LLC Annual Fees by State 2026: All 50 States Compared

One of the first questions entrepreneurs ask when forming an LLC is: How much will it cost in the U.S. to set up and maintain my company? The answer isn’t always simple, which is why we’ve compiled the full breakdown of LLC annual fees by state and LLC filing fees by state for 2026. After researching official state government sources, this guide explains everything you need to know about the fees required to launch and maintain your LLC.

The reality is, if you fail to pay your required state fees, your LLC could lose its good standing or even be dissolved. That’s why every U.S. business owner must pay attention to state deadlines and file annual tax returns on time.

For non-residents, starting an LLC in the U.S. can be even more challenging. Many overlook the ongoing costs and don’t realize how much state filing and renewal fees can affect their choice of location. Comparing LLC annual fees by state ensures you choose the most cost-effective option.

To save you hours of research, we’ve outlined every state’s LLC filing fees and ongoing renewal costs in one complete guide.

Stay tuned.

What Are LLC Filing Fees by State? (2026)

When you start your LLC company in any of the states in the US, you need to pay a fee for filing the required legal documents; that is called the LLC filing fee. It is a one-time fee you must pay for your LLC. Most of the state fees remain constant in the annual filing. But in some US states, fees may vary. Such as LLC annual fees in Texas are $0, and LLC annual fees in Florida are $138.75.

What Are LLC Annual Fees by State? (2026)

The LLC annual fee is an obligatory fee paid to the state every year to keep your LLC in good standing and in compliance with the law and meeting your annual LLC compliance requirements. According to the state, you must pay LLC annual state fees every 1 or 2 years. This fee is compulsory regardless of the income or activity of your LLC.

Therefore, you must pay the LLC’s annual fee every year. If you fail to pay the annual fee, the state will dissolve or close your LLC company at any time.

Here given complete List of LLC Filing & Annual Fees by State in 2026 with Details:

Cheapest State to Form an LLC in 2026

Here, let’s talk about the cheapest states and most costly states for LLCs in the US. After going through this section, we are pretty sure that you will be able to decide where you are going to start your LLC and where you are not.

Free LLC States: No Annual Renewal Fees in 2026

While every state charges a one-time filing fee to form an LLC, a few jurisdictions don’t assess any recurring (annual or biennial) fee or report requirement, making them effectively “free” to keep in good standing. If your priority is minimizing ongoing costs, consider one of the following states:

Note: You still pay the one-time formation fee listed above, but these states won’t hit you with any annual or biennial bill thereafter. If you’re looking for a truly “set-and-forget” LLC, these are your best bets.

Most Expensive States to Form an LLC in 2026

Here is the list of states where you need to pay more fees than any other state in the US.

Do Non-Residents Pay the Same LLC Fees?

Yes — state filing and annual fees are the same for US residents and non-residents. The state of formation does not distinguish between where you live. Whether forming a domestic LLC or registering as a foreign LLC, the state fees remain the same when setting its fees. Whether you are in the US, Bangladesh, India, or Nigeria, you pay the same $100 Wyoming filing fee (see Wyoming Secretary of State fee schedule) and the same $0 annual renewal fee.

The key difference for non-residents is the added complexity of obtaining an Employer Identification Number (EIN), maintaining a registered agent (required by all states), and filing the correct US tax forms. These are not state fees but federal and third-party costs that non-residents must budget for separately.

Are LLC Annual Fees Tax Deductible?

Yes — LLC annual fees, state filing fees, and franchise taxes are generally tax-deductible as ordinary and necessary business expenses under IRS Publication 535. This applies to both residents and non-resident LLC owners filing US business returns.

Keep records of all state fee payments. They can be deducted on your LLC’s federal return (Form 1065 for multi-member LLCs or Schedule C for single-member LLCs treated as sole proprietorships). Consult a US tax professional to confirm treatment for your specific situation.

What Happens If You Don’t Pay LLC Annual Fees?

Failure to pay state LLC annual fees has serious consequences. Most states will first mark your LLC as “not in good standing,” which can disqualify you from opening US bank accounts, signing contracts, or receiving payments. If you continue to miss payments, the state can administratively dissolve your LLC — meaning it no longer legally exists.

Reinstatement is possible in most states but requires paying all back fees plus a reinstatement penalty (typically $50–$200). If the LLC has been dissolved for more than a few years, you may need to file as a new entity. To avoid this, set calendar reminders for your state’s annual report deadline every year.

Frequently Asked Questions: LLC Annual Fees by State

Q1: What is the difference between LLC filing fees and annual fees?

LLC filing fees are one-time costs you pay when forming your LLC — the state charges this fee to process your Articles of Organization. Annual fees (also called annual reports, franchise taxes, or renewal fees) are recurring charges you pay every year (or every two years in some states) to keep your LLC in good standing.

Q2: Which U.S. state has the lowest LLC filing fees?

Kentucky has one of the lowest filing fees at $40. Arkansas and Arizona charge around $50. However, for non-residents, Wyoming ($100 filing fee, $0 annual fee) is often the best overall value because it combines a low formation cost with no recurring annual fees.

Q3: Which U.S. states have no annual LLC fees?

Wyoming, New Mexico, Ohio, Missouri, and South Carolina do not charge annual LLC renewal fees. Note that some of these states still require periodic reports even if no fee is charged. Wyoming and New Mexico are the most popular choices for non-resident founders for this reason.

Q4: What are LLC annual fees in California?

California charges an $800 minimum franchise tax every year, due by the 15th day of the 4th month of your tax year (source: California Franchise Tax Board). This fee applies regardless of whether your LLC earned any income. California also charges a gross receipts fee for LLCs earning over $250,000/year, making it one of the most expensive states to maintain an LLC.

Q5: Is there an annual fee for an LLC?

Most US states charge some form of annual LLC fee, though the amount varies widely. States like Wyoming and New Mexico charge $0 in annual fees. States like California charge $800+. Most states fall somewhere in between, typically $25–$300 per year.

Q6: Are LLC annual fees tax deductible?

Yes. LLC annual fees, state franchise taxes, and annual report fees are generally deductible as ordinary and necessary business expenses under IRS guidelines (see IRS Publication 535). Keep records of all payments and report them on your LLC’s federal tax return. Consult a CPA for specifics related to your filing situation.

Q7: What happens if I don’t pay my LLC annual fees?

If you miss your state’s annual fee deadline, your LLC will typically be marked “not in good standing.” This can prevent you from opening bank accounts, entering contracts, or receiving payments. Continued non-payment can lead to administrative dissolution of your LLC. Reinstatement requires paying all back fees plus a penalty.

Q8: Do non-residents pay the same LLC fees as US residents?

Yes. US states charge the same filing and annual fees regardless of whether the LLC owner is a US resident or a foreign national. Non-residents may have additional costs such as registered agent fees and EIN application services, but the state fees themselves are identical.

Key Takeaways

• Wyoming and New Mexico have no annual LLC fee — the most cost-effective states for non-resident founders
• Most US states charge $50–$300/year in annual report or franchise fees
• California charges a $800 minimum franchise tax every year — one of the most expensive in the US
• LLC filing fees are one-time formation costs; annual fees recur every year (or every two years in some states)
• Non-residents pay the same state fees as US residents
• LLC annual fees are generally tax-deductible as an ordinary business expense
• Missing annual fee deadlines can lead to loss of good standing or administrative dissolution

Bottom Line: Choose Your State Wisely

The United States remains one of the best countries to start a business, but every state comes with different opportunities and costs. Understanding LLC annual fees by state and LLC filing fees by state is essential before deciding where to form your company.

By comparing these fees early, you can choose the most cost-effective state and avoid surprises that may affect your business in the long run. Whether you want the cheapest states, those with no renewal fees, or a state with strong business advantages, knowing the exact costs helps you make a smart decision.

If you’re ready to establish your LLC without the hassle of complex paperwork or state compliance, the experts at Business Globalizer can guide you through every step.