Posted Wednesday, July 8, 2020

Here are the formation fees by each state for domestic limited liability companies (LLCs) and corporations, including foreign entity registrations. Domestic and foreign does not mean U.S. and international… it is stated based. Wal-Mart is a foreign entity in Colorado since they are domiciled in Arkansas. Typically you will register your business where your butt resides or where you do substantially all the work. State nexus issues and state income tax sourcing is complicated, and we can certainly help.

For now, here are the formation fees to get your business registered with the Secretary of State. Our fee is $625 plus the fees below… if you need an initial report or something similar (California, Nevada, etc.) then our fee is $125 plus the fee for filing the report. If you have foreign owners (ie, not U.S. citizens or non-resident aliens), then our fee is $925 plus the fees below.

We have also included an Annual Fee amount below. Be careful with this! There are multiple sources of annual fees; first is the Secretary of State and second could be a Department of Revenue or some other taxing agency. For example, California’s annual report with the Secretary of State is $20 but California’s Franchise Tax Board also charges a minimum franchise tax of $800. Therefore, your minimum cash out of pocket would be $820 but being paid to different recipients. Other states such as Delaware, New Mexico, New York and Texas are similar.

State	Domestic LLC	Domestic Corp	Foreign Entity	Annual Fee	Extra Crud
Alabama	195	165	150	100
Alaska	250	250	350	100, due every 2 years
Arizona	85	95	185	NA	Publication fee of 299 for either entity
Arkansas	50	50	270	150
California	75	145	70	20, plus franchise tax
Colorado	50	50	100	10
Connecticut	175	455	120	20
Delaware	145	145	250	NA, but annual tax
District of Columbia	220	220	220	300, due every 2 years
Florida	155	78.75	160	138.75
Georgia	100	100	225	50	C Corp publication fee of 199
Hawaii	50	50	50	15
Idaho	100	101	120	0, still need to file report
Illinois	260	285	150	75
Indiana	100	100	125	20, due every 2 years
Iowa	50	50	100	45, due every 2 years
Kansas	160	90	165	50
Kentucky	55	55	90	15
Louisiana	105	100	150	35	Notary fee of 19
Maine	175	145	250	85
Maryland	220	220	100	300
Massachusetts	520	295	500	500
Michigan	50	60	50	25
Minnesota	160	160	205	0, still need to file report
Mississippi	50	50	250	0, still need to file report
Missouri	50	58	105	NA
Montana	70	70	70	20
Nebraska	125	65	120	10, due every 2 years	Publication of 199 for either entity
Nevada	425	725	425	350
New Hampshire	100	100	100	100
New Jersey	128	128	125	75
New Mexico	50	100	100	NA, but franchise tax
New York	210	145	250	9, due every 2 years	LLC publication fee varies by county
North Carolina	125	125	250	202
North Dakota	135	100	135	50
Ohio	125	125	99	NA
Oklahoma	104	78	300	25
Oregon	100	100	275	100
Pennsylvania	125	125	250	70, due every 10 years	C Corp publication fee of 399
Rhode Island	156	230	150	50
South Carolina	146	135	110	NA, unless taxed as an S Corp
South Dakota	150	150	750	50
Tennessee	325	125	300	300
Texas	310	310	750	0, still need to file report, possible franchise tax
Utah	72	72	70	20
Vermont	125	125	125	35
Virginia	104	79	100	50
Washington	200	200	180	60
West Virginia	132	82	150	25
Wisconsin	130	100	100	25
Wyoming	103	103	100	52 minimum

Business formations can appear straightforward, but there can be some pitfalls. Which entity should you select? Does it matter if you are in California when choosing between an LLC or Professional Corporation (spoiler, it does)? The first button below will go through various business entity types and review the benefits of each.

Next is a multiple entity arrangements. Are you going into business with someone else? How do you want to share profits? Or… do you own equipment or real estate that you want to lease back to your business?

The last button is about operating agreements which are not as critical for a single-member limited liability company (SMLLC)… but if you have partners beyond a spouse, then there are some serious things to consider. Check out these additional resources.

Do you still have business formation questions? Not sure which state you have nexus in? Still confused on S corporations, and how that factors into forming an LLC or corporation? Let’s chat!

WCG CPAs & Advisors is a boutique business advisory CPA firm located in Colorado yet serving small business owners worldwide.