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What are the four recurring costs of keeping a US LLC alive?
Four costs repeat every year: your state's annual report or franchise tax, a registered agent, your federal information return (Form 5472 with a pro forma Form 1120 for a foreign-owned single-member LLC), and anything optional you buy for mail or extra services. Formation fees are paid once. Maintenance is the bill that keeps arriving.
Quick Answer: A foreign-owned US LLC costs roughly $100 to $1,000+ per year to maintain. The recurring items are the state annual report or franchise tax, registered agent service (about $50 to $300), the annual Form 5472/1120 filing, and optional virtual mail. Formation fees are one-time and separate. Government fees and provider fees are never the same line item.
State rules drive most of the variance. Some states charge a flat annual report fee. Some charge no annual report but still levy a franchise tax. California charges an $800 minimum franchise tax, and income-based LLC fees sit on top of that [5]. Texas has no annual report at all, but the franchise tax still exists.
That split matters for you. A state with a $0 annual report is not automatically cheap. A state with a $60 report can still beat one with an $800 minimum tax.
Say your LLC is a Wyoming single-member LLC owned by you, a non-US resident with no US office. Your yearly bill is the Wyoming annual report, your registered agent, and one federal filing. Nothing else is mandatory.
How much are state annual report and franchise tax fees by state?
State annual report fees run from $0 to about $500, and franchise tax is a separate charge in several states. The table below lists government fees only. No provider costs are mixed in.
| State | Annual report fee | Franchise or minimum tax | Due date | Notes |
|---|---|---|---|---|
| Wyoming | $60 (minimum) | None | First day of the anniversary month | Minimum fee; higher for larger assets |
| Delaware | $300 | None for most LLCs | June 1 | Flat LLC tax |
| New Mexico | $0 | None | No annual report | Cheapest recurring state fee |
| California | $0 report, but annual tax due | $800 minimum franchise tax | April 15 | Extra LLC fee on California income above $250,000 [5] |
| Texas | No annual report | Franchise tax | May 15 | No tax due under the no-tax-due threshold |
| Florida | $138.75 | None | May 1 | Annual report required even at $0 revenue [4] |
| Massachusetts | $500 | None | Anniversary date | One of the higher report fees |
Read the California row twice. The $800 is a tax, not a report fee, and it applies whether or not you made money. The additional LLC fee is income-tiered: $900 at $250,000 to $499,999 of California income, $2,500 at $500,000 to $999,999, and higher above that [5].
Heads-up: the annual report is due even in a year with zero revenue. Skip it and the state adds a penalty and, in time, dissolves the LLC administratively.
Suppose you registered a California LLC in 2025 and earned nothing in 2026. You still owe the $800 minimum franchise tax. Budget for it the month you form the company, not the month the bill arrives.
What should a registered agent cost for a foreign-owned LLC?
A fair price for basic registered agent service is $100 to $150 per year. The market runs from about $50 on the low end to $300 for premium packages with mail scanning and compliance reminders.
A registered agent is the person or company that accepts legal papers and state correspondence on your LLC's behalf. The agent must have a physical street address in the state of formation. A PO box does not count.
You can act as your own registered agent only if you have a real physical address in that state and are physically there during business hours. From India, that is not realistic. You need a service.
What a basic plan should include:
- A physical address in your formation state
- Receipt and forwarding of service of process
- State mail forwarded to you, scanned or posted
- Your name and address listed correctly with the state
What you do not need to pay extra for: a second "compliance" subscription that only sends you calendar reminders. Set those yourself for free.
Tip: if a provider bundles registered agent, virtual mail and a compliance dashboard into one $300+ plan, check whether the base agent service alone is available. If you want help choosing between formation and agent options, see US LLC formation for non-residents.
What federal filings does a foreign-owned LLC need to pay for each year?
A foreign-owned single-member LLC files Form 5472 with a pro forma Form 1120 every year. The IRS charges $0 to file it. The penalty for not filing is $25,000.
This is an information return. No US tax is due on it in most cases. You file it because the IRS wants a record of transactions between the LLC and its foreign owner, including the owner's capital contributions and payments to the owner.
Three things people get wrong here:
- They assume no tax due means no filing. Wrong. The filing is mandatory.
- They file Form 5472 alone. It goes with a pro forma Form 1120, not by itself.
- They miss the deadline. Form 5472/1120 is due April 15 for a calendar-year LLC, with an extension available on Form 7004.
A multi-member LLC is treated as a partnership and files Form 1065 instead. The entity classification drives the form, so confirm yours before you file.
Preparer fees are where the real cost sits: $300 to $1,000+ depending on complexity and who prepares it. That is a provider fee, not a government fee. Keep the two apart in your budget.
On FinCEN beneficial ownership reporting: the rule has moved repeatedly through 2025, and domestic companies were exempted from the requirement in a March 2025 interim final rule. Foreign reporting companies still had an obligation under that interim rule. The BOI report itself is free to file on FinCEN's site.
If you want the filing walked through step by step, federal tax support for Form 5472 and Form 1120 covers the mechanics.
What do you not have to pay for when maintaining a US LLC?
The EIN is free. The BOI report is free. Your operating agreement template can be free. Plenty of founders pay for all three anyway.
Your EIN (Employer Identification Number, the IRS tax ID for your company) costs nothing when you apply directly with the IRS on Form SS-4. Third parties charge $50 to $300 to submit the same form for you. Some of that is convenience. Some of it is a tax on not knowing the process.
If you want the form handled without an SSN, getting an EIN as a non-US resident explains the fax and phone routes.
Other things you should not be paying for:
- State business search. Every Secretary of State site lets you check name availability for free.
- Basic operating agreement. A single-member LLC operating agreement is a short document. Templates exist. A lawyer review is worth paying for; a $200 "operating agreement package" from a formation mill usually is not.
- Compliance reminders. Calendar apps are free.
- Duplicate registered agent fees. If your formation package includes an agent for year one, do not buy a second one.
Suppose a formation bundle quotes you $399 and lists "EIN, BOI filing, compliance package, operating agreement" as value-adds. Most of those items cost you nothing direct. You are paying for someone to click through forms you can file yourself.
What is the total yearly cost to maintain a US LLC by state?
Expect $100 to $1,000+ per year for a foreign-owned LLC, depending on state and whether you pay a preparer. The table separates government fees from provider fees.
| State | Government (annual) | Registered agent (typical) | Federal prep (optional) | Estimated total |
|---|---|---|---|---|
| Wyoming | $60 | $100 to $150 | $300 to $1,000 | $160 to $1,210 |
| New Mexico | $0 | $100 to $150 | $300 to $1,000 | $100 to $1,150 |
| Delaware | $300 | $100 to $150 | $300 to $1,000 | $400 to $1,450 |
| Texas | Franchise tax (often $0 under threshold) | $100 to $150 | $300 to $1,000 | $100 to $1,150 |
| California | $800 minimum tax | $100 to $150 | $300 to $1,000 | $900 to $1,950 |
| Florida | $138.75 | $100 to $150 | $300 to $1,000 | $240 to $1,290 |
Notes on the table: government fees are official state charges. Registered agent pricing is a market range, not an official rate. Federal preparer fees are optional and vary by preparer. Formation fees, virtual mail, and sales tax registrations are excluded.
For founders from India, Wyoming and New Mexico are the two cheapest annual states. Delaware costs more every year but gives you a court system that investors and lawyers know. California is expensive whether or not you earn anything there.
Imagine you formed a Wyoming LLC in 2025, do your own federal filing, and pay a $125 agent. Your 2026 maintenance bill is $185 plus whatever you spend on tax advice. That is the whole number.
Common Mistakes
Missing the annual report because the state did not email you. Most states do not send reminders to foreign addresses. Put the due date in your calendar the day you form the LLC.
Assuming no tax due means no filing. Form 5472 is an information return. The $25,000 penalty applies whether or not you owed tax.
Paying for an EIN. The IRS charges nothing. If a provider quotes you a fee for the EIN alone, you are paying for convenience, not a government charge.
Using a PO box as a registered agent address. The state rejects it. Your agent needs a physical street address in the formation state.
Choosing California for the prestige. The $800 minimum franchise tax applies from year one, regardless of revenue [5]. If you have no California customers or office, you are paying for nothing.
Forgetting the state where you actually operate. If you run the business from a US office or have US-based employees, you may owe registration and taxes in that state too, on top of your formation state. That is nexus, and it is a real cost.
Letting a formation bundle auto-renew without checking. Some packages renew at a higher rate in year two. Read the renewal terms before you sign up.
Frequently Asked Questions
Do I have to pay an annual fee for my LLC every year? Most states require an annual report or franchise tax. A few, like Texas, have no annual report but still impose a franchise tax. Registered agent service is recurring if you use one.
What is the cheapest state to maintain an LLC from abroad? New Mexico and Wyoming have the lowest recurring government fees. New Mexico charges no annual report; Wyoming charges a $60 minimum. Add your registered agent cost to compare totals.
Do foreign-owned LLCs pay federal annual fees? No federal filing fee exists. Form 5472 with a pro forma Form 1120 is still required, and the penalty for not filing is $25,000. Preparer fees are separate and optional.
Is registered agent service required for a foreign-owned LLC? Yes, in practice. You need a physical address in the state. If you do not have one, you need a service, and basic service runs about $100 to $150 per year.
What happens if I miss my LLC annual report? The state adds a late fee and eventually dissolves the LLC administratively. Reinstatement costs more than the original filing. The exact penalty varies by state.
Can I avoid paying for an EIN or BOI report? Yes. The EIN is free on IRS Form SS-4. The BOI report, where still required, is free on FinCEN's site.
The number to budget
If you formed a Wyoming or New Mexico LLC and file your own federal return, budget $200 to $300 per year and you are covered. If you formed in California, budget $1,000 or more before you earn a dollar.
Do this now: open a calendar entry for your state's annual report due date and your April 15 federal filing date. Then check what your formation provider will charge you in year two. Most founders overpay on year two because they never read the renewal email.
NexFyla helps non-US founders form US companies and set up EIN and US business banking support. If you want help with US LLC formation, EIN and business setup, NexFyla can assist.
*Last updated: January 2026.*
Related reading
- How Much Does It Cost to Start an LLC in Washington DC?
- How Much Does a US LLC Cost for Indian Entrepreneurs? 2026 Guide
- How Much Does It Cost to Register a Company in the USA in 2026?
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