LLC Annual Fees by State

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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.

The average LLC annual fee in the US is $101.

The LLC annual fees have been recently reviewed and are up-to-date as of August 2019.

Most states call this the Annual Report, however, it has many other names:

– Annual Certificate
– Annual List of Members
– Annual Registration Fee
– Biennial Report
– Biennial Statement
– Business Privilege Tax Return
– Decennial Report
– Franchise Tax Report
– Periodic Report
– and more

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

What’s the LLC Filing Fee?
​The LLC filing fee is a one-time fee paid to the state to form your LLC.

What’s the LLC Annual Fee?
​The LLC annual fee is an ongoing fee paid to the state to keep your LLC in compliance and in good standing. It’s usually paid every 1 or 2 years, depending on the state. This fee is required, regardless of your LLC’s income or activity. Said another way: you have to pay this. Failure to pay the annual fee will result in the state dissolving (shutting down) your LLC. This is the case in over 90% of the states.

Need help with your LLC? Have a professional LLC service file for you:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

LLC Annual Fees:

State LLCLLC Filing FeeLLC Annual FeeDuePayable To & Form Name
Alabama LLC$183$100 minimum2.5 months after formationAL Department of Revenue, Initial Business Privilege Tax Return
Alaska LLC$250$100Biennial, January 2ndAK Department of CCED, Biennial Report
Arizona LLC$50$0No annual fee + no report dueN/A, N/A
Arkansas LLC$50$150Annual, May 1stAR Secretary of State, Franchise Tax Report
California LLC$70$800 + $20VariousCA Franchise Tax Board, Annual LLC Franchise Tax + Stmt. of Information
Colorado LLC$50$105 month window surrounding
anniversary month
CO Secretary of State, Periodic Report
Connecticut LLC$160$20Annual, anniversary dateCT Secretary of State, Annual Report
Delaware LLC$90$300Annual, June 1stDE Dept. of State, Annual Franchise Tax
Florida LLC$125$138.75Annual, May 1stFL Department of State, Annual Report
Georgia LLC$100$50Annual, April 1stGA Secretary of State, Annual Registration Fee
Hawaii LLC$50$15During quarter of anniversary dateHI Business Registration Division, Annual Report
Idaho LLC$100$0 (must file an information report, no fee though)Annual, anniversary monthID Secretary of State, Annual Report
Illinois LLC$150 (used to be $500)$75 (used to be $250)Annual, anniversary monthIL Secretary of State, Annual Report
Indiana LLC$90$50 (by mail) or $31 (online)Biennial, anniversary monthIN Secretary of State, Business Entity Report
Iowa LLC$50$60 by mail or $45 online (used to be $45 by mail and $30 online)Biennial, April 1st of odd yearsIA Secretary of State, Biennial Report
Kansas LLC$165$55Annual, April 15thKS Secretary of State, Annual Report
Kentucky LLC$40$15Annual, June 30thKY Secretary of State, Annual Report
Louisiana LLC$100$35Annual, anniversary monthLA Secretary of State, Annual Report
Maine LLC$175$85Annual, June 1stME Secretary of State, Annual Report
Maryland LLC$100$300Annual, April 15thMD State Dept. of Assessments, Personal Property Tax
Massachusetts LLC$500$500Annual, anniversary monthMA Secretary of the Commonwealth, Annual Report
Michigan LLC$50$25Annual, February 15thMI Dept. of LARA, Annual Report
Minnesota LLC$160$0 (must file an information report, no fee though)Annual, December 31stMN Secretary of State, Annual Report
Mississippi LLC$50$0 (must file an information report, no fee though)Annual, April 15thMS Secretary of State, Annual Report
Missouri LLC$105$0No annual fee + no report dueN/A, N/A
Montana LLC$70$20Annual, April 15thMT Secretary of State, Annual Report
Nebraska LLC$105$10Biennial, April 1st of odd yearsNE Secretary of State, Biennial Report
Nevada LLC$425$350Annually, anniversary monthNV Secretary of State, Annual List of Members + Business License
New Hampshire LLC$100$100Annual, April 1stNH 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 15thNC Secretary of State, Annual Report
North Dakota LLC$135$50Annual, November 15thND Secretary of State, Annual Report
Ohio LLC$99$0No annual fee + no report dueN/A, N/A
Oklahoma LLC$100$25Annual, anniversary monthOK Secretary of State, Annual Certificate
Oregon LLC$100$100Annual, anniversary monthOR Secretary of State, Annual Report
Pennsylvania LLC$125$70Every 10 yearsPA Department of State, Decennial Report
Rhode Island LLC$150$50Annual, September 1st - November 1stRI Secretary of State, Annual Report
South Carolina LLC$110$0No report due unless you file taxes as an S-CorpN/A, N/A
South Dakota LLC$150$50Annual, anniversary monthSD Secretary of State, Annual Report
Tennessee LLC$300$300 minimumAnnual, April 1stTN Secretary of State, Annual Report
Texas LLC$300$0Annual, May 15thTX Comptroller, Public Information Report + Franchise Tax
Utah LLC$70$15Annual, anniversary monthUT Department of Commerce, Annual Report
Vermont LLC$125$35Annual, March 15thVT Secretary of State, Annual Report
Virginia LLC$100$50Annual, anniversary monthVA Corporation Commission, Annual Registration Fee
Washington LLC$200$60Annual, anniversary monthWA Secretary of State, Annual Report
Washington DC LLC$220$300Biennial, April 1stDCRA, Biennial Report
West Virginia LLC$100$25Annual, July 1stWV Secretary of State, Annual Report
Wisconsin LLC$130$25Annual, anniversary quarterWI Secretary of State, Annual Report + Business Tax Registration
Wyoming LLC$100$50 minimumAnnual, anniversary monthWY Secretary of State, Annual Report

Video Transcript:

Hey, folks. Matt Horwitz at llcuniversity.com. I hope you’re doing well. Today, we’re going to talk about the LLC annual fees by state, all 50 states. I am referencing a table that we have on our website. I just printed it out to read it to you. This is a little bit ridiculous to make a video about all this stuff, but hey. Some people like videos and it’s easier to consume. I’m going to go a little bit quicker here, because there’s a lot of information to cover. Again, probably 94% to 95% of the states all have an annual report or some iteration of the annual report.

Most of the time, it’s called annual report. Sometimes it’s called an annual certificate, an annual list of members, an annual registration fee, a biennial statement, a business privilege tax return, a decennial report, a franchise tax report, a period report, AKA you have to send the state money every one year, every two years and in Pennsylvania, for example, every 10 years to basically keep your LLC in good standing, and in compliance … This is very serious stuff. Don’t take this lightly. If you do not file your annual report or whatever the requirement is in your state, your state will eventually dissolve AKA shut down your LLC. This is serious business.

Now I’m basically going to quickly go over … For the most part, everyone I’m about to mention is just a fee paid once every year. Now that due date is going to vary. It’s different by every single state. You’re going to have to click through to the website to read this table, because I don’t know if you can see this, but a lot of information. Let’s run for it. Alabama, $100. Alaska, $100. Arizona, $0. Arkansas, $150. California, $800 plus $20. Colorado, $10. Connecticut, $20. Delaware, $300. DC, $300. Florida, $140. Georgia, $50. Hawaii, $15. Idaho, nothing. Well actually, let me stop myself. Some states, even though you pay $0, some … A few states, you don’t have to pay anything or file anything, and those are the good states. Just a few of those. However, there’s a bunch of other states where even though you pay 0, you still have to file a report and some documentation. Again, full details on this table.

Idaho, $0. Illinois, $250. Indiana, $30. Iowa, $45. Kansas, $55. Kentucky, $15. Louisiana, $35. Maine, $85. Maryland, minimum $300. Massachusetts … Oh boy. $500. Massachusetts and California and Nevada are your big boys, wanting $500 and $800 in California. Massachusetts, $500. Michigan, $25. Minnesota, $0. Mississippi, $0. Missouri, $0. Three 0s in a row. Montana, $20. Nebraska, $10. Nevada, $500. New Hampshire, $100. New Jersey, $53. New Mexico, $0. New York, $9. Although New York does have a funny publication requirement. If you need details on that, we do have a video and a post on our website. Again, New York, $9. North Carolina, $200. North Dakota, $50. Ohio, $0. Oklahoma, $25. Oregon, $100. Pennsylvania, $70. However, it’s every 10 years. Again, most of these … I’m not reading off the due dates. Most of these are every year. Some of these are every two years.

Rhode Island, $50. South Carolina, $0. South Dakota, $50. Tennessee, minimum $300. It goes up based on the amount of members your LLC has. Texas, $0. Although they do have a franchise tax document that needs to be filed. Utah, $15. Vermont, $35. Virginia, $50. Washington state, $81. West Virginia, $25. Wisconsin, $25. Wyoming, $50. That’s fun, throwing papers on the floor like that.

Hope this video was helpful for you. If you want all the details about is it every year, is it every other year, is it due on my anniversary month, is it due in April, is it due in June, is it due in January, they’re all due at … It’s all crazy. I wish they would all just make it the same, but they’re all over the board. Hopefully, this is just a quick run through to let you get a feel for what the price is going to be on the annual state renewals that you have to pay every year to your state in order to keep your LLC in compliance and in existence. Hope this video is helpful. Talk to you soon.

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Leave a Comment (268) ↓
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.

92 Comments

  1. Alex November 11, 2017

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

    reply
    • Matt Horwitz November 13, 2017

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

      reply
  2. CHarles November 23, 2017

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

    Thanks

    reply
    • Matt Horwitz November 23, 2017

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

      reply
  3. Robtroilo November 28, 2017

    Hey there,

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

    Thanks,
    Rob

    reply
    • Matt Horwitz November 29, 2017

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

      reply
  4. Robert Troilo December 1, 2017

    Matt,

    Great!

    Thanks for the help!

    reply
    • Matt Horwitz December 12, 2017

      You’re welcome Robert!

      reply
  5. Chrissy December 6, 2017

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

    reply
    • Matt Horwitz December 12, 2017

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

      reply
  6. Yve Martel December 22, 2017

    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.
    Thanks,
    YM

    reply
    • Matt Horwitz December 23, 2017

      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!

      reply
  7. Cameron Bowen January 30, 2018

    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!

    reply
    • Matt Horwitz January 31, 2018

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

      reply
  8. Christopher Hardison February 4, 2018

    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.

    reply
    • Matt Horwitz February 9, 2018

      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!

      reply
  9. Tim February 7, 2018

    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.

    reply
    • Matt Horwitz February 9, 2018

      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.

      reply
  10. Greg February 12, 2018

    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 $180 and the annual fee is $81. I was just reading the PDF application form and it states that trade name registration is $5, and filing fee is $19. How an earth did you get $180 out of this!? Plus, I have to renew this every year for 81 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 $180 registration and $81 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…)

    reply
    • Matt Horwitz February 14, 2018

      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. Try googling “how to monetize free apps”. Advertising is a common method, and there are a few other examples as well. Hope that helps.

      reply
      • Greg February 14, 2018

        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.

        reply
        • Matt Horwitz February 14, 2018

          Hi Greg, I see what you’re saying. Welcome to the world of business :)

          reply
  11. Frances February 15, 2018

    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.

    -f

    reply
    • Matt Horwitz February 21, 2018

      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.

      reply
      • Lisha Conny March 19, 2018

        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!

        reply
        • Matt Horwitz March 27, 2018

          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.

          reply
  12. Mike February 27, 2018

    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?

    Thanks

    Mike

    reply
    • Matt Horwitz February 27, 2018

      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 $50 per year. Hope that helps.

      reply
  13. Sharon Sage March 1, 2018

    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,

    Sharon

    reply
    • Matt Horwitz March 2, 2018

      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!

      reply
      • Sharon Sage March 5, 2018

        Thank you very much for that information!

        Sharon

        reply
  14. VASIF March 6, 2018

    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

    reply
    • Matt Horwitz March 10, 2018

      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.

      reply
  15. Tamoor March 11, 2018

    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?

    reply
    • Matt Horwitz March 19, 2018

      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.

      reply
  16. Chuck Pranski March 16, 2018

    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!

    reply
    • Matt Horwitz March 22, 2018

      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 :)

      reply
      • Chuck Pranski March 22, 2018

        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.

        Chuck

        reply
        • Matt Horwitz March 26, 2018

          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.

          reply
  17. Sam March 25, 2018

    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?

    reply
    • Matt Horwitz March 26, 2018

      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.

      reply
  18. AI March 28, 2018

    Hi. Youve mentioned Wyoming multiple times as a state that is most popular among investors to form a parent llc.
    I was just wondering why Wyoming and not the other states with $0 annual tax?

    reply
    • Matt Horwitz March 28, 2018

      Hi Al, the reason for Wyoming’s popularity is it has stronger asset protection laws, most commonly talked about, charging order protection. We haven’t written on this yet, but we will soon. In the meantime if you google search or look on youtube, you can find information. Hope that helps.

      reply
  19. Anonymous April 15, 2018

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

    reply
    • Matt Horwitz April 17, 2018

      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.

      reply
  20. matt April 18, 2018

    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 ?

    reply
    • Matt Horwitz April 21, 2018

      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.

      reply
  21. Sawyer April 19, 2018

    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?

    reply
    • Matt Horwitz April 21, 2018

      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.

      reply
      • Sawyer May 1, 2018

        Thanks a bunch Matt! I appreciate it!

        reply
        • Matt Horwitz May 2, 2018

          You’re welcome Sawyer!

          reply
  22. Silas May 1, 2018

    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

    reply
    • Matt Horwitz May 1, 2018

      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.

      reply
      • silas May 2, 2018

        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?

        reply
        • Matt Horwitz May 2, 2018

          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.

          reply
  23. AI May 8, 2018

    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.

    reply
    • Matt Horwitz May 16, 2018

      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.

      reply
  24. Zvi May 10, 2018

    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?

    reply
    • Matt Horwitz May 16, 2018

      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.

      reply
  25. Vladimir Bozic May 14, 2018

    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

    reply
    • Matt Horwitz May 16, 2018

      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.

      reply
  26. Diane May 24, 2018

    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

    reply
    • Matt Horwitz June 17, 2018

      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.

      reply
  27. Tobias June 6, 2018

    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.

    reply
    • Matt Horwitz December 18, 2018

      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.

      reply
  28. Richard June 10, 2018

    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

    reply
    • Matt Horwitz June 18, 2018

      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.

      reply
  29. Lin June 13, 2018

    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?

    reply
    • Matt Horwitz June 18, 2018

      Hey Lin, California has very strict laws regarding doing business. Strict corporate laws as well as tax laws. Simply by residing in California and making phone calls about your properties is “doing business”. I don’t know the answer to your question though and I’d run this by a few more people. Here’s my thoughts thus far: You’re moving soon and hopefully establishing residency in another state, however, the state-level tax returns you file will likely show the business activity, therefore, notifying the state. Feel free to keep us posted if you find anything definitive.

      reply
  30. Chris July 2, 2018

    What forms of payment does the Sec of State accept for LLC registration? Thanks.

    reply
    • Matt Horwitz August 3, 2018

      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.

      reply
  31. Mike Allen July 6, 2018

    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?

    reply
    • Matt Horwitz August 12, 2018

      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.

      reply
  32. Crystal Wimbush July 7, 2018

    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.

    reply
    • Matt Horwitz August 12, 2018

      Hi Crystal, forming an LLC is not required, so it’s up to you. Hope that helps.

      reply
  33. RGL July 7, 2018

    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

    reply
    • Mike Allen July 8, 2018

      Your best bet is to contact the Montana Dept of Revenue.

      reply
    • Matt Horwitz August 12, 2018

      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.

      reply
  34. Mia D. July 17, 2018

    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.

    reply
    • Matt Horwitz August 12, 2018

      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.

      reply
  35. Lina July 29, 2018

    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.

    reply
    • Matt Horwitz August 14, 2018

      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!

      reply
  36. Linda July 31, 2018

    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?

    reply
  37. Amit August 1, 2018

    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

    reply
    • Matt Horwitz August 15, 2018

      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.

      reply
  38. MM August 21, 2018

    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

    reply
    • MM August 21, 2018

      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

      reply
      • Matt Horwitz August 31, 2018

        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.

        reply
  39. Jennifer August 31, 2018

    Hello,

    New York is $9 every two years? Why did two sources one which is my attorney tell me is $25 annually?

    reply
    • Matt Horwitz October 12, 2018

      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.

      reply
  40. Jacob September 1, 2018

    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?

    reply
    • Matt Horwitz October 12, 2018

      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.

      reply

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