live in SC and am looking to buy a rental properties (up to 5 properties eventually) in MO. My question is, would I set up a MO LLC for each property? Could I also have another LLC, say for example, a NV LLC to own all the MO LLCs? Would the NV LLC have to register in MO as a foreign entity? Does this seem viable? Thanks.

    • Hey George, you can put each property in a MO LLC, or clump them together. MO LLCs are quite affordable, so one property per LLC is an option. MO LLCs also do not have Annual Reports. Yes, you can have an out-of-state LLC own the MO LLCs as a holding company. I saw your other comment on the best state to form an LLC page regarding 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.

  57. Hello,

    I would like to set up an LLC , i will be doing consulting assignments (and not establishing an office/local presence in any particular state) so i have flexibility in choosing the state in which to incorporate.

    Could you please advice which state to set up the company based on lowest filing cost and recurring annual fees.

    Thanks in advance and best regards

    • Hi RD, if you are a US resident, that is incorrect. Just because you don’t have an office location and you do consulting, does not exempt you from state laws of “conducting intrastate business”. That’s a big misconceptions about LLCs. If you form an LLC out of state, you’ll be required to register that LLC as a Foreign LLC in your home state. Now you have 2 LLC filing fees and 2 Annual Reports (if applicable). Having said that, if you are a non-US resident, you can pick any state you’d like :) Popular options for non-US residents are to pick a state where you may actually do business in, a state you visit (to make opening a bank account easier), or a state where you have family and friends. If none of those apply, New Mexico, Delaware, and Wyoming are popular options for non-US residents. Hope that helps! Let me know if you need anything else.

      • …an interesting and useful discussion! I have also heard that if you are American citizen living abroad (non-US resident) but running a single member US Llc, the moment your entity elects s-corp status, then you must choose “some state” from which to run payroll. Is that actually the case, and if so, then how does one select a state such that state tax liabilities are reduced for both the Llc owner and the s-Corp Llc??? In such situations shouldn’t one run payroll from the state where the LLC was formed in order to reduce possible additional state registrations and annual report fees?

        • Hey John, excellent followup questions! In terms of where is best for S-Corp election and payroll, we don’t get too detailed on that, due to the nuances and variations with taxes. I recommend speaking with a few accountants. You might want to use this technique. Apologies I couldn’t be more specific.

      • Hi Matt. Thank you for your work. I also have a consulting business with no “brick and mortar” establishment (in TN) but I pay mild city and county taxes (something like under $10 apiece) to use the square footage of my old sunporch as a business office, and I note utility costs for the business as a % of space used in my federal taxes.

        I’m considering moving it to TX where I currently live, but I’m not sure that’s the right choice. Your thoughts?

        • Hey KS, you’re welcome :) If you are doing business in Texas, it’s best to setup your LLC there. “Moving” an LLC can be done a few different ways. 1. Dissolve old LLC, form new LLC. This is the cleanest, however, you’ll need a new EIN and new bank account in Texas. 2. File Foreign LLC qualification (allows TN LLC to do business in TX). You can use same EIN and bank account, however, this is expensive since Texas’s Foreign LLC filing fee is $750 and you have to pay Annual Report fee and maintain the TN LLC. 3. “Redomesticate” (called a ‘conversion’) in Texas. You can keep EIN and bank account, but the filing is more complicated. Hope that helps.

  58. I am looking to create 2 LLC’s. I am in CA but as you know CA is very expensive. Can we talk for quick 5 minutes so I pick the right one? If yes, pls suggest a time and no.

    • Hi Nitin, we get too many questions to offer phone support at this time. Feel free to leave your question here though. Thank you for your understanding.

      • 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.

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

            • 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!

              • Is it okay to ring you as well? I am very confused by the double LLC issue, especially if the LLC is basically a holding company and not revenue generating.

                • Hi Eunice, apologies, but at this time we receive too many inquires to offer phone support. Do you want to try leaving your question here?

        • I feel your pain. Can you base your llc in another state? Or would CA still charge you? Another idea would be to leave Commifornia….

      • May I call you? I have a complex question and the q & a doesn’t really cover it.


        • Hi Eunice, at this time we cannot offer phone support due to number of questions we receive across the website. Apologies about that. We may open phone support back up in the future. Anything I can help you figure out here though?

      • Hi Matt,

        Thanks for the article !
        I am looking to form a LLC and would require some help. Can we please speak to help me get clarity for the process.

        • You’re welcome MW! We don’t offer phone support at this time (it would take all day to answer everyone’s questions). However, feel free to spell it out here and we’ll do our best to point you in the right direction. Thank you for your understanding.

      • Hi Matt. I’m wondering if it’s normal to be required to file an annual report less than 5 months after the LLC was formed. I opted to end my fiscal year in December 2022 and Tennessee wants me to file and pay April 1st. Thanks!

        • Hi Julie, if your LLC went into existence in 2022, then you have to file an Annual Report in 2023. If December 31 is the end of the fiscal year, then the Tennessee LLC Annual Report is due by April 1st. Having said, if you received a letter in the mail, double-check that it’s actually from the Secretary of State and not a “spam” place that sounds like the Secretary of State. You can spot the junk mail because it usually says “we are not the government” and “this is not a bill”. Hope that helps.


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

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