Introduction
When establishing a Limited Liability Company (LLC) or C Corporation (C-Corp), it is essential to recognize the requirements for keeping your business registration in good standing. Compliance with the laws of a state includes the most common aspect of annual filing fees, which differs from one state to another. In addition to these fees, franchise taxes, and other state fees charged if your business is not in good standing must be paid. In this article, we will provide the state-wise base fee for filing annual returns for different LLCs and C-corporations within the USA, additional compliance aspects, and what profits may be derived from staying active in your entity through required documentation.
What Are Annual Filing Fees?
Annual filing fees are a legal requirement that every business is compelled to pay to the respective state. Such fees apply to LLCs and C-Corps and are necessary for the preservation of the company’s legal standing. Owing to non-payment of such fees, there may be penalties, loss of limited liability, or even the business entity may be dissolved.
To find out more about how to register an LLC or a C-Corp, this thorough article contains practical instructions on organizing LLCs from the U.S. Small Business Administration Office.
Why Do States Charge Annual Filing Fees?
States impose annual registration fees with a view of keeping companies in line with the law as well as in compliance with regulations. These fees are a way for the state to keep an up-to-date record of all registered companies as well as boost the budget. The amount of such fees and requirements always differs, depending on the type of company’s legal form, the state where it operates, and how active it is in business operations.
For example, the reports filed annually on states’ corporate activities may include additional charges whereby franchise tax may be paid by LLCs and C-Corps as well in most instances. The expenses that subsidiaries incur on the other hand which are frequently charged after a […] may be based on corporate taxes, sales, or assents differ in the region’s guidelines. Provide additional materials about this topic that may help explain who has to pay franchise taxes and for whom it may be dispensed on this IRS website.
Frequently Asked Questions (FAQs)
1. What are the annual filing fees for a US LLC?
Even as US LLC formation varies by state, so do the Annual filing fees. Some states charge fees commencing from as low as $10, others even hundreds of dollars. Some states charge a franchise tax for LLC which is in addition to the annual fee charged above. Below is a comprehensive table on fee structures for different states.
2. What are the annual filing fees for a US C-Corp?
Similar to LLCs, C-Corps are also liable to filing annual fees. Amount flutters according to the jurisdiction. In addition to the filing fee, C-Corps may be required to pay franchise taxes and other state-specific fees. Intending to practice these will help you steer clear of issues with their status of C-Corp.
3. Are there any states with no annual filing fees?
There are also states such as Wyoming and South Dakota where there are low or no annual filing fees required for Limited Liability Companies and Corporations (LLC). Even still, such states may impose additional compliance requirements to be met by the businesses.
4. What happens if I don’t pay the annual filing fee?
A person who does not pay the annual filing fee risks having his or her business1264 cause loss of good standing, as well as incur penalties, and fines and lose the business through administrative dissolution. The only way to avoid all these other problems is through compliance.
5. How do I calculate the franchise tax for my LLC or C-Corp?
Franchise tax computation differs by the state including other concerns such as income and other revenue sources, several assets, or the total number of shares issued. Some state tax authorities have information about such issues or you may utilize a franchise tax calculator for your state.
6. Can I pay my annual filing fee online?
Yes, it is possible to pay most annual filing fees online in most states. This has simplified the work of the businesses and aided the compliance of the law by states. You can usually look for such payment options online on the website of the Secretary of State in your state.
Table: Annual Filing Fees for US LLCs and C-Corps by State
| State | LLC Annual Filing Fee | C-Corp Annual Filing Fee | Franchise Tax |
| Alabama | $100 | $100 | $100+ based on assets |
| Alaska | $100 | $100 | $0 |
| Arizona | $0 | $45 | $50 |
| Arkansas | $150 | $150 | $150 |
| California | $800 | $800 | $800+ |
| Colorado | $10 | $10 | $0 |
| Connecticut | $250 | $250 | $250 |
| Delaware | $300 | $225 | $175 minimum |
| Florida | $138.75 | $150 | $0 |
| Georgia | $50 | $50 | $0 |
| Hawaii | $15 | $15 | $0 |
| Idaho | $0 | $0 | $0 |
| Illinois | $75 | $75 | $0 |
| Indiana | $50 | $30 | $0 |
| Iowa | $45 | $45 | $0 |
| Kansas | $55 | $55 | $0 |
| Kentucky | $15 | $15 | $175 minimum |
| Louisiana | $30 | $30 | $0 |
| Maine | $85 | $85 | $0 |
| Maryland | $300 | $300 | $300 |
| Massachusetts | $500 | $456 | $456 minimum |
| Michigan | $25 | $25 | $0 |
| Minnesota | $0 | $0 | $0 |
| Mississippi | $0 | $25 | $0 |
| Missouri | $0 | $0 | $0 |
| Montana | $20 | $20 | $0 |
| Nebraska | $10 | $25 | $0 |
| Nevada | $350 | $350 | $350 |
| New Hampshire | $100 | $100 | $100 minimum |
| New Jersey | $50 | $50 | $0 |
| New Mexico | $0 | $50 | $0 |
| New York | $9 | $9 | $0 |
| North Carolina | $200 | $200 | $0 |
| North Dakota | $50 | $50 | $0 |
| Ohio | $0 | $50 | $0 |
| Oklahoma | $25 | $25 | $0 |
| Oregon | $100 | $100 | $0 |
| Pennsylvania | $70 | $70 | $0 |
| Rhode Island | $50 | $50 | $0 |
| South Carolina | $25 | $25 | $0 |
| South Dakota | $50 | $50 | $0 |
| Tennessee | $300 | $300 | $300 minimum |
| Texas | $0 | $0 | $0 |
| Utah | $20 | $20 | $0 |
| Vermont | $35 | $35 | $35 |
| Virginia | $50 | $50 | $50 |
| Washington | $60 | $60 | $0 |
| West Virginia | $25 | $25 | $0 |
| Wisconsin | $25 | $25 | $0 |
| Wyoming | $50 | $50 | $0 |
Benefits of Paying Annual Filing Fees for LLCs and C-Corps
1. Good Standing Maintenance: Annual filing fees bring lawfulness to the business as a corporation in the state, and you can carry on with the business without any legal hindrances.
2. Liability Protection: For LLCs, annual fee payment helps sustain limited liability, protecting one’s private property from business debts.
3. Preventing Fees: A big percentage of the associated fees when filing including late fees will be avoided as they are completely uncalled for.
4. Ease of Conducting Business: In the case of C-Corps, an annual filing requirement must be complied with to allow share issuance, bring in investors, and exercise the administrative power of the corporation.
5. Legal Filings: Making the right filings advances state compliance by the business which is critical in the business growth for the foreseeable future.
6. Enhancement of Business Reputation: Meeting state requirements continuously boosts a business’s reputation and the client base, partners, and investors growing.
Conclusion
Comprehending the annual filing fees applicable to US LLCs and C-Corporations is very important. As every business has legal requirements, such fees will inevitably be much cheaper than the legal expenses for any penalties that must be incurred. Protecting your business in any state while making sure you observe annual filing schedules can assist in saving the business. No matter if it’s an LLC or a C-Corp, the advantages reaped from following the law fully, exceed the disadvantages nearly one hundred percent.
