When you decide to form an LLC company in Usa, there are some filing fees depending on the states where the formment will take place. These filing fees are divided into two;
- One-time filing fee paid during installation
- Filing fees to be paid to the state in the next year following the installation and every year thereafter (also called Annual/Biennial Report)
Things to know;
- LLC filing fee is one-time: This fee is paid to the state at the time of LLC formation, Registered Agent companies pay this fee to the state on your behalf.
- The agency from which you receive Registered Agent service collects this filing fee from you during the LLC company formation application phase. In this way, you do not need to make a second payment. These filing fees have different amounts in each state.
- Annual payment & Annual Report: Every year, states demand a fee from company owners in the name of annual report. This fee varies by state, for example, in Wyoming it is $62, and in New Mexico there is no annual fee. These fees can be easily paid by credit card online at state websites.
- If you do not pay the annual state fee, your company will be dissolved after a certain period of time. In fact, some states impose a late fee on the amount due if annual report fees are not paid, for example, Delaware has high annual payment penalties.
Here is a list of some states' initial setup and annual payments;
New Mexico: Initial setup fee is $50. There is no annual filing fee, you do not have to pay any fees each year. ( New Mexico company formation guide )
Kentucky: Kentucky is among the states that offer the most affordable LLC formation, with an initial filing fee of $40 for formation and an annual franchise tax fee of $15.
Delaware: Initial setup fee is $90. Annual state tax of $300 is due June 1 each year. For example: Assuming you established your company in May 2024, you need to pay the annual franchise tax by June 1, 2025. If payment is not made, a 200% increase + 1.5% monthly penalty interest will be charged. ( Establishing a Company in Delaware and Its Costs)
Wyoming: Initial setup fee is $103. The annual state fee (annual report fee) is $62. The annual fee must be paid before the company's establishment date. For example: Assuming you established your company on June 1, 2024, you need to pay by May 20, 2025 at the latest. ( Establishing a Company LLC in Wyoming Step by Step )
Florida: Initial setup fee is $125. The annual state tax of $138 must be filed and paid by May 1 of each year. Filing and payment after May 1 are considered late. In Florida, if your annual report is late, you must pay a $400 late fee, bringing your total to $539. If payment is not made, the State Department will close your LLC after the 4th Friday in September.
In the table below, you can see the installation and annual franchise tax (annual report) fees of the most preferred states as of 2024.
Note: A general list of all states is right down the page. It is also worth mentioning that these are the most preferred states.
| STATES | INSTALLATION FEE (ONE TIME) | FRANCHISE TAX (EVERY YEAR) |
| Delaware | 90$ | 300$ |
| Florida | 125$ | 139$ |
| New Jersey | 125$ | 75$ |
| New Mexico | 50$ | $0 (No Annual Fee) |
| wyoming | 103$ | 62$ |
| Kentucky | 40$ | 15$ |
You can view the installation and annual franchise fees for all states as of 2024 in this table.
| STATES | INITIAL SETUP FEE (ONE TIME) | ANNUAL /BIENNIAL REPORT (TO BE PAID EVERY YEAR) |
| Alabama LLC | 200 dollars | $50 minimum (each year) |
| Alaska LLC | 250 dollars | $100 (every 2 years) |
| Arizona LLC | 50 dollars | 0 (no fee and no information report) |
| Arkansas LLC | 45 dollars | $150 (each year) |
| California LLC | 70 dollars | $800 (every year) + $20 (every 2 years) |
| Colorado LLC | 50 dollars | $10 (every year) |
| Connecticut LLC | 120 dollars | $80 (each year) |
| Delaware LLC | 90 dollars | $300 (each year) |
| Florida LLC | $125 | $138.75 (each year) |
| Georgia LLC | 100 dollars | $50 (each year) |
| Hawaii LLC | 50 dollars | $15 (each year) |
| Idaho LLC | 100 dollars | 0 (but an information report must be filed annually) |
| Illinois LLC | 150 dollars | $75 (each year) |
| Indiana LLC | 95 dollars | $31 (every 2 years) |
| Iowa LLC | 50 dollars | $30 (every 2 years) |
| Kansas LLC | 160 dollars | $50 (each year) |
| Kentucky LLC | 40 dollars | $15 (each year) |
| Louisiana LLC | 100 dollars | $35 (each year) |
| Maine LLC | $175 | $85 (each year) |
| Maryland LLC | 100 dollars | $300 (each year) |
| Massachusetts LLC | 500 dollars | $500 (each year) |
| Michigan LLC | 50 dollars | $25 (each year) |
| Minnesota LLC | $155 | 0 (but an information report must be filed annually) |
| Mississippi LLC | 50 dollars | 0 (but an information report must be filed annually) |
| Missouri LLC | 50 dollars | 0 (no fee and no information report) |
| Montana LLC | 35 dollars | $20 (each year) |
| Nebraska LLC | 100 dollars | $13 (every 2 years) |
| Nevada LLC | 425 dollars | $350 (each year) |
| New Hampshire LLC | 100 dollars | $100 (each year) |
| New Jersey LLC | $125 | $75 (each year) |
| New Mexico LLC | 50 dollars | 0 (no fee and no information report) |
| New York LLC | 200 dollars | $9 (every 2 years) |
| North Carolina LLC | $125 | $200 (each year) |
| North Dakota LLC | $135 | $50 (each year) |
| Ohio LLC | 99 dollars | 0 (no fee and no information report) |
| Oklahoma LLC | 100 dollars | $25 (each year) |
| Oregon LLC | 100 dollars | $100 (each year) |
| Pennsylvania LLC | $125 | $7 (every year) |
| Rhode Island LLC | 150 dollars | $50 (each year) |
| South Carolina LLC | 110 dollars | 0 (No fee and information reporting unless LLC is taxed as an S-Corp) |
| South Dakota LLC | 150 dollars | $50 (each year) |
| Tennessee LLC | 300 dollars | $300 (each year) |
| Texas LLC | 300 dollars | $0 for most LLCs (but No Tax Liability Report and Public Information Report must be filed annually) |
| Utah LLC | 54 dollars | $18 (every year) |
| Vermont LLC | $125 | $35 (each year) |
| Virginia LLC | 100 dollars | $50 (each year) |
| Washington LLC | 200 dollars | $60 (each year) |
| Washington DC LLC | 99 dollars | $300 (every 2 years) |
| West Virginia LLC | 100 dollars | $25 (each year) |
| Wisconsin LLC | $130 | $25 (each year) |
| Wyoming LLC | 103 dollars | $62 minimum (each year) |
- , we recommend you read this guide to establish an LLC at an affordable price in almost every state The guide explains how to set up an LLC company in the state of Wyoming, but you can choose a different state and set up with the same method. If you establish your LLC company with Northwest, you do not need to pay the Registered Agent fee for the first year, you can establish your company for only $39 + state fee.
- You can also take a look at the guide to Establishing a Company in Northwest and New Mexico The steps in this guide were applied to New Mexico, where there are no annual taxes and no annual reports.
29 Comments . New Comment
Hello.
Many people have thanked you for this page and the help you provide. I want to do it too. You are doing really good work.
I have two questions for you.
The first is about the state election. I will form a single-member LLC through Northwest Agent and sell the souvenirs I produce in Turkey through my company's website. I do not plan to sell on Amazon, but I plan to sell a few of my occasional products on sites such as eBay and Etsy in order to acquire new customers. More than half of my customers will be from every state in Usa. I am considering collecting payments from my website via credit card (using an application such as Stripe) or Paypal. I plan to sell 2000-3000 products a year and make a profit of over 100,000 USD from them. I do not have any employees, shops, warehouses, etc. in Usa. It won't happen. In which state would you recommend I form an LLC under these circumstances?
My second question is about the sales taxes of the states. When selling from my website, on the check out page where the price of the product, postage and taxes are added, there should be an application that automatically determines the sales tax according to the buyer's state and adds it to the total price. Do you know if Stripe or Paypal do this automatically?
Thank you.
batur
Hello,
You can form an llc in the state of Wyoming for this type of business. There are apps that automatically calculate sales tax on Shopify, and there are tax calculation features in Stripe. You will see this feature as you use the panel.
Thank you very much for your answer, Mr. Nazmi.
Hello,
What is IncAuthority's annual registered agent fee after the first year? I couldn't see it on his website. I wanted to consult you.
Thanks.
Erhan
Hello,
Incauthority is no longer preferred, there are payment problems and the annual renewal is 270 USD.
You can choose Northwest instead of Incauthority. It can be renewed for 125 USD per year. They apply a fixed price and it does not change.
Hello,
it's my last day to file Delaware state taxes.
Is it necessary to do this through a registered agent?
Can I file it online with the tax office myself?
Thank you very much in advance for your help.
Hello,
It is not paid through a registered agent, you can already pay online from the state website.
https://corp.delaware.gov/paytaxes/
Hello, first of all, thank you for your answers.
As of June 1, my annual tax in Delaware has become 400 + 200 dollars, that is, the penalty has been added and it is not possible for me to pay it for a while, I wonder how the process will work from now on,
thank you in advance.
We state at every opportunity that annual taxes are high in the state of Delaware, and this figure is even higher for Corp companies.
If you have a budget problem, I wish you had installed in a more affordable state (Wyoming).
In this case, it seems like there is nothing you can do, you are subject to a delay penalty.
If you don't pay, you may continue to be penalized and your company will likely be terminated.
Kentucky is 40 + 15 dollars (annually), but states such as Arizona, Missouri, New Mexico, which do not have an annual fee, are 50 dollars in total. It seems more logical to me that there will be no recurring costs every year. Am I looking at it differently?
Each state has different procedures, taxes, way of doing business, licensing, etc. It's a matter of preference, of course, you can compare the pros and cons and evaluate.
I did research on licenses and couldn't find them on the site. How can I access state license information for online trade and agency service? Thank you
What is the information report required by the states? Is there any cost?
It is called annual report or also called franchise tax. There is an article about this subject on the site.
If you do not have a store or formed office in the United States, you do not need a license.
Hello ;
Do we pay sales tax in the state of Kentucky?
Are you asking about your sales to people in the state of Kentucky? If so, you will need to collect sales tax if you exceed their limits. You can see the limits and rates available in the table.
Hello Professor,
I would like to point out something to contribute. In fact, it is written in some forums that Franchise tax does not exist in Wyoming. This is because they keep franchise tax and license tax separate. My advice is that it would be better if you indicate license in parentheses next to franchise tax to avoid confusion. Because the annual tax to be paid in every state is also called license fee.
Hello, license can be perceived very differently, so it generally makes sense to use the same term for all of them. Thank you for your contribution, we will take it into consideration.
Thank you very much for your quick and kind reply. I'm waiting for the next article.
You're welcome After a long effort, I compiled the transaction/turnover limits for foreigners on a state basis, which would be more useful to us, instead of deducting sales taxes.
Sales taxes are a complete mystery because they vary from city to city :) For this reason, I shared the link of a calculation tool from a reliable source in the same article, I hope it will be useful to everyone.
https://startupsole.com/yabancilar-icin-abd-eyaletlerini-gore-satis-vergileri/
Hello,
your articles are really very detailed and informative, thank you especially.
But there is one issue that comes to my mind: After filling out the 5472 form you mentioned, we come to a situation where we do not pay taxes in the USA, okay, but ultimately, this is a profit and we have to pay taxes somewhere. In this case, will we bring the money to TR and pay taxes here? Or how will the situation progress if we choose to pay taxes in the USA? It would be great if you could add a detailed article on this subject and compare the costs of pre-registration and company formation. Thank you. But I couldn't find a comparison of tax brackets across states. Thanks in advance.
River
Thanks for your comment and interest.
Depending on your income level, of course, when you transfer the income you earn in the USA to Turkey and this income starts to become regular, you may be able to pay your taxes here in accordance with the tax agreement between the two countries. However, this situation is proportional to the amount and continuity of income. (It may be better to ask this to a consultant specialized in foreign trade and e-commerce in TR.) As a result, if you earn a good income and provide a money flow from abroad to the country, this situation will attract the attention of tax officials or your bank in TR in the future, depending on the amount. can pull.
It is quite difficult to write down the sales tax rates of all states because it requires very detailed research. As a result, a situation such as misleading people may arise. By the way, the information here is only the data I obtained as a result of my research. So it is not possible for me to provide accounting or tax support. However, I can make such a compilation by looking at the websites of the most preferred states, provided that I cite the source.
A similar question to the question you asked about taxation was also asked by a different reader under another topic. I'm leaving the link, it might interest you because I tried to give a long answer to that topic.
https://startupsole.com/inc-authority-ile-amerika-da-sirket-kurmak/#comment-64
Good luck!
Hello,
You have compared installation etc. costs, but what about issues such as taxes, for example, you earned 3-5 thousand, in this case, I wonder how much the tax you pay will differ between these states.
Hello Mr. Ugur,
Please review the guides below. If you meet the requirements (you own a single-owner LLC and have no dependents, subsidiaries, or employees in the US), you will only report income. So, all you have to do is report your income to the state by filling out form 5472. As of 2018, the law requires this. These forms did not exist before, but they became mandatory after that period. A single-owner LLC is not considered a US corporation, it is considered an individual, we just report the income to the state every year with this form. (EIN number is required at this stage)
Information about taxation: https://startupsole.com/amerikada-vegişma/
Free form (declaration) that you must fill out every year: https://startupsole.com/amerika-disindaki-lccler-icin-form-5472-gercegi/
I hope it was explanatory.
Hello,
Thank you for your quick reply. Frankly, I was not aware that the tax section was like this, and I have been reading sources on these issues for a long time. It was a wonderful surprise, thank you. I think that the part about not having a representative mentioned in the tax-related conditions probably means that the brokerage firms that set up the installation are not considered registered agent services.
Many places highlight Delaware as a state closer to the business world, but when I looked at it from time to time, I also saw Nevada and Wyoming as more logical, but of course I also included the tax part in the calculations. In this case, as you said, kentucky is perhaps much more attractive. I was thinking of doing it with Incfile because they do it at a reasonable price and solve all bank address filing and work, but when you mention it in your articles, I will evaluate it in detail.
Thank you again for sharing detailed and difficult to find information.
enjoy your work,
ugur
You're welcome, Mr. Ugur.
Believe me, I researched a lot of sources regarding the tax part and after applying this method myself, I saw that there was no problem. Tax attorneys (and attorneys' offices in the US) who deal with these matters are generally more knowledgeable on these issues than Registered Agents. I can give you many resources on this subject from law firm websites. If you Googling “form 5472” or “form 5472 foreign citizen”, there are a lot of resources. There are also details about this form on the IRS site.
Registered Agents do not fill out these forms. There are places that charge for the operation of these, after forming the company, when that period approaches, you can search and find them. There are many, I can send them if you want...
As for the Delaware part, there are many Registered Agents there, so we have always encountered them until today. I think it's because of marketing activities. Delaware makes more legal sense for large businesses. (See also, https://startupsole.com/delaware-mi-wyoming-mi/ ) Delaware has a court just for business transactions, they protect companies a lot. For startup companies like us, states such as Kentucky, Wyoming, and New Mexico make more sense. By the way, most of the entrepreneurs dealing with dropshipping and Amazon from India and Nigeria have turned to the state of Kentucky. You can find many examples.
If you can handle the EIN process yourself and want peace of mind about the address part, instead of Incfile, https://startupsole.com/go/northwest/ (Northwest Agent) is more logical. They also provide address service within the annual fee. EIN in Northwest is 200 dollars, don't bother with the bank, most of them can be rejected, the most logical one is MErcusry bank. There is also a guide about Mercury in this blog, you can search and read it. Mercury is the most logical and trouble-free solution in the banking department because it is an entrepreneur-friendly bank.
I hope your business goes well, I wish you good luck in advance.
Hello. I opened an llc in the state of New Mexico. What happens if I do nothing about taxes? Should I submit an annual report? Do I need to file a return if my company generates no income and what happens if I don't? Thanks.
There are no annual reports in the state of New Mexico. You must pay the annual subscription fees of the registered agent on the installation anniversary, do not miss this date