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Category: Business

  • Cost of Forming & Maintaining USA LLC by State

    Ongoing Costs of Maintaining LLC by State. Maintaining a LLC involves ongoing costs, and it varies by state. These costs can include annual report fees, franchise taxes, and registered agent fees. The following table summarises the recurring fees for each state. As these fees may change over time, it is advisable to check with the relevant state agency for the most up-to-date information.

    State LLCFiling Fee (US$)Annual / Biennial Fee (US$)
    Alabama$200from $50 / year
    Alaska$250$100 / year
    Arizona$50$0
    (no fee & no information report)
    Arkansas$45$150 / year
    California$70$800 / year + $20 / 2 years
    Colorado$50$10 / year
    Connecticut$120$80 / year
    Delaware$90$300 / year
    Florida$125$138.75 / year
    Georgia$100$50 / year
    Hawaii$50$15 / year
    Idaho$100$0
    (need annual information report)
    Illinois$150$75 / year
    Indiana$95$31 / 2 years
    Iowa$50$30 / 2 years
    Kansas$160$50 / year
    Kentucky$40$15 / year
    Louisiana$100$35 / year
    Maine$175$85 / year
    Maryland$100$300 / year
    Massachusetts$500$500 / year
    Michigan$50$25 / year
    Minnesota$155$0
    (need annual information report)
    Mississippi$50$0
    (need annual information report)
    Missouri$50$0
    (no fee & no information report)
    Montana$35$20 / year
    Nebraska$100$13 / 2 years
    Nevada$425$350 / year
    New Hampshire$100$100 / year
    New Jersey$125$75 / year
    New Mexico$50$0
    (no fee & no information report)
    New York$200$9 / 2 years
    North Carolina$175$200 / year
    North Dakota$135$50 / year
    Ohio$99$0
    (no fee & no information report)
    Oklahoma$100$25 / year
    Oregon$100$100 / year
    Pennsylvania$125$7 / year
    Rhode Island$150$50 / year
    South Carolina$110$0
    (no fee & no information report;
    except if LLC is taxed as S-Corp)
    South Dakota$150$50 / year
    Tennessee$300$300 / year
    Texas$300$0 for most LLCs
    (need annual No Tax Due Report &
    Public Information Report)
    Utah$54$18 / year
    Vermont$125$35 / year
    Virginia$100$50 / year
    Washington$200$60 / year
    Washington DC$99$300 / 2 years
    West Virginia$100$25 / year
    Wisconsin$130$25 / year
    Wyoming$100from $60 / year

    States with No Fees and No Reporting Requirements. Some states have no annual fees or reporting requirements for LLCs. The following is a list of these states:

    • Arizona
    • Missouri
    • New Mexico
    • Ohio

    Read About » US LLC Benefits For Foreign Entrepreneurs: Limited Liability, Pass-through Taxation, and More.

    Disclaimer: This is not financial advice. This is not tax advice. The information is provided “as is” without any warranties nor guarantees. Some links in this post may generate a small referral or affiliate income.

  • US LLC Benefits for Foreign Entrepreneurs

    Benefits Of Setting Up A US LLC: Setting up a company based in US allows you to access many services like PayPal, Stripe, Amazon, Kickstarter, etc. If you are a foreign entrepreneur, you may want to consider forming a Limited Liability Company (LLC). A US LLC offers numerous benefits, including limited liability protection, pass-through taxation, flexible ownership and management, and easy market access.

    Limited Liability Protection: Just like an Inc, a LLC provides limited liability protection for its members. The members are not personally liable for the debts and obligations of the company, and their personal assets are protected in case of a lawsuit or bankruptcy. This is especially important for foreign entrepreneurs, as it can provide an extra layer of protection for their assets in their home country.

    Pass-through Taxation: In most states of US, LLCs are not taxed at the state level. Instead, the income and losses of the company are passed through to the members, who report them on their personal tax returns. Here is where it gets interesting. If the members of the LLC are non-US tax residents, it is possible to use the LLC as a tax-free entity legally. Although there may be no applicable state taxes, it is essential to note that members are still required to register and file taxes with IRS at the federal level, regardless of their tax residency status. Non-US tax residents may be subjected to a withholding tax at the federal level. Therefore, it is highly recommended to consult with tax advisors for specific guidance.

    Flexible Ownership And Management: A US LLC can have any number of members, including just one, and these members can be individuals or other corporate entities. One way to potentially reduce tax overheads is to use a corporate entity in a tax-friendly country as a member of the US LLC. It is strongly advised to seek the expertise of a professional to set up the LLC in a tax-efficient way. Remember, tax evasion is illegal, whereas tax reduction is perfectly legal.

    Low Cost And Easy Maintanence: Another benefit of using a LLC is that the costs of formation and maintenace are relatively inexpensive. Some states do not even charge an annual fee for mantaining the LLC!

    Read About » Guide to Understanding the Cost of Forming and Maintaining a USA LLC by State.

    Disclaimer: This is not financial advice. This is not tax advice. The information is provided “as is” without any warranties nor guarantees. Some links in this post may generate a small referral or affiliate income.