Which US state has the lowest LLC annual fees?

Several states have $0 recurring annual report fees for LLCs, including Arizona, Missouri, New Mexico, Ohio, and South Carolina. In these states, maintaining an LLC costs nothing annually unless you hire a commercial registered agent.

Why is California LLC maintenance so expensive?

California imposes an annual $800 minimum Franchise Tax on all LLCs registered or doing business in the state, regardless of whether the business turns a profit or earns $0. Additionally, a $20 Statement of Information is due every two years.

Can I form my LLC in Wyoming or Delaware to avoid my home state fees?

Generally, no. If you operate your business in your home state (e.g., from a home office or physical storefront), your home state will require you to register as a Foreign LLC. This means you will end up paying fees in both Delaware/Wyoming AND your home state, doubling your compliance overhead.

50-State LLC Annual Fee & Franchise Tax Calculator (2026)

Jurisdiction & Setup

Select US State / Formation Jurisdiction

Registered Agent Service

State Formation Filing (One-Time) $0

Statutory Compliance Schedule

Filing Frequency: Annual

Statutory Due Date: April 15th

Late Penalty Exposure: $50 or Dissolution

State regulatory note goes here.

Annual Recurring Cost

State + Agent

State Mandatory Cut

Report + Franchise Tax

5-Year Cumulative

Initial + 5 Yrs Maint.

Cumulative Cost Horizon (Year 1 to Year 5)

Wyoming

Itemized Compliance Ledger

State Initial Filing (Articles of Organization) $0

State Annual Report Fee $0

State Franchise Tax / Privilege Tax $0

Registered Agent Annual Maintenance $0

Total Year 1 Out-of-Pocket Expense $0

Understanding Recurring LLC Costs Across US States

When launching a business in the United States, founders often focus solely on initial formation fees, neglecting mandatory ongoing maintenance costs. Depending on where your company is registered, compliance fees vary drastically:

Zero Annual Report States States like Ohio, Arizona, New Mexico, and Missouri charge $0 in recurring annual report fees, making ongoing administrative maintenance essentially free.

High-Franchise States (CA & DE) California requires a mandatory $800 annual franchise tax even with zero revenue. Delaware charges a flat $300 annual franchise tax for all LLCs.

The "Wyoming Myth" Trap Forming an out-of-state LLC in Wyoming or Delaware while living and operating in Florida or Texas will require registering as a Foreign LLC in your home state, doubling your annual compliance costs.

Beneficial Ownership (BOI) Note All reporting companies must file federal Corporate Transparency Act (BOI) disclosures with FinCEN; this is a free federal filing that does not involve state fees.

Frequently Asked Questions

What happens if I miss the annual report filing deadline?

Missing your state's annual report deadline results in late penalty fees (ranging from $25 in Texas to $400 in Florida). If left unaddressed for several months, the Secretary of State will administratively dissolve or revoke your LLC, forfeiting your limited liability protection and making your business name available to competitors.

Do I really need a paid commercial Registered Agent?

Not necessarily. If you reside in the state where your LLC is formed, have a physical street address (not a P.O. Box), and are available during standard business hours, you can legally serve as your own registered agent for $0. However, hiring a commercial agent ($100–$150/year) keeps your personal home address off public state records.

Is the California $800 Franchise Tax really due every year?

Yes. California Revenue and Taxation Code section 17941 mandates that every LLC registered in California must pay an $800 annual franchise tax to the California Franchise Tax Board (FTB), regardless of whether you made a profit, lost money, or were completely inactive.