What Is The Annual Fee For An LLC?

Is the annual fee a flat rate or increase as capital increases?

Answer

Depends on which state you’re in. Some states have no annual fee, others charge a flat fee, and still others have a fee that increases with capital up to a maximum.

For example, California has an $800 “franchise tax” that must be paid annually, along with an annual fee based on income earned in California (thanks to the case involving Northwest Energetic Services, LLC v. California Franchise Tax Board, in which the annual fee was held unconstitutional when applied to non-California income).

This California annual fee can go as high as $12,000, for LLCs with incomes of $5 million+.

It sounds like I need to create a summary of annual fees by state along with an explanation of how they operate.

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