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Costs and rankings
States with a yearly minimum tax on LLCs (2026)
7 jurisdictions on our list charge an LLC a fixed yearly amount on top of, or instead of, a report fee. The highest is California at $800 a year.
Fixed yearly taxes and fees
| State | What the state calls it | Per year | First due | 5-year total |
|---|---|---|---|---|
| California | Annual LLC tax (Franchise Tax Board) | $800 | the first year | $4,130 |
| Delaware | Annual LLC tax | $400 | the year after formation | $1,690 |
| Rhode Island | Minimum state tax | $400 | the first year | $2,350 |
| Kentucky | Limited liability entity tax (minimum) | $175 | the first year | $975 |
| Arkansas | Annual franchise tax report | $150 | the year after formation | $650 |
| Tennessee | Franchise tax (minimum) | $100 | the first year | $2,000 |
| New York | Annual filing fee (LLCs with New York income) | $25 | the first year | $343 |
How much of the total is tax
Across these 7 states the yearly tax makes up 80% of the combined 5-year state fees. In 2 of them the first payment falls in the year after formation, so year one looks cheaper than the years that follow.
Not in the list because the tax applies only to some LLCs: District of Columbia, Vermont. Their state pages explain who pays.
Not included until its fees are confirmed on official pages: Texas.
In most of these states the amount is due whether or not the LLC earns money; where a state sets a condition, such as income from that state or a revenue limit, its state page explains it. Taxes based on income or revenue are separate and not shown here.
Sources, read verified 2026-11-15: ftb.ca.gov/forms/misc/3556.html · corp.delaware.gov/alt-entitytaxinstructions/ · docs.sos.ri.gov/documents/BusinessServices/LLCArticlesOfOrganizationFi · revenue.ky.gov/Business/Corporation-Income-and-Limited-Liability-Entit · sos.arkansas.gov/uploads/LLC_FT_2020.pdf · tn.gov/revenue/taxes/franchise---excise-tax.html · tax.ny.gov/pit/efile/annual_filing_fee.htm
Questions
- Which states charge an LLC a minimum tax?
- California, Delaware, Rhode Island, Kentucky, Arkansas, Tennessee, New York.
- Is the minimum tax due if the LLC made no money?
- In most of them yes, as long as the LLC exists; a few apply it only under conditions, such as income from that state, explained on each state page.
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