Tax & Compliance

Franchise Tax by State: What Every State Charges an LLC to Exist

Franchise tax is the fee some states charge entities for the privilege of existing, separate from income tax and often owed even in loss years. Here is the state-by-state table of annual entity costs, the five states whose systems need explanation, and the deadlines that dissolve companies when missed.
Calculator, financial documents, and a pen on a desk, illustrating Delaware franchise tax calculation.
State government buildings representing annual franchise tax obligations across the United States.
Executive summary
Franchise tax at a glance
What it isA recurring state charge for existing as an entity, separate from income tax
Range$0 (several states) to $800+ minimums (California), plus calculated systems
Owed whenEvery year the entity exists, in most systems regardless of profit
Missed deadlinePenalties → lost standing → suspension or administrative dissolution
Last updatedAugust 13, 2026

Founders budget the formation fee and forget the meter that starts running afterward. Nearly every state charges something annually to keep an entity registered: an annual report fee, a franchise tax, or both under one label. The amounts range from zero to four figures, the calculation methods vary wildly, and the deadlines are enforced with the same escalation everywhere: penalties, lost standing, then administrative dissolution. This page is the map: what every state charges an LLC each year, and the five systems complicated enough to need their own paragraphs. The concept itself is covered in what franchise tax is; how it fits your federal picture is in the LLC taxes guide.

Annual LLC Costs in All 50 States

Every figure in this table is generated from the File.Business state fee record at api/state-fees.json, read on 2026-08-13, rather than typed in. Thirteen states charge LLCs and corporations differently, so both columns are shown; where the two differ, the note explains why. Amounts are the recurring state charge for keeping the entity registered, which some states call an annual report fee, some call a franchise tax, and some split across both. State names link to the full cost breakdown for that state.

StateLLCCorporationCycle and what the number covers
Alabama$50$50Annual
Alaska$100$100Biennial Biennial. Domestic $100, FOREIGN $200. The $50 often quoted is the Alaska business licence, a separate annual charge.
Arizona$0$0Annual
Arkansas$150$150Annual
California$820$825Biennial (llc) / annual (corp) $800 franchise tax plus the Statement of Information ($20 LLC biennial, $25 corporation annual). The tax and the fee are separate obligations to separate agencies.
Colorado$25$25Annual
Connecticut$80$435Annual LLC annual report $80. Corporation annual report $435 including the franchise component.
Delaware$400$50Annual LLCs pay a $400 annual tax by June 1 and file NO annual report. Corporations file a $50 annual report by March 1 plus franchise tax from $175 (authorized shares) or $400 (assumed par value), capped at $200,000.
District of Columbia$300$300Biennial
Florida$139$139Annual
Georgia$50$50Annual
Hawaii$15$15Annual
Idaho$0$0Annual
Illinois$75$75Annual
Indiana$32$32Biennial
Iowa$45$45Biennial
Kansas$80$80Biennial K.S.A. 17-76,139 and 17-7503: $80. Biennial, due not later than April 15, forfeiture 90 days later.
Kentucky$15$15Annual
Louisiana$30$30Annual
Maine$85$85Annual
Maryland$300$300Annual
Massachusetts$520$125Annual LLC annual report $500 ($520 online). Corporation annual report $125 ($109 online).
Michigan$25$25Annual
Minnesota$0$0Annual Annual renewal is free for an active entity, but it is mandatory and due December 31. Reinstatement after administrative dissolution is $65 by mail or $85 online.
Mississippi$0$25Annual LLC annual report is free. Corporation annual report $25.
Missouri$0$0Annual
Montana$20$20Annual
Nebraska$10$10Biennial
Nevada$350$650Annual Annual List plus State Business Licence. Corporation $650 ($150 list + $500 licence). LLC $350 ($150 list + $200 licence). Figure shown is the corporation rate per the highest-figure rule.
New Hampshire$100$100Annual
New Jersey$75$75Annual
New Mexico$0$0Biennial
New York$9$9Biennial
North Carolina$200$200Annual
North Dakota$50$50Annual
Ohio$0$05-year (corp only)
Oklahoma$25$25Annual
Oregon$100$100Annual Domestic rate. FOREIGN renewal is $275.
Pennsylvania$7$7Annual
Rhode Island$50$50Annual
South Carolina$0$0Corp annual only
South Dakota$50$50Annual
Tennessee$300$20Annual LLC annual report is $50 per member, minimum $300, maximum $3,000. Corporation annual report $20.
Texas$0$0Annual
Utah$20$20Annual
Vermont$35$45Annual Domestic rates. FOREIGN entities pay more: foreign LLC $140, foreign corporation $200.
Virginia$50$50Annual
Washington$60$60Annual
West Virginia$25$25Annual
Wisconsin$25$40Annual Domestic rates. FOREIGN entities pay $65.
Wyoming$60$60Annual

Read the note column before quoting a number. Nevada is $650 for a corporation and $350 for an LLC because the state business licence differs by form. Kansas is $80 and biennial, not annual. Minnesota is $0 and still mandatory, with the renewal due December 31. Alaska is $100 biennial for a domestic entity and $200 for a foreign one, and the $50 figure quoted all over the internet is the separate Alaska business licence. Alaska also has no Secretary of State: filings go to the Division of Corporations, Business and Professional Licensing. Verify against your state's agency at filing time, and see the interactive comparison for formation fees alongside.

The Five Systems Worth Understanding

California: the $800 minimum plus a fee schedule. Every LLC owes $800 from its first tax year, dissolution being the only exit, and gross receipts above $250,000 stack an additional fee from $900 to $11,790. Biennial $20 Statement of Information rides alongside. Full treatment: the California guide.

Delaware: flat $400, no report. LLCs pay a flat annual tax by June 1 with no annual report at all; corporations instead file the March 1 franchise report with a calculated tax. Simple, predictable, and the largest single reason a dormant Delaware LLC costs $400 a year to forget about.

Texas: a tax report most owe nothing on. No annual report fee, but every entity files a franchise tax report by May 15. Below the no-tax-due threshold, which is $2,650,000 of annualized total revenue for the 2026 report year, the tax is zero and the only filing is an information report; above it, 0.375% to 0.75% of taxable margin. Skipping the $0 filing still forfeits the entity. Details: the Texas guide.

New York: a fee scaled to income, plus publication. LLCs pay an annual filing fee from $25 to $4,500 based on New York-source gross income, the $9 biennial statement, and, once, the notorious newspaper publication requirement after formation.

Tennessee and the net-worth states. Tennessee levies both a franchise tax (0.25% of net worth, $100 minimum) and an excise tax (6.5% of net earnings) on LLCs, one of several states where "franchise tax" is a genuine calculated tax rather than a flat fee. Similar calculated systems appear in Arkansas, Mississippi, and others; profitable multi-state operations should map them with a CPA.

The pattern to notice: these obligations attach per state, so an LLC registered in three states carries three sets of them. That multiplication is the recurring theme of the formation-state decision, and the reason compliance monitoring tracks obligations per entity, per jurisdiction.
While you are here

Compliance monitoring

If you would rather not do this yourself, we track every deadline for your entity and file on time, in every state where you are registered. Or keep reading and file it on your own. This guide covers everything you need either way.

The Penalty Ladder and What Each Rung Costs

Every state escalates in the same order, but the money at each rung is wildly different, and that is the part owners get wrong. Four real ladders, in ascending order of pain.

StateFirst consequenceThenCash cost of a first miss
Delaware$200 penalty plus 1.5% a monthCharter void after one year of non-payment$600 on a $400 LLC tax, before interest
Florida$400 late fee after May 1Administrative dissolution the fourth Friday of September$539 on a $139 report
California5% plus 0.5% a month, capped at 25%Suspension of the right to do business$892 on an $800 tax six months late
Texas$50 for the late reportForfeiture of the right to transact business$50, and the loss of court access

Notice that Texas has the smallest number and one of the worst outcomes. A forfeited Texas entity cannot sue or defend in Texas courts, and the officers can carry personal liability for debts incurred while forfeited. Florida has the largest flat late fee in the country at $400, which is nearly three times the report fee itself. Delaware is the only one of the four where the charge keeps growing every month indefinitely. The full mechanics of each are in the Delaware guide, the California guide, the Texas guide and the New York guide.

The rung nobody budgets for is the last one. Reinstatement is always possible and always costs more than compliance: every missed year of fees, every penalty, interest, and a reinstatement application on top. A three-year lapse in a $300 state is a four-figure recovery. The route back is in the reinstatement guide and how to reinstate an administratively dissolved LLC.

Five Mistakes That Turn a Small Fee Into a Large One

Each of these comes from reading one number where the state actually publishes two. All five are visible in the table above if you read the note column.

Mistake 01

Quoting the headline fee for the wrong entity type

Why it happensThirteen states charge LLCs and corporations different amounts, and comparison sites publish one number.

ConsequenceNevada is $650 for a corporation and $350 for an LLC. Tennessee is $300 minimum for an LLC and $20 for a corporation. Connecticut is $80 and $435. Budget from the wrong column and you are out by hundreds.

PreventionRead the LLC and Corporation columns separately, and check the note. Converting entity type changes the bill in both directions.

Mistake 02

Reading $0 as nothing to file

Why it happensNine states charge nothing, which reads like an exemption rather than a free filing.

ConsequenceMinnesota charges $0 and still administratively dissolves entities that skip the December 31 renewal; reinstatement is $65 by mail or $85 online. Texas charges $0 and forfeits the right to transact business.

PreventionTreat $0 states as filings with a fee of zero, not as states with no filing. The deadline is the obligation.

Mistake 03

Using the domestic rate for a foreign-qualified entity

Why it happensState fee schedules lead with the domestic number and bury the foreign one.

ConsequenceAlaska is $100 domestic and $200 foreign. Oregon is $100 domestic and $275 foreign. Vermont is $35 for a domestic LLC and $140 for a foreign one. Wisconsin is $25 domestic and $65 foreign.

PreventionIf the entity was formed elsewhere and registered in, use the foreign rate. See foreign qualification.

Mistake 04

Setting an annual reminder in a biennial state

Why it happensNine jurisdictions run on a two-year cycle and an annual calendar entry quietly skips one.

ConsequenceAlaska, Indiana, Iowa, Kansas, Nebraska, New Mexico, New York and the District of Columbia are biennial, and California is biennial for the LLC statement while the $800 tax stays annual. A missed cycle is invisible until a certificate is refused.

PreventionSet the reminder two years out the day you file, and check deadlines by state for the cycle.

Mistake 05

Assuming only the formation state bills you

Why it happensFormation feels like the decision, so owners budget one state's fee and stop.

ConsequenceRegistering as a foreign entity generally brings that state's report and franchise obligations with it. Three states of operation is three sets of fees, three deadlines and three agencies.

PreventionCount the states you are registered in, not the state you formed in. The trade-off is worked through in best state to form an LLC.

Three Entities, Three Annual Bills

The table gives a number per state. What an owner actually pays depends on entity type, member count and how many states the business touches.

Example 1 - the conversion that doubled the state bill

Windrow Grain Handling LLC, Elko, Nevada

Windrow Grain Handling LLC ran for four years in Nevada paying $350 a year, which is a $150 Annual List plus a $200 State Business Licence. Taking on outside investment meant converting to a corporation. The Annual List stayed at $150 but the corporate business licence is $500, so the recurring state charge became $650. Nobody modelled it, because every comparison page publishes Nevada as one number.

As an LLC$350 a year
As a corporation$650 a year
DriverState Business Licence, $200 versus $500
ChangePlus $300 a year

Outcome: Entity conversion changes recurring state cost in thirteen states. Check both columns before the conversion, not after the first invoice.

Example 2 - the per-member fee nobody expects

Pallister Dental Arts PLLC, Knoxville, Tennessee

Pallister Dental Arts PLLC added partners as it grew, reaching eight members. Tennessee charges an LLC annual report at $50 per member, with a $300 minimum and a $3,000 maximum, so the report went from the $300 floor to $400. A Tennessee corporation with the same eight shareholders would file a $20 report. On top of the report, Tennessee runs a genuine calculated franchise tax on net worth alongside its excise tax on net earnings.

Members8
Report fee$400
Same entity as a corporation$20
Cap$3,000 at 60 members

Outcome: Tennessee is the clearest case of a state where entity form and headcount both move the number. Recheck it in any year the member count changes.

Example 3 - one business, three states, three meters

Estuary Line Logistics LLC, formed in Delaware

Estuary Line Logistics LLC was formed in Delaware for the case law, warehouses in Texas and sells into California. That is three registrations and three separate recurring obligations: a $400 Delaware alternative entity tax due June 1 with no report, a Texas information report due May 15 with no fee, and California's $800 franchise tax plus a $20 Statement of Information, which the fee record carries as $820. Three agencies, three calendars, none of which knows about the others.

Delaware$400, June 1
Texas$0, May 15
California$820, April and anniversary month
Total$1,220 a year

Outcome: Forming in a cheap state does not make the other states cheaper. It adds one. Put every registration on one monitoring list rather than three calendars.

Deadline Discipline: the Only Hard Part

Franchise obligations fail in a characteristic way: quietly, a year or more after formation, on a date nothing in daily operations surfaces. The escalation is uniform: late penalties and interest first, loss of good standing next (which blocks loans, certificates, and many contracts), then suspension or administrative dissolution, which ends the liability shield and hands your name to whoever wants it. Reinstatement is always possible and always costs more: back filings, accumulated penalties, and a reinstatement application. The deadline calendar by state lives in annual report deadlines; the recovery process in reinstatement.

The bottom line

Existence has a price; know yours and calendar it

Every entity you own carries a recurring state obligation somewhere between $0 and $800+, owed in profit and loss years alike. Look yours up in the table, put the deadline somewhere that survives a busy year, and franchise tax stays a line item instead of a crisis.

Common Questions

Frequently asked questions

What is franchise tax?

A state-level tax on the privilege of existing or doing business as a registered entity, unrelated to franchising. Some states charge flat amounts (Delaware LLCs: $400), some charge minimums regardless of profit (California: $800), and some calculate on margin or net worth (Texas, Tennessee). It is owed on top of, and separately from, income tax. Concept guide: franchise tax requirements.

Which states have no franchise tax and no annual report fee for LLCs?

A handful keep LLC upkeep at or near zero: New Mexico, Arizona, Missouri, and Ohio charge no annual report fee and no LLC franchise tax; Texas charges no report fee but requires the annual franchise filing; Idaho and Minnesota require reports at $0. Formation fees and other taxes still apply. See the full table above.

Do I owe California franchise tax if my LLC made nothing?

Yes. California's $800 is a minimum tax on existence, owed from the first tax year until the LLC formally dissolves, profitable or not. Above $250,000 of gross receipts an additional fee stacks on top. The only exit is formal dissolution with final returns. Details: the California LLC guide.

Is franchise tax the same as an annual report fee?

Functionally they overlap: both are recurring state charges for keeping an entity registered. States label them differently: Delaware calls its LLC charge an annual tax with no report, most states attach a fee to an annual report, and a few (California, Texas) run genuine tax calculations. What matters is the same: a recurring obligation with a deadline. See deadlines by state.

What happens if I do not pay franchise tax?

The state stacks penalties and interest, revokes good standing (blocking financing and certificates), then suspends or administratively dissolves the entity, ending its liability protection. Reinstatement requires all back taxes, penalties, and filings. California and Texas also void the entity's ability to enforce contracts while delinquent.

Do franchise taxes apply to out-of-state LLCs?

Yes: registering as a foreign LLC in a state generally subjects you to that state's franchise tax and report obligations too. This doubling is exactly why forming out of state usually costs more, not less. See best state to form an LLC.

Next step

Never miss an entity deadline again.

Compliance monitoring tracks every state's franchise tax and annual report deadline for every entity you own, with filings prepared before they are due.

Authoritative sources

This guide is written from the official sources below. Fees, forms, and deadlines change; confirm the current requirement with the agency before you file.

Disclosure. File.Business is a private filing service, not a government agency and not a law firm. We prepare and submit filings at your direction, and nothing on this page is legal or tax advice. Filing fees, deadlines, and statutory references are current as of the last-updated date shown above and can change. Confirm current requirements with the relevant state agency before you file.

D
Written by

David Park

Covers state franchise tax, annual reports, and the no-tax-due thresholds that catch growing LLCs. Former state tax auditor turned compliance writer. Specializes in Texas, New York, Pennsylvania, and Illinois filing systems. Reach out: <a href="mailto:[email protected]">[email protected]</a>

Start your business in the next 5 minutes.

No state-fee markup. Pay only the state fee. 60-day money-back guarantee.

No state-fee markup 60-day money-back Cancel anytime
From $0 + state fee Start my business