Each state charges an annual fee to maintain a corporation. In many states, you must also submit an "annual report" or "list of directors and officers," which is a one-page form sent by the state. Some states also have state taxes. The annual fees for three popular states - California, Nevada and Delaware - are as follows:
- California: A $25 reporting fee and a list of directors and officers are required every year, beginning 60 days after incorporation. State income tax for C corporations in 2004 was 8.84% with an $800 minimum (the minimum tax is waived the first year). State income tax for S corporations in 2004 was 1.5% for most types of income, with a minimum of $800 (the minimum is waived the first year).
- Nevada: The minimum initial filing fee for Nevada is $75 (which increases based on the total number of shares authorized). An additional $125 fee is due with the company's Initial List of Officers and Directors 30 days after incorporation. The minimum annual fee is $125 (which increases based on the total number of shares authorized). There is no state income tax or franchise tax.
- Delaware: A minimum annual franchise tax of $35 (which increases based on the total number of shares authorized). The annual report filing fee is $25. There is no state income tax.
- Every other state: Contact a local accountant.
To learn more and speak with a representative, please call us at (888) 381-8758. We are happy to answer any questions you may have.
