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LLC vs corporation: what does each cost in state fees?
In six of the ten most-searched states the filing fee is the same for an LLC and a corporation: Texas $300, Washington $180, Wyoming $100, Georgia $100, Nevada $75 and Colorado $50. The gap opens in the yearly charges: a Nevada corporation pays at least $650 a year against $350 for an LLC, and a Delaware corporation pays at least $225 against a flat $400 LLC tax.
Side by side in ten states
State fees only. "To start" is the formation filing plus any fee the state requires with it. "Each year" is the report fee plus any flat annual tax or minimum franchise tax, with a biennial report counted at half per year. A figure marked min. is a floor that rises with authorized shares, capital or assets.
| State | LLC to start | LLC each year | Corporation to start | Corporation each year |
|---|---|---|---|---|
| California (corporation) | $70 | $810 | $100 | $825 |
| Texas (corporation) | $300 | $0 | $300 | $0 |
| Florida (corporation) | $125 | $138.75 | $70 | $150 |
| New York (corporation) | $250 | $4.50 | $125 | $4.50 |
| Delaware (corporation) | $110 | $400 | $109 min. | $225 min. |
| Wyoming (corporation) | $100 min. | $60 min. | $100 min. | $60 min. |
| Nevada (corporation) | $75 | $350 | $75 min. | $650 min. |
| Washington (corporation) | $180 | $70 | $180 | $70 |
| Georgia (corporation) | $100 | $50 | $100 | $50 |
| Colorado (corporation) | $50 | $25 | $50 | $25 |
Every state for both business types is in the Rank table; the full corporation list is in corporation formation cost by state.
Where the two differ
California charges an LLC $70 to form and a corporation $100. Both then pay $800 a year to the Franchise Tax Board, the annual LLC tax for one and the minimum franchise tax for the other; the LLC files a $20 statement of information every two years and the corporation a $25 statement each year. The state's page says corporations incorporated on or after January 1, 2020 are not required to pay the minimum franchise tax in their first taxable year, and that the $800 LLC tax is due even if the LLC is not conducting business.
Florida charges an LLC $125 to form and a corporation $70 ($35 to file plus a $35 registered agent designation); the annual report is $138.75 for an LLC and $150 for a corporation. New York charges an LLC $250 ($200 articles plus the $50 certificate of publication) and a corporation $125; both file a $9 biennial statement. Delaware charges an LLC $110 and a corporation $109 for a one-page certificate; the LLC pays a flat $400 annual tax with no report, while the corporation files a $50 annual report and pays a franchise tax of at least $175 under the authorized shares method.
Nevada charges $75 to form either, as a minimum for a corporation. Each year an LLC pays a $150 annual list and the $200 state business license; a corporation pays an annual list of at least $150 and a $500 business license.
Where they are the same
Texas charges $300 to form either and lists no Secretary of State report fee for either; the franchise tax report goes to the Comptroller. Washington is $180 to form and $70 a year for both. Georgia is $100 and $50 a year for both. Colorado is $50 and $25 a year for both. Wyoming is $100 to form either, and the $60 annual report is a minimum for both that rises with the value of assets in Wyoming.
These are the state's own filing fees. They leave out registered agent fees, local licenses and income-based taxes, and they say nothing about how either business type is taxed.
Common questions
Does a corporation cost more than an LLC to form?
Not by state filing fee in most of these ten states. Texas, Washington, Wyoming, Georgia, Nevada and Colorado charge the same for both. California charges an LLC $70 and a corporation $100; Florida charges an LLC $125 and a corporation $70; New York charges an LLC $250 and a corporation $125; Delaware charges $110 and $109.
What does a California LLC pay each year compared with a corporation?
An LLC pays the $800 annual LLC tax plus a $20 statement of information every two years, $810 a year. A corporation pays the $800 minimum franchise tax plus a $25 annual statement, $825 a year.
What does a Delaware corporation pay each year compared with an LLC?
A corporation files a $50 annual report and pays a franchise tax of at least $175, so at least $225. An LLC pays a flat $400 annual tax and files no report.
Why does a Nevada corporation cost more each year than an LLC?
The state business license is $500 for a corporation and $200 for an LLC, and the corporation's $150 annual list is a minimum that rises with the value of authorized shares. An LLC pays $350 a year; a corporation at least $650.
Which of these states charges nothing each year?
Texas lists no Secretary of State report fee for an LLC or a corporation. The franchise tax report goes to the Comptroller with no filing fee.