Filing Fee vs. Annual Fee — Know the Difference
These two costs are the most commonly confused parts of LLC formation. One is a one-time startup cost. The other is what you pay every year for the rest of your LLC's life.
- Filing fee (one-time) — paid when you file your Articles of Organization to create your LLC. Ranges from $35 (Montana) to $500 (Massachusetts). You pay it once.
- Annual fee (recurring) — paid every year (or every two years in some states) to keep your LLC active and in good standing with the state. Ranges from $0 to $800+. This is what this guide covers.
Missing your annual fee can dissolve your LLC. In approximately 90% of states, failure to file the annual report and pay the fee results in administrative dissolution — your LLC loses its legal existence and your personal liability protection disappears. Late fees range from $25 to $400. Always file on time.
Master Table — LLC Annual Fees, All 51 States (2026)
Click any column header to sort. Search or filter by fee level or frequency. Click a state name for its full LLC guide.
| # | State | Annual Fee | Frequency | Deadline | Late Penalty |
|---|
Sources: official Secretary of State and state agency websites, verified June 2026. *Alabama eliminated its SOS annual report Oct 2024; Business Privilege Tax exempt if calculated tax ≤$100 — most LLCs pay $0. **California $800/yr is the minimum franchise tax separate from the $20 biennial Statement of Information. ***Texas franchise tax applies only above $2.65M gross revenue (2026 threshold). †Pennsylvania switched from $70 decennial to $7 annual report in 2025. Always verify current requirements at your state's official website before filing.
Annual Ongoing Cost Calculator
Select your state and recurring services to see your estimated yearly LLC maintenance cost.
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Estimated Annual LLC Cost$—
Estimates only. Registered agent costs vary by provider. Business license, bookkeeping, tax prep, and insurance costs vary widely by location and business type. Annual fees for biennial states are shown as their per-year equivalent.
Lowest Annual Fee States
These states have the lowest ongoing maintenance cost for your LLC once it's formed.
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Annual $0No report required
No annual report. Same-day automated online approval. $50 filing fee.
3
Annual $0No report required
No annual report, no annual fee. One of the most low-maintenance LLC states.
4
5
Annual $10Due anniversary month
$10/yr periodic report. $50 filing fee. Automated same-day online approval.
6
Annual $15Due June 30
$15/yr annual report. $40 filing fee — one of the cheapest and fastest states.
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$9 biennial (~$4.50/yr)Biennial statement
Cheapest recurring fee in the country at $9 every 2 years — but $200 filing fee and mandatory newspaper publication add thousands upfront.
Ahmad Adil's Warning: The "lowest annual fee" is only meaningful if you actually live and operate in that state. Forming in Missouri or Arizona while working in Texas means you're a foreign LLC in Texas — paying Texas fees on top. Never form out of state just to save on annual fees unless you genuinely have flexibility on where to form.
Highest Annual Fee States
1
$800/yr minimum+ $20 biennial SOI
The $800 minimum franchise tax hits every year even at $0 revenue. LLCs with over $250K in gross receipts owe more. The $70 filing fee hides this enormous ongoing cost.
2
$500/yrFiling $500
Most expensive in every category. $500 to form, $500 every year. Year 1 total: $1,000 in state fees alone.
3
$350/yrIncludes State Business License
$200 annual list of managers + $150 state business license renewal. Often marketed as "tax-friendly" but among the most expensive to maintain.
4
$300/yrFiling $300
$300 to form and $300 every year. No income tax, but high fees on both ends.
5
$300/yrFranchise tax
$300 annual franchise tax on every LLC. No annual report. Often chosen for legal advantages — but maintenance cost is high for small businesses with no real Delaware presence.
States With No Annual Report or $0 Fee
These are the most low-maintenance states once your LLC is formed.
$0 (most LLCs)
Filing: $200 · Annual: $0*
SOS report eliminated Oct 2024. BPT exempt ≤$100 calculated tax.
Texas also has a $0 annual fee for most LLCs. Texas requires an annual franchise tax report, but the no-tax-due threshold is $2.65M in gross revenue (2026). If your LLC earns under that, you file a simple no-tax-due report with a $0 fee. For most small Texas LLCs, annual state maintenance cost is effectively $0 — despite a $300 filing fee to form.
Understanding Deadline Types
Annual report deadlines fall into two main structures. Knowing which applies to your state prevents you from missing your filing.
| Deadline Type | How It Works | Example States | Easier to Track? |
|---|---|---|---|
| Fixed Calendar Date | Same date for all LLCs in the state, every year, regardless of when your LLC was formed | Florida (May 1), Kentucky (June 30), Montana (April 15), Georgia (April 1) | Yes — easy to put in your calendar once |
| Anniversary-Based | Due each year in the same month your LLC was originally approved — tied to your formation date | California (within 90 days of formation, then anniversary month biennial), Texas (May 15 each year), many others | Moderate — varies by LLC |
| Biennial (Every 2 Years) | Required every two years instead of annually — often alternating odd/even years or based on formation year | New York, Alaska (biennial), Iowa, Indiana, Nebraska | Easy once you track your cycle year |
Special Cases Worth Knowing
Expand each to see the details for states with unusual annual fee structures.
California — $800/yr Minimum Franchise Tax
The most misunderstood LLC cost in the US
California's $70 filing fee is deceptively cheap. The real ongoing cost is the $800 minimum franchise tax — due every year by April 15 for calendar-year LLCs, even if your LLC made $0. In addition, California requires a Statement of Information ($20) within 90 days of formation, then every two years in your anniversary month. LLCs with over $250,000 in gross receipts owe an additional LLC fee (tiered up to $11,790/yr). California does not exempt first-year LLCs from the $800 tax. Before forming a California LLC, budget at least $820/yr in state fees minimum.
New York — $9 Biennial + Newspaper Publication
Cheapest recurring fee, most expensive initial cost
New York's biennial statement fee is only $9 every two years — technically the cheapest recurring fee in the US. But New York requires all new LLCs to publish a notice of formation in two newspapers for six consecutive weeks within 120 days of approval. In Manhattan and surrounding counties, publication costs run $300–$1,500+. Skipping publication suspends your LLC's ability to do business. Factor in the $200 filing fee and publication costs — New York is one of the most expensive states for first-year LLC formation despite a trivial recurring fee.
Delaware — $300 Franchise Tax (No Annual Report)
Popular for corporations, expensive for small LLCs
Delaware doesn't require an annual report for LLCs — but it does require payment of a $300 annual franchise tax due June 1. Delaware LLCs operating outside Delaware also need to register as a foreign LLC in their home state and pay that state's fees too. Delaware's legal advantages (Court of Chancery, strong LLC statutes, flexible operating agreement) are real but matter most for venture-backed companies and holding structures. For the average small business owner, Delaware's ongoing costs usually outweigh its benefits.
Texas — $0 for Most LLCs (Under $2.65M Revenue)
No-tax-due threshold makes Texas low-maintenance for most small businesses
Texas requires LLCs to file a Franchise Tax Report annually by May 15. However, the no-tax-due threshold for 2026 is $2,650,000 in total gross revenue. LLCs under this threshold file a simplified No Tax Due Report with a $0 fee — and can use the EZ Computation method. Only LLCs exceeding $2.65M in revenue pay the franchise tax (0.375% for retail/wholesale, 0.75% for others). For most small Texas LLCs, the annual state maintenance cost is effectively $0 despite a $300 initial filing fee.
Pennsylvania — Switched to $7/yr Annual Report (2025)
Major change: old $70 decennial report replaced with $7 annual report
Pennsylvania made a significant compliance change effective 2025: the old $70 decennial report (filed every 10 years) was replaced with a $7 annual report filed every year. This is one of the lowest annual fees in the country. The annual report is due June 30 each year. If your LLC was formed under the old decennial system, you now need to switch to annual filing — don't skip it assuming you're still on a 10-year cycle.
Alabama — SOS Report Eliminated Oct 2024
Most Alabama LLCs now pay $0 in annual state fees
Alabama eliminated its Secretary of State annual report requirement in October 2024. However, the Alabama Business Privilege Tax (BPT) still technically exists — but LLCs are exempt from paying it if the calculated tax is $100 or less. For most small Alabama LLCs, the effective annual state fee is now $0. If your calculated BPT exceeds $100 (generally requires significant business property or net worth in Alabama), you still owe that amount. Confirm your specific obligation with an Alabama CPA or the Alabama Department of Revenue.
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Frequently Asked Questions
LLC Annual Fees — FAQ
What is the average LLC annual fee in the US?
The national average LLC annual fee is approximately $91 per year as of 2026. This ranges from $0 in states with no annual report requirement (Arizona, Missouri, New Mexico, Ohio) to $800+ per year in California. Most states charge between $50 and $150 per year. For biennial states, the per-year equivalent is typically much lower — New York's $9 biennial statement works out to $4.50 per year.
Which states have no LLC annual fee?
Four states require no annual report and charge no annual fee for LLCs: Arizona, Missouri, New Mexico, and Ohio. Additionally, several states require an annual report but charge $0 for it: Idaho, Minnesota, Mississippi, South Carolina, and Texas (for LLCs under the $2.65M revenue threshold). Alabama eliminated its SOS annual report in October 2024, and most Alabama LLCs are now effectively exempt from its Business Privilege Tax as well.
Do I have to pay the annual fee if my LLC made no money?
In most states, yes. Annual report fees apply to all active LLCs regardless of revenue, activity, or profit. California's $800 minimum franchise tax applies even if your LLC made zero dollars. Florida's $138.75 annual report fee applies to every LLC regardless of income. The only exception is states like Texas, where the annual fee is waived for LLCs under the $2.65M revenue threshold. If you're not actively using your LLC, the cheapest option is to formally dissolve it through the state rather than continuing to pay annual fees indefinitely.
What happens if I miss my LLC annual report deadline?
Missing your annual report deadline typically results in an immediate late fee ($25–$400 depending on state), loss of good standing, and eventually administrative dissolution of your LLC if you continue to miss filings. Once dissolved, your liability protection disappears and you may lose the right to use your LLC's name. Florida adds $400 the day after May 1 — the highest late penalty in the country. Reinstatement after dissolution requires paying all overdue fees plus a reinstatement penalty ($50–$200+ depending on state). File on time, every time.
Are LLC annual fees tax deductible?
Generally yes. State annual report fees, franchise taxes paid to maintain your LLC, and registered agent fees are typically deductible as ordinary and necessary business expenses on Schedule C (single-member LLC) or Form 1065 (multi-member LLC). California's $800 franchise tax is deductible on your federal return. Florida's $138.75 annual report fee is also deductible. Keep your payment receipts and include these costs in your business bookkeeping. Confirm deductibility with your CPA for your specific situation.
Is the LLC annual fee the same as the filing fee?
No — these are two completely different costs. The filing fee is a one-time cost paid when you form your LLC (ranges from $35–$500). The annual fee is a recurring cost paid every year (or biennial) to keep your LLC active. For example, Florida's filing fee is $125 (paid once) and its annual report fee is $138.75 (paid every year by May 1). See our LLC Filing Fees by State guide for the full one-time fee comparison.
Should I form in a low-annual-fee state to save money?
For most people, no. If you form an LLC in Arizona ($0 annual fee) but you live and work in Texas, you are legally required to register as a foreign LLC in Texas — which means paying Texas's fees too. You'd be paying annual fees in both states rather than none. The annual fee savings only matter if you genuinely have flexibility on where to form (non-residents with no fixed home state, holding companies, etc.). For most US-based entrepreneurs, form in the state where you live and operate. The cheapest option is your home state.
About the Author
Ahmad Adil
Ahmad Adil is the founder and CEO of LLC School. Every fee and deadline in this guide was personally verified against official Secretary of State and state agency websites for June 2026. The Alabama, Pennsylvania, and Texas notes reflect recent changes verified against official state sources. LLC School updates all fee guides whenever states change their requirements.
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