LLC state-specific guides (50 states)

LLC formation requirements, costs, and ongoing obligations vary significantly across the 50 states. This guide provides a comprehensive comparison of filing fees, annual report requirements, and notable state-specific quirks that business owners should be aware of when choosing where to form their LLC.

32 steps across 8 sections

1. California: $800 Franchise Tax

  • Every LLC doing business in California owes an $800/year franchise tax, regardless of income
  • This applies even to LLCs formed in other states that are registered as foreign LLCs in California
  • The tax is due by the 15th day of the 4th month after formation, then annually on April 15
  • New LLCs formed after January 1, 2024 are exempt from the $800 minimum for their first tax year
  • California also imposes an additional LLC fee based on total income (ranging from $900 for income over $250K to $11,790 for income over $5M)

2. New York: Publication Requirement

  • Within 120 days of formation, New York LLCs must publish a notice of formation in two newspapers (one daily, one weekly) in the county of the LLC's principal office
  • Publication must run for six consecutive weeks
  • Cost varies dramatically by county:
  • New York City (Manhattan): $1,000-$2,000+
  • Albany County: $200-$400
  • Rural counties: $100-$300
  • After publication, file a Certificate of Publication with the NY Department of State ($50)
  • Failure to publish within 120 days results in suspension of the LLC's authority to conduct business

3. Nevada: Business License + Commerce Tax

  • $425 formation fee is among the highest
  • $200/year state business license required for all LLCs
  • $150 annual list filing
  • Commerce tax applies to businesses with over $4M in gross revenue
  • Despite "no income tax" marketing, total costs are higher than most states

4. Texas: No Annual Report, But Franchise Tax

  • No traditional annual report
  • Texas franchise tax (margin tax) applies to businesses with revenue over $2.47M (2026 threshold)
  • Below the threshold, you still must file a "no tax due" report
  • $300 formation fee is above average

5. Massachusetts: Highest Formation and Annual Fees

  • $500 annual report fee
  • Total first-year cost of $1,000+ before any other expenses

6. Tennessee: Per-Member Fees

  • Minimum $300 formation fee ($50 per member, minimum 6 members assumed)
  • Annual report also uses per-member pricing
  • Single-member LLCs still pay the $300 minimum

7. Pennsylvania: Decennial Report

  • Instead of annual reports, Pennsylvania requires a decennial report (every 10 years) for $70
  • This makes Pennsylvania one of the lowest ongoing-cost states
  • However, missing the 10-year deadline can result in administrative dissolution

8. Illinois: Annual Report With Publication

  • Some counties require publication of the LLC's formation
  • Annual report fee of $75

Sources

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