Key Takeaways

  • Annual LLC fees are mandatory charges that LLCs must pay to maintain good standing with their state.
  • Fees vary widely by state and may be called Annual Reports, Franchise Taxes, Biennial Statements, or Periodic Reports.
  • Some states charge flat fees, while others base fees on revenue or member count.
  • Missing deadlines may result in late penalties, interest charges, or administrative dissolution of the LLC.
  • Certain states, like California, Delaware, and New York, have higher or additional filing requirements and fees.
  • LLCs operating in multiple states may owe annual fees in each jurisdiction where they are registered.
  • The method of payment, reporting frequency, and required forms differ by state.

LLC Annual fees — also known as Annual Reports, Annual Certificates, Annual Registration Fees, or Franchise Tax Reports — are fees that businesses pay to the state to keep an LLC in good standing and in compliance. LLCs typically pay them every one or two years; the schedule differs by state. No matter what an LLC's activity or income, paying the fee is a requirement. States can shut down LLCs that don't pay their annual fees.

Basics of an LLC or Limited Liability Company

An LLC has the features of both a corporation and a partnership. The owners are not personally accountable for business debts. An LLC is taxed like a sole proprietorship.

Necessary Documents for Filing an LLC

The required documents for filing an LLC include:

  • The Articles of Organization, which will be provided to the Secretary of the State or another proper state agency
  • An operating agreement, created by LLC members
  • A tax identification number, which can be applied for with the IRS

Factors in Filing an LLC Annual Report

The quickest way to file an LLC annual report, domestic or foreign, is electronically. LLCs that have been cancelled or dismissed cannot file electronically. A business entity may request permission from a manager to update changes such as:

  • Principal address of the LLC
  • A member's address
  • A manager's address

A company isn't required to report certain changes when filing an annual report electronically. These changes include:

  • Name
  • Purpose
  • Duration
  • Registered office's address
  • Registered agent's name

Such changes will be filed on separate forms. 

Possible Expenses for Creating LLCs

The basic expenses will be the state fee and the service fee. The filing fees for an LLC differ by state, which can be changed at any time. Besides these basic fees, some LLC businesses may pay professional service provider fees. All states charge an annual fee to keep LLCs in compliance and in business.

The Secretary of the State provides a Statement of Information form. The company will submit the form, which includes the LLC's annual report.

Annual fees for a few popular states are as follows (accurate pricing as of 2015):

California

  • Within 90 days after formation, LLCs must provide a $20 reporting fee and a statement of information. These are required every two years thereafter.
  • An $800 annual tax is due by the 15th day of the fourth month after an LLC is formed.
  • If an LLC earns income higher than $250,000, it owes an additional LLC tax, which is determined by the income amount.

Nevada

Within 30 days of formation, LLCs must provide:

  • A $150 fee
  • Initial list of managers or managing members
  • Business license application and a $200 fee

Nevada has no state income tax.

Delaware

Delaware has no state income tax. A yearly LLC tax of $300 is due June 1, which begins the year after the LLC formation.

New York

Each LLC is required to publish notice of its formation in two newspapers in the county where it was created. Fees for publication may run as high as $2,000, depending on the area. Along with a $50 filing fee, the company is also required to submit a certificate of this publication to a state agency.

Any LLCs that operate as partnerships pay annual taxes based on total income. This ranges from $25 to a maximum of $4,500.

Annual LLC Fees by State (Updated Rates)

The table below highlights the most recent annual LLC fees by state, including due dates and fee structures. Note that some states refer to these payments as "Annual Reports," "Franchise Taxes," or "Periodic Reports." While most states require annual filings, some operate on a biennial basis (every two years).

State Fee Type Annual/Biennial Fee Due Date
California Annual Franchise Tax $800+ (additional fee for income > $250,000) 15th day of the 4th month after formation
Delaware Annual Franchise Tax $300 June 1
Nevada Annual List + Business License $350 total ($150 list + $200 license) Formation anniversary date
New York Biennial Statement + Publication Requirement $9 biennial + publication fees (up to $2,000) Every two years by the anniversary month
Texas Franchise Tax Report (no fee if under threshold revenue) $0 - variable based on revenue May 15
Florida Annual Report $138.75 May 1
Illinois Annual Report + Franchise Tax $75 report + franchise tax based on paid-in capital By the anniversary month
Washington Annual Report $60 Anniversary date of formation
Arizona No Annual Report for LLCs $0 N/A

Always confirm current rates and due dates with the Secretary of State for your LLC's jurisdiction, as these may change.

For all other states: Contact a local accountant.

Section 50-15 of the Limited Liability Company Act mandates a late fee penalty if an LLC doesn't process the annual report within 60 days of the due date. 

To pay fees, Visa, MasterCard, Discover, or American Express credit cards are accepted. Upon processing of an electronic filing of an LLC annual report, all fees that are due must be paid. To file an annual report electronically, an expedited fee of $50 is also required.

If a company refuses to pay the fees, the annual report filing will be void and the company will be in a delinquent status.

Why You Need to Pay an LLC Annual Fee

It's required to pay annual fees to keep an LLC in good standing and compliance with the state. A state can dissolve an LLC if the annual fee isn't paid. 

Check your state requirements for fees and deadlines to maintain compliance and to keep your LLC running.

Annual LLC Fees for Foreign LLCs

If your LLC is registered as a foreign LLC in other states (meaning it operates outside of its state of formation), you may be required to:

  • File foreign annual reports in each state where you are registered.
  • Pay additional annual or biennial fees in those states.
  • Maintain a registered agent in each state of registration.

The rules for foreign LLC compliance vary, so always check with the Secretary of State or Department of Revenue in each applicable jurisdiction.

What Happens If You Don’t Pay Annual LLC Fees?

Failing to pay annual LLC fees or submit required reports can result in serious consequences, including:

  • Late fees and penalties: Many states impose late filing fees ranging from $25 to several hundred dollars.
  • Interest charges: Unpaid balances may accrue interest until the fees are paid in full.
  • Loss of good standing: Your LLC may lose its "active" status, limiting its ability to conduct business legally.
  • Administrative dissolution: If noncompliance continues, the state may dissolve your LLC, forcing you to reapply to operate legally.
  • Difficulty reopening accounts: A dissolved LLC may face challenges in reopening bank accounts, entering into contracts, or pursuing legal claims.

To avoid these risks, always track your filing deadlines and confirm your state’s fee requirements regularly.

Frequently Asked Questions

  1.  What are annual LLC fees?

    Annual LLC fees are state-imposed charges required to keep an LLC in good standing. These fees may be called annual reports, franchise taxes, periodic reports, or similar names depending on the state.

  2. Do all states require LLC annual fees?

    Most states require LLCs to pay annual or biennial fees. However, the type of fee, frequency, and amount vary by state. Some states, like Arizona, do not require annual reports for LLCs.

  3. What happens if I miss the deadline for paying annual LLC fees?

    Missing the deadline can result in penalties, late fees, loss of good standing, or even administrative dissolution of your LLC.

  4. Are annual LLC fees based on the company’s income?

    In some states, such as California and Texas, fees may be partially or fully based on the LLC's income or revenue. Other states charge a flat fee regardless of earnings.

  5. Do foreign LLCs need to pay annual fees in multiple states?

    Yes, if your LLC operates as a foreign LLC in states outside its formation state, you will likely owe annual fees and need to file reports in each of those states.

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