Have you registered your small business as an LLC? If so, it is important to know what the annual fees are for this type of company.
The article will discuss some of the main points about LLC Annual Fees and how they can be calculated and filled- irrespective of whether you’ve formed an LLC by yourself or through a reliable LLC service provider.
Moreover, LLC annual fee is different from the annual tax. So, regardless of how you chose to be taxed eg: disregarded entity, S Corp, or C Corp, etc, you must pay LLC annual fee set by each state.
Do You Know! Many people confuse LLC annual fee with the LLC filing fee or formation cost. If you also think these are the same? Well, read this article till the end to know the difference and their cost by each state.
The most important part of forming an LLC is deciding on the yearly fee. It’s a decision that should be made with care and consideration for both short-term and long-term goals. This article takes a look at what you need to know about annual fees so you can make the best choice for your company.
In order to form a limited liability company (LLC), entrepreneurs pay an LLC filing fee while submitting their articles of organization to the state. This is a one-time fee that you need to pay.
On the other hand, LLC’s annual fee is what you pay while submitting an annual report due each year. Thus, the annual report is just like a census through which the state checks your LLC up and collects necessary information every year.
Each state has its own requirements to submit an annual report, annual fees vary from state to state, and sometimes domestic LLC annual fee is different from foreign LLC annual fee. This article will walk you through the annual fees of all 50 states and how you can submit them.
However, if you want to save time and want professional services to submit an annual report on your behalf, you can hire any top-rated LLC services like ZenBusiness and LegalZoom to get it done accurately and seamlessly. So, let’s dig deep into LLC annual fee.
What is LLC Annual Report?
LLC annual report is used to collect the structural information and necessary contact your domestic or foreign LLC. Different states term this report differently. The following are a few terms used alternatively with the LLC annual report;
- Annual Registration Fee
- Annual Certificate
- Business Privilege Tax Return
- Decennial Report
- Annual List of Members
- Franchise Tax Report
- Biennial Report
- Periodic Report
- Biennial Statement
LLC Annual Fee Requirments
Annual reporting requirements and fees vary from state to state. Some states don’t require annual reports or fees at all.
But in most states, you need to submit one report per year to the secretary of state. Generally, you are required to submit the following information through the annual report of your LLC;
- Your LLC name,
- Principal office address,
- Registered agent information,
- Member/Manager names and addresses.
Why LLC Annual Report is Important?
Whether you are legally doing business as a domestic LLC or a foreign LLC, you must plan on submitting an annual report. This is a crucial step in running your business in a state-compliant fashion.
Through the annual report, the state updates the most recent information in your LLC’s record. This information lets the state reach you with important information, including;
- Your business status,
- Service of process
- Upcoming filings,
- Taxes, etc.
Suppose your current agent resigned, or you changed your registered agent, or your registered agent is the same, but their address has changed. What if you do not update the state about this change?
Important: You can also review the top companies to get the most reliable registered agent service at hand.
Many crucial documents will not reach you if you fail to keep the state informed and do not update their contact information. Missing a single communication from the state can end up falling out of your company’s good standing registered as LLC. In the worst case, your LLC would be administratively dissolved.
LLC Annual Fee and Franchise Tax by Each State
LLC annual fees range from $10 to $800. However, as of 2021, the average LLC annual fee in the USA is $90. Here is the list of LLC annual fees by state:
| Alabama LLC $100 minimum annual franchise tax | Indiana LLC $30 biennial report | Nebraska LLC $10 biennial report | South Carolina LLC $0 (no fee) |
| Alaska LLC $100 biennial report | Iowa LLC $60 biennial report | Nevada LLC $150 annual report, plus $200 business license fee | South Dakota LLC $50 annual report |
| Arizona LLC $0 (no fee) | Kansas LLC $55 annual report | New Hampshire LLC $100 annual report | Tennessee LLC $300 minimum annual report (plus $50 per member, if >six members),plus $100 minimum franchise tax |
| Arkansas LLC $150 annual report | Kentucky LLC $15 annual report, plus $175 minimum annual limited liability entity tax | New Jersey LLC $50 annual report | Texas LLC Annual franchise tax (varies depending on net surplus) |
| California LLC $20 biennial report, plus $800 minimum annual franchise tax | Louisiana LLC $30 annual report | New Mexico LLC $0 (no fee) | Utah LLC $20 annual report |
| Colorado LLC $10 annual report | Maine LLC $85 annual report | New York LLC $9 biennial report, plus $25 minimum annual LLC filing fee | Vermont LLC $35 annual report |
| Connecticut LLC $80 annual report, | Maryland LLC $300 annual report | North Carolina LLC $200 annual report | Virginia LLC $50 annual report |
| Delaware $300 annual tax | Massachusetts $500 annual report | North Dakota $50 annual report | Washington $60 annual report |
| Florida LLC $138.75 annual report | Michigan LLC $25 annual report | Ohio LLC $0 (no fee) | Washington D.C. LLC $300 biennial report |
| Georgia LLC $50 annual report | Minnesota LLC $0 (no fee) | Oklahoma LLC $25 annual report | West Virginia LLC $25 annual report |
| Hawaii LLC $15 annual report | Mississippi LLC $0 (no fee) | Oregon LLC $100 annual report | Wisconsin LLC $25 annual report |
| Idaho LLC $0 (no fee) | Missouri LLC $0 (no fee) | Pennsylvania LLC $70 decennial report | Wyoming LLC $25 minimum annual report |
| Illinois LLC $75 annual report | Montana LLC $20 annual report | Rhode Island LLC $50 annual report |
Aisha Noreen is an owner of a small business with more than 9 years of experience in the marketing industry. With the wisdom of an old soul, she always seeks innovation and mind-blowing ROI techniques. Her unique approach helped many small businesses thrive and she can surprise you in many ways as well. Believe it or not, her energy, passion, and creativity are contagious enough to transform your business and take it to another level.