The process of forming a limited liability company is already an overwhelming task, but did you know that the annual LLC fees you must settle to remain in good standing vary in most states? From your yearly tax obligations to other filing fees, our business experts will narrow down all the details so that you can form your LLC at ease.
What are the LLC Fees In Every State?
Filing Fee
As you may already know, each state has its own one-time LLC filing fees. Depending on the processing or service fees demanded by the Secretary of State, the LLC costs for the registration of your business ranges from $50 to $500.
According to Venture Smarter, the cheapest state fees are in New Mexico, Arkansas, Iowa, Michigan, Indiana, Arizona, Colorado, and Hawaii ($50). The most expensive LLC filing fees are found in Tennessee, Alaska, New York, Massachusetts, Washington, and Florida ($250-$500).
Annual Fee
Upon your LLC formation, there are several state fees that your company must accomplish annually. To maintain liability protection privileges on your personal assets, our business consultants advise you to pay ongoing fees for every periodic report filing. While some states don’t have such requirements, others oblige companies to file a biennial report.
Besides these reporting fees, forming an LLC includes paying for annual franchise tax required by the Secretary of State and Franchise Tax Board, allowing companies to conduct business legally.
Registered Agent
Among all obligations as a new LLC owner, electing a reliable registered agent is the most crucial requirement out there. This role can be filled by an individual or business entity [1] that offers professional registered agent services.
Should you decide to sign for a registered agent service provider, you should anticipate additional yearly LLC cost on top of the state filing fee.
LLC Formation Costs
Business Name Reservation
Before proceeding to register your business with the Secretary of State, ensure that your LLC name isn’t similar to any business entities operating within the area. If you’re not yet ready to face the paperwork, we suggest paying the name reservation fee ahead of time to secure your chosen LLC trade label.
Publication Fees
Some state LLC regulations require new entities to publish their business formation announcement in a local newspaper. These publishing costs may vary depending on state policies and the publication assigned to publicize your incorporation.
Business License
Filing for different licenses and permits are essential LLC fees you must never ignore. This requirement is an ongoing fee that your LLC must accomplish every year as a major qualification to operate your business.
Besides your business license, you must also apply for a Federal Employer Identification Number or EIN for tax purposes, especially if you’re planning to open a company bank account.
Operating Agreement and Articles of Organization
Along with the filing fee we discussed at the beginning of this article, your LLC must submit articles of organization and an operating agreement to the Secretary of State. Expect additional expenses if you choose to register your company through LLC formation services.
Foreign LLC Registration
If you’re forming an LLC in some other states, chances are you’ll be registered as a foreign LLC. You’ll need to settle additional payments like franchise tax on top of the ones you’re paying in your current business residence.
List of State LLC Fees
State Agency | State Filing Fees | Ongoing Costs/ Annual Fees |
Alabama | $200 | $100 |
Alaska | $250 | $100 |
Arizona | $50 | $0 |
Arkansas | $45 | $150 |
California | $70 | $800 |
Colorado | $50 | $10 |
Connecticut | $120 | $80 |
Delaware | $90 | $300 |
Florida | $125 | $138.75 |
Georgia | $100 | $50 |
Hawaii | $50 | $15 |
Idaho | $100 | $0 with annual report |
Illinois | $150 | $75 |
Indiana | $95 | $35 |
Iowa | $50 | $45 |
Kansas | $160 | $50 |
Kentucky | $40 | $15 |
Louisiana | $100 | $35 |
Maine | $175 | $85 |
Maryland | $100 | $300 |
Massachusetts | $500 | $500 |
Michigan | $50 | $25 |
Minnesota | $155 | $0 with annual report |
Mississippi | $50 | $0 with annual report |
Missouri | $50 | $0 with annual report |
Montana | $70 | $20 |
Nebraska | $105 | $10/biennial report |
Nevada | $425 | $350 |
New Hampshire | $100 | $100 |
New Jersey | $125 | $75 |
New Mexico | $50 | $0 with annual report |
New York | $200 | $9 |
North Carolina | $125 | $200 |
North Dakota | $135 | $50 |
Ohio | $99 | $0 with annual report |
Oklahoma | $100 | $25 |
Oregon | $100 | $100 |
Pennsylvania | $125 | $70/decennial report |
Rhode Island | $150 | $50 |
South Carolina | $110 | $0 with annual report |
South Dakota | $150 | $50 |
Tennessee | $300 | $300 |
Texas | $300 | $0 with annual report |
Utah | $70 | $20 |
Vermont | $125 | $35 |
Virginia | $100 | $50 |
Washington | $200 | $60 |
Washington DC | $220 | $300 |
West Virginia | $100 | $25 |
Wisconsin | $130 | $25 |
Wyoming | $100 | $50 |
FAQ
Does LLC have annual fees?
Yes, LLCs have annual fees such as taxes, license and permit renewals, registered agent expenses, and many more. Most of these payment obligations must be paid continually every year to maintain the good record of your company and avoid paying penalties in the long run when faced with non-compliance.
What is the cheapest way to get an LLC?
The cheapest way to get an LLC is personally filing formation documents in your home state. However, process and payments may vary depending on your chosen residence that could eventually lead to delays and additional fees. Seeking legal advice and assistance from incorporation services is a great alternative.
Is LLC annual fee tax-deductible?
Yes, LLC annual fee is tax-deductible in most states. These payment deductions are taken from fees that have something to do with acquiring new business licenses and permits. However, you must consider certain limits, rules, and exemptions to execute these deductions legally and adequately.
What is the cheapest state to form an LLC?
The cheapest states to form an LLC are Mississippi, Colorado, Hawaii, Iowa, Oklahoma, and Arkansas. Among all states, these places offer the lowest filing fees amounting to $50. In terms of annual costs, states like South Mexico, Texas, Ohio, and South Carolina don’t require any ongoing expenses.
Conclusion
While it’s convenient to compare all LLC fees by state expenditures before deciding where to incorporate your company, our experts want to remind you that filing requirements and additional costs aren’t the only factors to consider. Besides fulfilling obligations, seeking firms or a business lawyer that offer legal or tax advice is a step helpful for future disputes.
