Annual Compliance Cost Index: Maintenance Fees by State & Entity
# Annual Compliance Cost Index: Maintenance Fees by State & Entity
Formation is a one-time event; compliance is forever. The annual cost of maintaining a business entity varies by more than 50x between the cheapest and most expensive states. This index breaks down every recurring obligation so founders can project their true multi-year cost of ownership before choosing where to incorporate.
Annual Cost Summary: LLC vs C-Corp by State
| State | LLC Annual Report | LLC Franchise Tax | C-Corp Annual Report | C-Corp Franchise Tax | Total LLC/Year | Total Corp/Year |
|---|---|---|---|---|---|---|
| Wyoming | $60 | $0 | $60 | $0 | $60 | $60 |
| Ohio | $0 | $0 | $0 | $0 | $0 | $0 |
| Missouri | $0 | $0 | $0 | $0 | $0 | $0 |
| New Mexico | $0 | $0 | $0 | $0 | $0 | $0 |
| Texas | $0 | $0 (under $2.47M) | $0 | $0 (under $2.47M) | $0 | $0 |
| Nevada | $150 | $0 | $150 | $0 | $150 | $150 |
| Florida | $138.75 | $0 | $150 | $0 | $138.75 | $150 |
| Delaware | $0 (no report) | $300 | $50 | $175+ | $300 | $225+ |
| California | $20 | $800 | $25 | $800 | $820 | $825 |
| New York | $9 (biennial) | $25 | $9 (biennial) | $25+ | $29.50 | $29.50 |
| Massachusetts | $500 | $500 | $125 | $456 | $1,000 | $581 |
Five-Year Total Cost of Ownership
The true cost of maintaining a business entity becomes clear only when projected over multiple years. This analysis includes all mandatory state fees, registered agent costs (industry average $125/year), and typical compliance service fees.
| State | Year 1 (Formation + Compliance) | Years 2-5 Annual | 5-Year TCO |
|---|---|---|---|
| Wyoming | $160 | $185 | $900 |
| Ohio | $99 | $125 | $599 |
| Texas | $300 | $125 | $800 |
| Nevada | $575 | $275 | $1,675 |
| Florida | $363.75 | $263.75 | $1,418.75 |
| Delaware | $390 | $425 | $2,090 |
| New York | $232 | $159.50 | $870 |
| California | $890 | $945 | $4,670 |
| Massachusetts | $1,075 | $1,125 | $5,575 |
| Illinois | $225 | $200 | $1,025 |
Late Filing Penalties: The Hidden Cost
Missing compliance deadlines triggers penalties that can exceed the original filing fee. In extreme cases, states administratively dissolve entities that remain non-compliant, requiring expensive reinstatement procedures.
| State | Late Annual Report Penalty | Administrative Dissolution Timeline | Reinstatement Fee |
|---|---|---|---|
| California | $250 + 5% monthly | 60 days after notice | $30 + back taxes |
| Delaware | $200 + 1.5%/month | 3 years delinquent | $200 + all back fees |
| Florida | $400 | 1 year after due date | $100 + back fees |
| Nevada | $75 + revocation | 1 year delinquent | $300 + back fees |
| New York | No penalty (biennial) | 2 years delinquent | $25 |
| Texas | $0 (no annual report) | Forfeiture after 3 years | $25 |
| Wyoming | $0 (included in fee) | 2 years delinquent | $50 + back fees |
Registered Agent: Included vs Additional Cost
Every state requires a registered agent with a physical address in that state. For founders forming in their home state, they can serve as their own agent at no cost. For out-of-state formations, commercial registered agent services are mandatory.
Industry pricing for registered agent services in 2026 ranges from $79/year ($49/year in Wyoming) at Lovie to $299/year at traditional providers. Over five years, this single line item represents $245–$395 at Lovie (depending on state) versus up to $1,495 at traditional providers — making provider selection a significant TCO factor.
You can automate your annual compliance with Lovie formation services and receive proactive deadline reminders, automatic filings, and registered agent service at $79/year ($49/year in Wyoming).
Further Reading
- file annual report — detailed walkthrough
- everything you need to know about maryland annual report
- complete llc tax filing resource
Frequently Asked Questions
What happens if I miss my annual report deadline?
Consequences vary by state but typically follow a pattern: late fee assessment (immediate), warning notice (30-60 days), administrative dissolution or revocation (60 days to 3 years). Once dissolved, you lose legal protections and must file for reinstatement with back fees.
Which states have zero annual compliance costs?
Ohio, Missouri, and New Mexico impose no annual report fees and no franchise taxes for LLCs. Texas has no annual report requirement and exempts businesses under $2.47 million from its margin tax. However, all states still require maintaining a registered agent.
Is California's $800 franchise tax avoidable?
The $800 minimum franchise tax applies to all LLCs and corporations doing business in California, regardless of where they are formed. Forming in another state does not avoid this tax if you have California operations. The only exemption is for first-year LLCs (waived through 2026 under AB 85).
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Sources: State revenue departments, Secretary of State fee schedules, and FTC Small Business Compliance Resource Center. Updated August 2026.
Form your company with Lovie — $29 one-time + state fees; registered agent $79/year.