Forming an LLC in the United States is a popular option for both U.S. citizens and non-residents, but many entrepreneurs forget to factor in one key cost—LLC annual fees. These are recurring fees that vary significantly from one state to another, and understanding them can help you avoid surprises and pick the right state to form your LLC. In this guide, we’ll break down what LLC annual fees are, how they work, and which states are the cheapest (and most expensive) in 2025.
What Are LLC Annual Fees?
LLC annual fees are payments required by each U.S. state to keep your limited liability company in good standing. These fees may be called by different names depending on the state: annual report fees, franchise taxes, renewal fees, or simply “annual maintenance fees.” These charges are due once a year, regardless of how much money your LLC makes or if it’s active.
Why LLC Annual Fees Matter
If you’re starting a business with a tight budget—or running a business from outside the U.S.—picking a state with lower annual fees can help you reduce long-term costs. On the other hand, choosing a state with higher fees (like California) might make sense if you’ll have a physical presence there or you expect significant local business.
LLC Annual Fees by State: 2025 Comparison Table
Here’s a snapshot of the current (2025) annual LLC fees across all 50 states. These numbers reflect the latest official data, but we recommend checking with each state’s Secretary of State website for real-time accuracy.
| State | Annual Fee | Notes |
|---|---|---|
| California | $800 | Franchise tax due yearly |
| Delaware | $300 | Flat annual franchise tax |
| Florida | $138.75 | Annual report filing |
| Texas | $0 (if under threshold) | Franchise tax applies if revenue > $2.47M |
| Wyoming | $60+ | $60 minimum, based on assets in-state |
| Nevada | $350 | Includes business license + list fee |
| New York | $9–$4,500 | Based on income |
| New Mexico | $0 | No annual fees |
| Arizona | $0 | No annual report or renewal fee |
| Washington | $71 | $60 renewal + $11 processing |
| Illinois | $75 | Annual report required |
| Georgia | $50 | Online filing |
To explore full updated fees, visit the official Secretary of State websites for each state:
- California Franchise Tax Board
- Delaware Division of Corporations
- Florida Sunbiz
- Wyoming Secretary of State
Top 5 States with the Lowest LLC Annual Fees in 2025
- New Mexico – $0 annual fees or reporting
- Arizona – $0 annual report
- Missouri – $0 annual reporting requirements
- Ohio – $0 yearly fee
- Wyoming – $60 flat fee
Top 5 States with the Highest LLC Annual Fees
- California – $800 flat franchise tax
- Nevada – $350 minimum (includes licensing)
- Illinois – $75 + potential penalties for late filings
- Massachusetts – $500 flat fee
- Tennessee – $300 minimum based on member count
Which State Is Best Based on Fees?
If you’re a non-resident or digital entrepreneur with no physical presence in the U.S., consider forming your LLC in Wyoming, New Mexico, or Florida. These states offer low annual fees, strong privacy protections, and simple online management. However, if your business will operate in a specific state, you’ll need to register there regardless of its fees.
Do Annual Fees Include State Taxes?
No—LLC annual fees are separate from state income taxes or sales taxes. Even if your state charges $0 for LLC maintenance, you may still owe state taxes if your LLC earns income in that state. For example, Texas doesn’t charge annual fees for small LLCs, but once you cross $2.47 million in revenue, you’ll owe franchise taxes.
Important Reminders
- Don’t miss your due dates. Most states impose late fees or even administrative dissolution if you forget to pay.
- Set calendar reminders and use a registered agent to keep everything in compliance.
- Keep good records of payments and filings.
Final Thoughts
LLC annual fees are an ongoing cost that every entrepreneur should budget for. Choosing the right state can help you reduce your yearly business expenses significantly. Don’t just focus on the initial formation cost—consider the total cost of ownership over 5–10 years. Need help choosing the best state or estimating your total LLC costs? I’d be happy to help build a personalized comparison or cost calculator based on your business goals and location.
📩 Just let me know what your business does, your budget, and whether you live inside or outside the U.S.—I’ll walk you through the best options for forming and maintaining your LLC.