Comparison

LLC Franchise Tax & Annual Fee Gotchas (2026)

Research dated Sep 7, 2026 (Pacific/Honolulu). Figures pulled from verified state hubs on this site — each links to official SOS / revenue / statute sources. Re-verify before you budget.

Formation headlines lie about year two. These are the recurring SOS and revenue traps that quietly dominate three-year cost — flat annual LLC taxes, steep report fees, “cheap” Articles that require list/license stacks, and $0 franchise states that still demand a free report.

Not a best-state ranking. This is a gotcha roundup. For full charter rankings see cheapest states (3-year). Provider RA math is separate on the 3-year provider comparison.

At a glance

State / trap	Recurring	Formation	~3-yr state
1. California Annual LLC tax (FTB)	$800	$70	$2,510
2. Massachusetts LLC Annual Report	$500	$500	$2,000
3. Delaware Annual LLC / LP / GP tax (no report)	$400	$110	$1,310
4. Tennessee SOS Annual Report (min; scales with members)	$300	$300	$1,500
5. Maryland Business Entity Annual Report (Form 1)	$300	$100	$1,000
6. District of Columbia Biennial Report	$300	$99	$699
7. Nevada Annual List ($150) + State Business License ($200)	$350	$75	$1,475
8. Arkansas Annual Franchise Tax Report (LLC)	$150	$45	$495
9. Florida Annual Report (with supplemental fee)	$138.75	$125	$541.25
10. Texas Franchise tax $0 under threshold — PIR still required	$0	$300	$300
11. New York Biennial Statement (publication is the real cost)	$9	$200	$209

The gotchas

California — $800 recurring

Flat $800 annual tax is owed even with $0 revenue until the LLC is cancelled with the SOS. First-year exemption window (2021–2023 organize dates) does not apply to 2026 formations. Late-year filing can stack first-year tax with the next April 15 payment. Gross-receipts LLC fee stacks on top at California total income ≥ $250k.

Due: 15th day of 4th month of taxable year (April 15 for calendar-year); first year due 15th day of 4th month after SOS filing
Formation fee (hub): $70
~3-year state fees (hub): $2,510
Source: Official source · Full California hub

Massachusetts — $500 recurring

One of the highest flat LLC annual report fees ($500/year). Online/electronic filings commonly add the Division’s expedite surcharge (~$20 on a $500 filing → ~$520). Do not confuse the Corporations Division annual report with MassTaxConnect tax filings.

Due: On or before the anniversary date of the Certificate of Organization
Formation fee (hub): $500
~3-year state fees (hub): $2,000
Source: Official source · Full Massachusetts hub

Delaware — $400 recurring

Flat $400 every year the entity exists — tax payment only, no LLC annual report. Some Division overview pages still show $300; dedicated tax instructions and 6 Del. C. § 18-1107(b) say $400 (re-confirmed 2026-09-07). Late: $200 + 1.5%/mo. Each registered series adds $100/yr.

Due: On or before June 1 following the tax year
Formation fee (hub): $110
~3-year state fees (hub): $1,310
Source: Official source · Full Delaware hub

Tennessee — $300 recurring

SOS annual report is $50/member with a $300 minimum and $3,000 maximum — multi-member LLCs pay more than the formation headline. Franchise and excise taxes filed with the Department of Revenue are separate and can exceed the $100 franchise minimum used in the hub’s 3-year floor.

Due: On or before the first day of the fourth month after fiscal year end (e.g. April 1 for calendar-year)
Formation fee (hub): $300
~3-year state fees (hub): $1,500
Source: Official source · Full Tennessee hub

Maryland — $300 recurring

$300 Form 1 fee is steep versus the $100 Articles fee unless waived via MarylandSaves (or a qualifying retirement-plan certification) for a given year. Missing Form 1 can forfeit the charter / right to do business.

Due: April 15 each year
Formation fee (hub): $100
~3-year state fees (hub): $1,000
Source: Official source · Full Maryland hub

District of Columbia — $300 recurring

Biennial $300 is steep versus many states’ annual reports. Basic Business License (BBL) and possible UBF tax sit outside the SOS formation math and can dominate year-one cost if you operate in DC.

Due: Biennial (see DLCP Corporations Division)
Formation fee (hub): $99
~3-year state fees (hub): $699
Source: Official source · Full District of Columbia hub

Nevada — $350 recurring

Articles are only $75 — Initial List ($150) + Business License ($200) push typical SOS formation to $425, then ~$350 every anniversary month. Miss both and late penalties stack. Commerce Tax may apply above $4M Nevada gross revenue (excluded from SOS subtotal).

Due: Last day of formation anniversary month each year
Formation fee (hub): $75
~3-year state fees (hub): $1,475
Source: Official source · Full Nevada hub

Arkansas — $150 recurring

Cheap $45 online formation, but the recurring obligation is a $150 franchise tax (not a classic $0 annual report). Tax continues until dissolution/withdrawal; late payment can block other BCS filings and lead to revocation.

Due: See Arkansas BCS franchise tax calendar
Formation fee (hub): $45
~3-year state fees (hub): $495
Source: Official source · Full Arkansas hub

Florida — $138.75 recurring

Missing the May 1 annual report triggers an automatic $400 late fee ($538.75 total that year). Prolonged non-filing risks administrative dissolution; reinstatement is $100 plus each missed annual report. File only at Sunbiz — third-party solicitations are common.

Due: By May 1 each year
Formation fee (hub): $125
~3-year state fees (hub): $541.25
Source: Official source · Full Florida hub

Texas — $0 recurring

No SOS annual report and $0 franchise tax when annualized total revenue is at or below the $2.65M no-tax-due threshold (report years 2026–2027) — but the free Public Information Report is still mandatory each May 15. A missing/unsigned PIR can forfeit the right to transact business.

Due: May 15 annually (Comptroller)
Formation fee (hub): $300
~3-year state fees (hub): $300
Source: Official source · Full Texas hub

New York — $9 recurring

SOS math looks cheap ($200 Articles + $9 biennial), but LLC Law §206 publication (two newspapers, six weeks, then Certificate of Publication + $50) often costs hundreds to low thousands by county and is excluded from the SOS 3-year subtotal. Miss the 120-day window and authority to do business can be suspended.

Due: Biennial Statement in formation anniversary month every two years
Formation fee (hub): $200
~3-year state fees (hub): $209
Source: Official source · Full New York hub

How this page is built

Source of truth: each figure comes from the matching state hub on this site (same numbers as the per-state pages) — no invented fees.
Includes: SOS / revenue / franchise / LLC annual taxes and report fees as modeled on each hub.
Excludes: professional registered agent, variable newspaper publication, expedites, and income/sales taxes except stated franchise floors.
Delaware note (2026-09-07): re-checked Division tax instructions + § 18-1107(b) — still $400; howtoform still shows stale $300.

Form lean, then calendar the annual bill

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