The Costs of Maintaining an LLC in the United States

Maintenance costs and procedures for your LLC

What are the costs of maintaining my LLC? Will I have to do a lot of paperwork? Will I have to pay taxes? If you’ve asked yourself any of these questions, you’ve come to the right place.

In this article, we’ll explain what these procedures consist of, what the costs are, and how ExpressFormations takes care of them for its clients.

Annual report and state fee

What does it consist of?

The Annual Report is a document required in most states, which must be filed - usually - one year after your company is registered.

Along with the Annual Report, your State will require payment of a fee, which is also mandatory to keep your company operational.

It’s important to clarify that the Annual Report is not a financial report, and doesn’t report on profits or losses.

What is it for?

The purpose of the Annual Report is to keep track of what Americans call compliance, which could be understood as a way of telling the State “everything is in order here, I want to continue doing business.” Additionally, it keeps your contact information updated so you can receive any notifications from the State.

What happens if I don’t file it?

If you don’t file the Annual Report, or don’t pay the fee, you may end up facing fines and the dissolution of your company.

Is it mandatory in all states?

As we said at the beginning, not all states have the same requirements. There are 5 states where there’s no obligation to file an Annual Report, and they don’t charge a fee:

• Arizona
• Missouri
• New Mexico
• Ohio
• South Carolina

On the other hand, there are 4 states that require filing an Annual Report but don’t charge a fee:

• Idaho
• Minnesota
• Mississippi
• Texas

The rest of the states will require both filing the Annual Report and paying a fee.

The costs of each state

Here we detail the deadline to file the Annual Report and the cost of fees in some states:

• Florida: $138.75 (plus renewal costs). Deadline: May 1st.
• Delaware: $300 (plus renewal costs). Deadline: June 1st.
• Wyoming: $50 (plus renewal costs). Deadline: Depends on the LLC formation month.

Registered agent

What is it?

A Registered Agent is an entity registered in the state where an LLC was formed that the state needs to verify annually and is used as the official address to receive any notification or legal document from the state.

The Registered Agent must be available during business hours to receive any type of notification. A PO box or virtual mailbox cannot be your Registered Agent. It must be a physical office acting on behalf of the company.

Cost

The cost is $199 in any of the states.

Is it mandatory in all states?

In all 50 states where we offer business registration services, it’s mandatory to have a Registered Agent, and renew it every year. Of course, the only state where you’ll need a Registered Agent is the state where your company is incorporated.

Taxes and income tax filing

Each company’s tax situation is unique and depends on various factors: whether the company has physical presence in the United States, what type of commercial activity it performs, the nationality of its owners, etc.

If you want to know everything about the taxes an LLC with foreign owners must pay, we recommend our specialized article. Below, we’ll give a brief summary of some general topics related to taxes.

What are my obligations to the IRS?

All LLCs, whether they pay taxes or not, are required to file an annual income tax return. Depending on the number of owners the LLC has (single owner, or more than one), they’ll file their tax return using different forms.

It’s also highly recommended that LLCs with more than one member keep their books and records up to date, which can be easily automated through software.

For LLCs with foreign owners, document filing deadlines vary according to the company structure: April 15th for single-member LLCs and March 15th for those with multiple members, corresponding to the current fiscal year.

How much does it cost to file taxes?

Although the United States doesn’t require these documents to be signed by a CPA (Certified Public Accountant), it’s highly recommended to leave these matters in the hands of a professional. At ExpressFormations, we offer this specialized service for $399, providing the peace of mind and security your company needs in its fiscal management.

Conclusion

Take the leap toward new global opportunities. At ExpressFormations, we offer expert advice for forming LLCs in the USA. Contact us now!, free of charge, and we’ll provide guidance. Start expanding your business beyond borders.

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This article provides general information and does not constitute legal or tax advice. Regulations may change. Consult with qualified professionals for specific guidance about your situation.