LLC Franchise Tax by State: 2024 Annual Fees
Every state treats LLC taxes differently. Some charge nothing, some charge a flat annual fee, and California charges a minimum $800 per year regardless of revenue. Here is what every state charges so you can plan your costs before you form or expand an LLC.
The term “franchise tax” is misleading. It has nothing to do with owning a franchise restaurant or retail concept. It is simply the fee a state charges for the legal right to operate an LLC within its borders. Most states also require an annual report filed alongside the payment. Miss the deadline and your LLC can be administratively dissolved, which means you lose your liability protection and cannot legally sign contracts until you reinstate.
LLC Franchise Tax and Annual Fees by State (2024)
Figures reflect the annual franchise tax or LLC maintenance fee due to the state. They do not include local city taxes, registered agent fees, or federal income taxes. Always verify amounts with your state’s Secretary of State website before filing.
| State | Annual LLC Tax / Fee | Basis | Due Date |
|---|---|---|---|
| Alabama | $100 minimum | Business Privilege Tax; 0.175% of net worth | April 15 |
| Alaska | $100 | Biennial report fee | Jan 2 (every 2 yrs) |
| Arizona | $0 | No annual report or franchise tax for LLCs | N/A |
| Arkansas | $150 | Annual franchise tax flat fee | May 1 |
| California | $800 minimum | 1.5% of net income; $800 floor every year | April 15 |
| Colorado | $10 | Annual report fee only | Anniversary month |
| Connecticut | $80 | Annual report fee | Anniversary month |
| Delaware | $300 | Flat annual tax for most LLCs | June 1 |
| Florida | $138.75 | Annual report fee (no state income tax) | May 1 |
| Georgia | $50 | Annual registration fee | April 1 |
| Hawaii | $15 | Annual report fee | Anniversary quarter |
| Idaho | $0 | Annual report only; no franchise tax | Anniversary month |
| Illinois | $75 | Annual report fee | Anniversary month |
| Indiana | $50 biennial | Report fee every two years | Every 2 yrs |
| Iowa | $60 | Biennial report fee | April 1 (every 2 yrs) |
| Kansas | $55 | Annual report fee | April 15 |
| Kentucky | $15 | Annual report fee; LLET tax also applies | June 30 |
| Louisiana | $35 | Annual report fee | Anniversary month |
| Maine | $85 | Annual report fee | June 1 |
| Maryland | $300 | Personal Property Return / annual fee | April 15 |
| Massachusetts | $500 | Annual excise tax on LLCs | March 15 |
| Michigan | $25 | Annual statement fee | February 15 |
| Minnesota | $0 | No annual report fee for LLCs | Dec 31 (report only) |
| Mississippi | $0 | Annual report; no franchise tax for LLCs | April 15 |
| Missouri | $0 | No annual fee or franchise tax | N/A |
| Montana | $35 | Annual report fee only | April 15 |
| Nebraska | $26 | Biennial report fee | Every 2 yrs |
| Nevada | $200 | State Business License + annual list fee | Anniversary month |
| New Hampshire | $100 | Annual report fee | April 1 |
| New Jersey | $75 | Annual report fee | Anniversary month |
| New Mexico | $0 | No annual report or franchise tax | N/A |
| New York | $25 | State biennial fee; NYC UBT adds up to $3,400 | Every 2 yrs |
| North Carolina | $200 | Annual report fee | April 15 |
| North Dakota | $50 | Annual report fee | November 15 |
| Ohio | $99 | Annual report fee (franchise tax abolished) | Anniversary month |
| Oklahoma | $25 | Annual certificate fee | Anniversary month |
| Oregon | $100 | Annual report fee; CAT tax may apply | Anniversary month |
| Pennsylvania | $0 | Decennial report only; no annual fee | Every 10 yrs |
| Rhode Island | $50 | Annual report fee | November 1 |
| South Carolina | $25 minimum | License fee based on capital | January 1 |
| South Dakota | $50 | Annual report fee; no state income tax | Anniversary month |
| Tennessee | $300 | Annual franchise tax; $0.25 per $1,000 net worth | April 15 |
| Texas | $0–varies | Exempt if revenue < $2.47M; else 0.75% of margin | May 15 |
| Utah | $18 | Annual renewal fee | Anniversary month |
| Vermont | $35 | Annual report fee | March 15 |
| Virginia | $50 minimum | Annual registration fee based on authorized shares | Anniversary month |
| Washington | $60 | Annual report fee; B&O tax also applies | Anniversary month |
| West Virginia | $25 | Annual report fee | July 1 |
| Wisconsin | $25 | Annual report fee | Quarter of formation |
| Wyoming | $60 minimum | Annual report; 0.0002 × assets in Wyoming | Anniversary month |
States with the Lowest LLC Overhead Costs
If you have flexibility in where you form your LLC, these five states consistently rank lowest for annual LLC maintenance costs. Wyoming charges just $60 per year and has no state income tax. New Mexico charges nothing at all after formation — no annual report, no franchise tax. Colorado keeps it to $10 per year. Arizona and Missouri also charge nothing ongoing.
The catch is that you still owe taxes in the state where you actually do business. Forming in Wyoming when you live and operate in California does not exempt you from California’s $800 annual minimum. You would end up registered in two states and paying both. For most small business owners who operate in one state, the best LLC state is simply the state where they live and work.
How Franchise Tax Deadlines Work
Most states tie the annual report and franchise tax due date to either a fixed calendar date (like April 15 or May 1) or the anniversary of your LLC formation date. Some states — including Alaska, Indiana, Iowa, and Nebraska — only require filings every two years, which cuts administrative work in half.
Penalties for late filing vary by state but are typically $50 to $250 for the first missed payment, plus interest accruing at 1–1.5% per month. California is among the strictest: a $2,000 penalty for non-filing, and the FTB can suspend your LLC’s ability to do business until all taxes and penalties are paid. Set a recurring calendar reminder 60 days before your deadline every year so you never miss it.
Note: Tax rates and fees change annually. Verify your state’s current rates at your Secretary of State website before filing. This page is for informational purposes only and is not legal or tax advice. For LLC formation, ZenBusiness handles state filing and annual report reminders starting at $0 plus state fees.