LLC Annual Reports and Franchise Taxes Explained
After you form an LLC, most states want a periodic report and some charge a fee or franchise tax just for existing. The difference between states is large.
Three kinds of recurring cost
- Annual or biennial report fee. A small fee to keep your contact and agent information current (for example, North Carolina's is $200 and Louisiana's is $35 from Oct 1, 2026).
- Franchise or privilege tax. A tax on the right to do business. California's is $800 a year; Delaware's LLC tax is $400 a year; Texas has a franchise tax with a revenue threshold below which no tax is due.
- Business license renewals. Some states charge these separately from the report; Nevada, for example, adds a $200 state business license to its annual list fee.
What happens if you miss it
Late fees come first (Florida adds $400 after May 1 to its $138.75 report), then the state can administratively dissolve the LLC. Reinstatement usually costs more than filing on time.
Calendar tips
- Note whether your state's report is annual or every two years.
- Due dates can depend on your formation date or be fixed calendar dates.
- Update your registered agent promptly so reminders reach you.
See every state's recurring costs or the states with no annual fee.
Frequently asked questions
Which states have no annual LLC fee?
See our list of states with no recurring state fee. Some still require reports or taxes through another agency.
Do I owe franchise tax if my LLC has no income?
Some states charge a minimum tax regardless of income. California's $800 minimum is an example. Check your state.
Want someone else to handle the filing?
A formation service files the paperwork for a fee on top of the state fee and often includes a first year of registered agent service. It saves time, but you can file directly with the state for the state fee alone. Compare DIY and services.
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General information, not legal or tax advice. See our methodology and disclosure.