Knowledge Center

Limited Liability Company FAQ

How much will it cost to form and operate an LLC?

Each state charges an annual fee to maintain an LLC. In many states, you must also submit an "annual report" or "statement of information," 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 $20 reporting fee and a statement of information are required 90 days after formation and then every two years. An annual $800 LLC tax is due 75 days after LLC formation and every year thereafter. There is a minimum annual fee of $865 if the LLC's net income exceeds $250,000.

  • Nevada: A $125 fee and an Initial List of Managers and Members are due 30 days after formation. The annual report filing fee is $125. There is no state income tax or franchise tax.

  • Delaware: There is an annual LLC tax of $200 due each June 1, beginning the year following formation. There is no state income tax.

  • New York: Every LLC must publish notice of its formation in two newspapers in the county in which it was created. In some areas, the fees for this publication can run up to $2,000. The company must then submit a certificate of this publication to the state, together with a $50 filing fee. For LLCs that choose to be treated as a partnership, there are annual fees that increase based on the number of members the company has (from a minimum of $325 to a maximum of $10,000).

  • Every other state: Contact a local accountant.

LegalZoom can help you save time when you form an LLC. Answer a few questions in our online questionnaire, we’ll check your answers for consistency and completeness, and file the required documentation with your state. Once your LLC is formed, we send you a final package with all of your documents. We also can help you get in touch with independent attorneys to answer questions about your business.

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