What does an LLC cost every year?
Yearly LLC costs depend on your state. Some charge nothing or under $100 for an annual report, while California charges at least $800 a year in tax. Delaware charges a flat $300. Add a registered agent if you use one. Missing a filing can cost your LLC its good standing.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- California. At least $800 yearly minimum franchise tax
- Delaware. $300 annual LLC tax
- Miss it. Your LLC can lose good standing
What do you actually pay each year?
Formation is the one-time cost. After that, most states charge one or more of these.
- An annual or biennial report fee
- A franchise tax or minimum tax
- A registered agent fee, if you pay a service
- Local business licenses
| State | Typical yearly cost | Notes |
|---|---|---|
| California | $800 minimum | Plus a fee at higher revenue, and a report every two years |
| Delaware | $300 | Annual tax due June 1, no report |
| Florida | About $139 | Annual report, due by May 1 |
These change, so check your state's website before budgeting. Our 50-state page has the basics for income and sales tax too.
What happens if you miss it?
States can charge late fees, then move your LLC out of good standing or dissolve it administratively. That can mean losing your name, being unable to get a bank loan, and in the worst case, weakening your liability protection. Reinstating costs more than the fee you skipped.
Why did you get a letter that looks like a bill?
Scam mailers go out to new LLCs, with official-looking "annual compliance" notices. They're private companies charging a lot for a filing you can do on the state's website. Check the sender. If it's not your Secretary of State or revenue department, don't pay it.
Are the fees deductible?
Yes. Ongoing state fees and registered agent costs are business expenses. Formation fees are organizational costs with their own rule.
What about other yearly costs?
Beyond state fees, budget for business insurance, a business return if your LLC has more than one owner, and bookkeeping software. Multi-state LLCs pay some of these in each state.
If a state's fee seems too high, don't just form elsewhere to avoid it. That rarely works. And if your LLC is dormant, either keep it filed or formally close it. Skipping filings tends to cost more than either option.
Sources
- California FTB: Limited Liability Company
- Delaware Division of Corporations: LLC annual tax
- Florida Division of Corporations
General information, not tax advice for your situation.
Starting a business?
We form the LLC, get the EIN and set up your books.
See our LLC formation serviceDo you have to pay for an LLC every year?
In most states, yes, through an annual report fee or tax. A few states have low or no recurring fee.
What happens if I don't pay my LLC fees?
Your LLC can lose good standing, or be dissolved by the state, usually after late fees.
Does an LLC with no income still pay the fee?
Usually yes. Many state fees apply regardless of income, including California's $800 tax.
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