Formation is just the beginning. Here's what it actually costs to keep your LLC in good standing every year — state fees, registered agents, taxes, and more.
Most articles about LLC costs focus on formation — the one-time state filing fee and attorney fees to get your LLC up and running. That's the easy part to find. What's harder to find is a clear picture of the ongoing annual costs you'll face every year to keep your LLC in good standing.
Those costs matter. Miss an annual report deadline and your LLC can be administratively dissolved by the state — meaning you lose the liability protection you paid to create. This guide covers every recurring LLC expense so you can budget accurately and never get caught off guard.
Annual LLC costs fall into four main categories. The total for most small business owners ranges from $200 to $1,500 per year, with the biggest variable being your state's franchise tax or annual report fee.
Most states require LLCs to file an annual (or biennial) report with the state to remain in good standing. Some states call this a "franchise tax," others call it a "registered agent fee" or just an "annual report fee." Whatever the name, the requirement is the same: pay up or risk dissolution. Fees range from $0 (Ohio, Missouri) to $800 minimum (California, which charges all LLCs a minimum $800 franchise tax regardless of revenue).
Every LLC must maintain a registered agent — a person or company with a physical address in the state, available during business hours to accept legal documents. You can serve as your own registered agent for free (if you have a physical address in the state), but many business owners pay a registered agent service ($50–$300/year) for privacy, reliability, and to avoid missing important legal notices when they're traveling or unavailable.
Depending on your industry and location, you may need to renew local business licenses annually. Costs range from $25 for a basic city business license to $500+ for regulated industries (contractors, healthcare, real estate). These aren't LLC-specific costs — they apply to any business structure — but they're part of the annual compliance picture.
Tax preparation for an LLC adds cost beyond what you'd pay as a simple wage employee. A Schedule C filing (for single-member LLCs taxed as sole proprietors) typically costs $150–$400 at a CPA. A partnership return (Form 1065 for multi-member LLCs) costs $400–$1,000. If your LLC is taxed as an S-corporation, add $500–$1,500 for the additional complexity of Form 1120-S.
Here are the annual fees for the most common states where LLCs are formed. Note that these are the mandatory state fees — your total annual cost will be higher when you add registered agent services and tax prep.
| State | Annual Report Fee | Due Date / Frequency | Registered Agent (3rd Party) | Notes |
|---|---|---|---|---|
| California | $800 minimum | Annual (15th day of 4th month) | $50–$150/yr | Minimum franchise tax applies even with no revenue; additional $20 statement of information fee |
| Texas | $0 (no annual report fee) | Annual franchise tax report | $50–$150/yr | Franchise tax based on revenue; most small LLCs owe $0 under EZ computation threshold |
| Florida | $138.75 | Annual (May 1) | $50–$150/yr | Late fee adds $400; very important to file on time |
| New York | $9 biennial | Every 2 years | $50–$150/yr | Also requires publication in 2 local newspapers after formation (~$500–$2,000 one-time) |
| Delaware | $300 | Annual (June 1) | $50–$200/yr | Popular for larger businesses; tax benefits mainly for C-corps, not LLCs |
| Wyoming | $60 minimum or 0.0002% of assets in state | Annual | $50–$150/yr | Very LLC-friendly state; low cost, strong privacy protections |
| Nevada | $350 (state business license $200 + annual list $150) | Annual | $50–$150/yr | No state income tax; higher annual fees offset some savings |
| Colorado | $10 | Annual | $50–$150/yr | One of the lowest annual report fees in the country |
| Georgia | $50 | Annual (April 1) | $50–$150/yr | Flat fee; straightforward compliance |
| Illinois | $75 | Annual | $50–$150/yr | Plus potential Chicago city business license if operating there |
| Ohio | $0 | No annual report required | $50–$150/yr | No annual report fee; must still maintain registered agent |
| Pennsylvania | $70 | Annual (April 15) | $50–$150/yr | Decennial report also required every 10 years |
| Arizona | $0 | No annual report required | $50–$150/yr | No annual report; very low ongoing cost state |
| Washington | $60 | Annual | $50–$150/yr | B&O tax may apply depending on revenue |
| North Carolina | $202 | Annual (April 15) | $50–$150/yr | One of the higher annual report fees for a standard LLC state |
| Virginia | $50 | Annual | $50–$150/yr | Plus state business license tax in some localities |
| Michigan | $25 | Annual (February 15) | $50–$150/yr | Low flat fee; straightforward compliance requirements |
| Minnesota | $0 (no annual report) | No annual report required | $50–$150/yr | Annual renewal of registered agent required |
| Oregon | $100 | Annual | $50–$150/yr | CAT tax may apply for higher-revenue businesses |
| New Mexico | $0 | No annual report required | $50–$150/yr | Very LLC-friendly; no publication requirement, no annual report |
California's LLC costs deserve special attention because they catch so many business owners off guard. Every LLC doing business in California — or formed in California — must pay a minimum annual franchise tax of $800, regardless of whether the LLC made any money. A brand-new LLC formed in January pays $800 that year. An LLC with $0 in revenue still pays $800.
LLCs with higher revenue pay more: $900 on revenue of $250,000–$499,999, $2,500 on $500K–$999,999, and $6,000 on $1M–$4.99M. Additionally, California charges an annual $20 "Statement of Information" fee every two years for most LLCs.
The practical implication: forming an LLC in California is significantly more expensive to maintain than in most other states. If your business operates nationally, some owners form in Wyoming or Delaware and then register as a foreign LLC in California — but this still requires paying California's fees, and adds complexity. For most small businesses operating primarily in California, simply forming in California is the simplest approach despite the cost.
Beyond the mandatory state fees and registered agent, several other annual costs catch LLC owners by surprise:
Even the simplest LLC should maintain separate financial records. At minimum, expect to pay $500–$2,000/year for a bookkeeper to reconcile accounts quarterly and prepare year-end records for your tax preparer. DIY accounting with software like QuickBooks ($360–$660/year) or Wave (free) reduces this cost but requires your time.
Many business checking accounts charge monthly maintenance fees of $12–$30 unless you maintain a minimum balance. Some banks like Relay, Mercury, or Bluevine offer free business checking — worth considering for cost-conscious LLC owners.
General liability insurance for a typical LLC runs $500–$2,000/year for a small service business. Professional liability (errors and omissions) insurance adds $800–$3,000/year. These aren't legally required but are highly advisable — the liability protection of an LLC is not unlimited, and professional errors or accidents can pierce that protection without adequate insurance.
A professional business presence — domain name ($12–$20/year), website hosting ($100–$500/year), email ($6–$12/month), and basic business software — adds $500–$2,000/year for a typical small business.
A solo freelance designer's LLC in Texas: state franchise tax $0 (revenue under threshold), registered agent service $99/year, business checking $0 (Relay free), QuickBooks $360/year, CPA for Schedule C $350/year. Total: ~$809/year. The same business in California: minimum franchise tax $800, registered agent $99, statement of information $10 (biennial average), QuickBooks $360, CPA $350 (higher for CA forms). Total: ~$1,619/year — double the Texas cost before a dollar of revenue.
One of the most powerful — and least understood — LLC cost-saving moves is electing S-corporation tax treatment once your LLC profits exceed roughly $40,000–$60,000 per year. Here's why it matters:
By default, all LLC profits pass through to your personal return and are subject to self-employment tax (15.3% on the first $168,600 in 2026). An LLC taxed as an S-corp lets you pay yourself a "reasonable salary" (subject to payroll taxes) and take additional profits as distributions not subject to self-employment tax. On $100,000 in profit, the SE tax savings can be $8,000–$12,000 per year — easily justifying the additional compliance costs of S-corp taxation.
The tradeoffs: S-corp taxation requires payroll (typically $50–$100/month for a payroll service), quarterly estimated tax deposits, and Form 1120-S ($500–$1,500 additional CPA fee). The math typically favors S-corp election when net profits consistently exceed $60,000–$80,000.
Before the annual costs, there are one-time formation fees. Use our free LLC Formation Cost Calculator to see what it costs to start your LLC in any state.
LLC Formation Cost Calculator →Annual LLC maintenance costs typically range from $200 to $800 per year for most small business owners. This includes the state annual report or franchise tax fee ($50–$800 depending on state), a registered agent fee ($50–$300/year if using a service), and any state-specific LLC taxes. Federal taxes depend on how your LLC is taxed — as a sole proprietorship, partnership, or S-corp.
Most states require LLCs to file an annual report and pay a fee to maintain good standing. The fees range from $0 (Ohio, Missouri) to $800+ (California's minimum franchise tax). Some states charge a flat fee; others charge based on revenue or number of members. Failure to file and pay can result in your LLC being dissolved by the state.
A registered agent is a person or company designated to receive official legal and government documents on behalf of your LLC — including lawsuits, IRS notices, and state compliance mail. Every LLC is required by law to maintain a registered agent with a physical address in the state where the LLC is formed. You can serve as your own registered agent (free) or hire a registered agent service ($50–$300/year) for privacy and convenience.
By default, a single-member LLC is taxed as a sole proprietorship (profits reported on Schedule C of your personal return) and a multi-member LLC is taxed as a partnership. Either can elect to be taxed as an S-corporation, which can reduce self-employment taxes once profits exceed roughly $40,000–$60,000 per year. Some states also impose a state-level LLC tax or franchise fee regardless of federal election.
Rules, fees, deadlines, and available procedures vary by jurisdiction. Verify the current requirements with the responsible agency before acting.
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