Many people confuse LLC annual fee with the LLC filing fee. Do you also think these are the same? Well, read this article till the end to know the difference and their cost by each state.

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 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, and annual fees vary from state to state. 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 top-rated LLC formation services 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 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. 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 operating your 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?

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 LLC’s good standing. 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.

Alabama
$100 minimum
annual franchise tax
Indiana
$30 biennial report
Nebraska
$10 biennial report
South Carolina
$0 (no fee)
Alaska
$100 biennial report
Iowa
$60 biennial report
Nevada
$150 annual report,
plus $200 business
license fee
South Dakota
$50 annual report
Arizona
$0 (no fee)
Kansas
$55 annual report
New Hampshire
$100 annual report
Tennessee
$300 minimum annual
report (plus $50 per
member, if >six
members),plus $100
minimum franchise tax
Arkansas
$150 annual report
Kentucky
$15 annual report,
plus $175 minimum
annual limited liability
entity tax
New Jersey
$50 annual report
Texas
Annual franchise tax
(varies depending
on net surplus)
California
$20 biennial report,
plus $800 minimum
annual franchise tax
Louisiana
$30 annual report
New Mexico
$0 (no fee)
Utah
$20 annual report
Colorado
$10 annual report
Maine
$85 annual report
New York
$9 biennial report,
plus $25 minimum
annual LLC filing fee
Vermont
$35 annual report
Connecticut
$20 annual report,
plus $250 biennial
business entity tax
Maryland
$300 annual report
North Carolina
$200 annual report
Virginia
$50 annual report
Delaware
$300 annual tax
Massachusetts
$500 annual report
North Dakota
$50 annual report
Washington
$60 annual report
Florida
$138.75 annual
report
Michigan
$25 annual report
Ohio
$0 (no fee)
Washington D.C.
$300 biennial report
Georgia
$50 annual report
Minnesota
$0 (no fee)
Oklahoma
$25 annual report
West Virginia
$25 annual report
Hawaii
$15 annual report
Mississippi
$0 (no fee)
Oregon
$100 annual report
Wisconsin
$25 annual report
Idaho
$0 (no fee)
Missouri
$0 (no fee)
Pennsylvania
$70 decennial report
Wyoming
$25 minimum annual
report
Illinois
$75 annual report
Montana
$20 annual report
Rhode Island
$50 annual report

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