For non-resident founders, the lowest-friction states are usually the ones with low recurring fees, no publication requirement and predictable registered-agent maintenance. But compliance is only one input: banking, payment eligibility, tax treatment and where the company actually operates can matter more than a cheap annual report.
Fast highlights from the matrix
These states show $0 annual state fee in the current dataset, though registered-agent, federal tax and business-license obligations can still apply.
Arizona, Delaware, Missouri, New Mexico, Ohio, South Carolina and others have no standard LLC annual report in this snapshot.
Publication can add material newspaper cost and timing friction, especially in New York.
These states are marked as more privacy-friendly in the dataset, but privacy rules do not remove bank, tax or ownership-record obligations.
These states can still be right if you operate there, but they are rarely “cheap default” choices for remote non-resident founders.
No state sales tax can simplify some local obligations, but it does not remove sales-tax nexus in other states where you sell, store inventory or operate.
No state income tax is useful context, but federal tax classification, effectively connected income and where the business operates still drive the real tax analysis.
These rows include common April, May, June or year-end reminders. Add reminders immediately after formation to avoid penalties or administrative dissolution.
State-by-state compliance matrix
Research snapshot last checked 2026-07-21. Use this as a shortlist tool, then verify the state page and official registry before filing or relying on a deadline.
| State | Estimated annual state fee | Annual / biennial report | Franchise or special tax | Publication | Anonymous / privacy signal | Sales-tax nexus | State guide |
|---|---|---|---|---|---|---|---|
| AlabamaAL · filing fee $200 | $50 | Business Privilege Tax return (min $50), ~April 15 | Business Privilege Tax (min $50) | No | No | $250,000 | Open guide → |
| AlaskaAK · filing fee $250 | $50 | Biennial report ($100), due January 2 | None | No | No | $100,000 (local) | Open guide → |
| ArizonaAZ · filing fee $50 | $0 | No annual report | None | Yes | No | $100,000 | Open guide → |
| ArkansasAR · filing fee $45 | $150 | Franchise tax report ($150), due May 1 | Annual franchise tax $150 | No | No | $100,000 or 200 transactions | Open guide → |
| CaliforniaCA · filing fee $70 | $820 | Statement of Information ($20), within 90 days then biennial | $800 minimum LLC tax + gross-receipts fee, ~April 15 | No | No | $500,000 | Open guide → |
| ColoradoCO · filing fee $50 | $25 | Periodic Report ($25), anniversary month | None | No | No | $100,000 | Open guide → |
| ConnecticutCT · filing fee $120 | $80 | Annual report ($80), anniversary month | None | No | No | $100,000 and 200 transactions | Open guide → |
| DelawareDE · filing fee $110 | $300 | No annual report | $300 flat annual LLC tax, due June 1 | No | Yes | n/a (no sales tax) | Open guide → |
| FloridaFL · filing fee $125 | $138.75 | Annual report ($138.75), due May 1 | None | No | No | $100,000 | Open guide → |
| GeorgiaGA · filing fee $110 | $60 | Annual registration ($60 total incl. service charge), due April 1 | None | No | No | $100,000 or 200 transactions | Open guide → |
| HawaiiHI · filing fee $50 | $15 | Annual report ($15), anniversary quarter | None | No | No | $100,000 or 200 transactions | Open guide → |
| IdahoID · filing fee $100 | $0 | Annual report (free), anniversary month | None | No | No | $100,000 | Open guide → |
| IllinoisIL · filing fee $150 | $75 | Annual report ($75), anniversary month | None | No | No | $100,000 (transaction count repealed 2026) | Open guide → |
| IndianaIN · filing fee $95 | $16 | Biennial report ($32 online), anniversary month | None | No | No | $100,000 | Open guide → |
| IowaIA · filing fee $50 | $15 | Biennial report ($30), by April 1 in odd years | None | No | No | $100,000 | Open guide → |
| KansasKS · filing fee $85 | $50 | Annual report ($50), 15th day of 4th month | None | No | No | $100,000 | Open guide → |
| KentuckyKY · filing fee $40 | $15 | Annual report ($15), due June 30 | None | No | No | $100,000 (transaction count phasing out 2026) | Open guide → |
| LouisianaLA · filing fee $100 | $30 | Annual report ($30), anniversary date | None | No | No | $100,000 | Open guide → |
| MaineME · filing fee $175 | $85 | Annual report ($85), due June 1 | None | No | No | $100,000 | Open guide → |
| MarylandMD · filing fee $100 | $300 | Annual report ($300), due April 15 | None | No | No | $100,000 or 200 transactions | Open guide → |
| MassachusettsMA · filing fee $500 | $500 | Annual report ($500), anniversary date | None | No | No | $100,000 | Open guide → |
| MichiganMI · filing fee $50 | $25 | Annual report ($25), due February 15 | None | No | No | $100,000 | Open guide → |
| MinnesotaMN · filing fee $155 | $0 | Annual renewal (free), due December 31 | None | No | No | $100,000 or 200 transactions | Open guide → |
| MississippiMS · filing fee $50 | $0 | Annual report (free), due April 15 | None | No | No | $250,000 | Open guide → |
| MissouriMO · filing fee $50 | $0 | No annual report | None | No | No | $100,000 | Open guide → |
| MontanaMT · filing fee $35 | $20 | Annual report ($20), due April 15 | None | No | No | n/a (no sales tax) | Open guide → |
| NebraskaNE · filing fee $100 | $6.5 | Biennial report ($13), by April 1 in odd years | None | Yes | No | $100,000 or 200 transactions | Open guide → |
| NevadaNV · filing fee $425 | $350 | Annual list + $200 state business license ($350 total), anniversary month | State Business License $200/yr | No | Yes | $100,000 or 200 transactions | Open guide → |
| New HampshireNH · filing fee $100 | $100 | Annual report ($100), due April 1 | Business Profits Tax / Business Enterprise Tax if thresholds met | No | No | n/a (no sales tax) | Open guide → |
| New JerseyNJ · filing fee $125 | $75 | Annual report ($75), anniversary month | None | No | No | $100,000 or 200 transactions | Open guide → |
| New MexicoNM · filing fee $50 | $0 | No annual report | None | No | Yes | $100,000 | Open guide → |
| New YorkNY · filing fee $200 | $4.5 | Biennial statement ($9), anniversary month | None | Yes | No | $500,000 and 100 transactions | Open guide → |
| North CarolinaNC · filing fee $125 | $200 | Annual report ($200), due April 15 | None (franchise tax is corporation-only) | No | No | $100,000 or 200 transactions | Open guide → |
| North DakotaND · filing fee $135 | $50 | Annual report ($50), due November 15 | None | No | No | $100,000 | Open guide → |
| OhioOH · filing fee $99 | $0 | No annual report | None (Commercial Activity Tax above $3M gross receipts) | No | No | $100,000 or 200 transactions | Open guide → |
| OklahomaOK · filing fee $100 | $25 | Annual certificate ($25), anniversary date | None (franchise tax repealed) | No | No | $100,000 | Open guide → |
| OregonOR · filing fee $100 | $100 | Annual report ($100), anniversary date | None (Corporate Activity Tax above $1M) | No | No | n/a (no sales tax) | Open guide → |
| PennsylvaniaPA · filing fee $125 | $7 | Annual report ($7), due September 30 | None | No | No | $100,000 | Open guide → |
| Rhode IslandRI · filing fee $150 | $50 | Annual report ($50), filed in the Feb-May window | Annual minimum tax (historically ~$400 - verify current figure) | No | No | $100,000 or 200 transactions | Open guide → |
| South CarolinaSC · filing fee $110 | $0 | No annual report (unless taxed as a corporation) | None | No | No | $100,000 | Open guide → |
| South DakotaSD · filing fee $150 | $50 | Annual report ($50), anniversary month | None | No | No | $100,000 | Open guide → |
| TennesseeTN · filing fee $300 | $400 | Annual report (min $300), 1st day of 4th month after fiscal year end | Franchise & Excise Tax (min franchise $100) | No | No | $100,000 | Open guide → |
| TexasTX · filing fee $300 | $0 | Public Information Report (no fee), due May 15 | Franchise tax; no tax due below $2.65M revenue (2026) | No | No | $500,000 | Open guide → |
| UtahUT · filing fee $59 | $18 | Annual report ($18), anniversary month | None | No | No | $100,000 | Open guide → |
| VermontVT · filing fee $155 | $45 | Annual report ($45), within 3 months of fiscal year end | None | No | No | $100,000 or 200 transactions | Open guide → |
| VirginiaVA · filing fee $100 | $50 | Annual registration fee ($50), anniversary month | None | No | No | $100,000 or 200 transactions | Open guide → |
| WashingtonWA · filing fee $200 | $70 | Annual report ($70), anniversary month | None (B&O gross-receipts tax applies) | No | No | $100,000 | Open guide → |
| West VirginiaWV · filing fee $100 | $25 | Annual report ($25), due July 1 | None | No | No | $100,000 or 200 transactions | Open guide → |
| WisconsinWI · filing fee $130 | $25 | Annual report ($25), anniversary quarter end | None | No | No | $100,000 | Open guide → |
| WyomingWY · filing fee $100 | $60 | Annual report (min $60 license tax), 1st day of anniversary month | Annual license tax (min $60, asset-based) | No | Yes | $100,000 | Open guide → |
| District of ColumbiaDC · filing fee $99 | $150 | Biennial report ($300), due April 1 | Unincorporated Business Franchise Tax if net income is high | No | No | $100,000 or 200 transactions | Open guide → |
Founder routing: what the matrix should decide
The matrix is not telling every founder to choose the cheapest state. It is meant to separate four decisions that often get mixed together: where to form, where the company operates, where it may owe sales tax, and which provider or bank can actually support the founder.
| Founder situation | Main compliance risk | Practical route | Next step |
|---|---|---|---|
| Non-resident founder with no US office, employees or physical operations | Recurring state cost, registered-agent reliability, bank/payment eligibility and federal tax filings matter more than filing in a famous state. | Shortlist Wyoming, New Mexico, Delaware and a few low-fee states, then validate banking and Form 5472 needs before filing. | Run Founder Path → |
| Founder actually operating from California, New York, Texas or another state | A cheap out-of-state LLC may still need foreign qualification, local tax registration, licenses and sales-tax setup where activity happens. | Compare home-state compliance against foreign qualification before using a low-fee formation state. | Compare state costs → |
| Ecommerce, Amazon FBA or SaaS selling across states | State formation is separate from sales-tax nexus. Inventory, marketplaces, revenue thresholds and transaction rules can create tax duties elsewhere. | Use the matrix for entity upkeep, then check sales-tax and payment-provider evidence requirements separately. | Review sales-tax guidance → |
| Founder comparing Firstbase, doola or direct filing | Formation price is only one line item. Renewal fees, registered-agent renewal, EIN support, bank introductions and compliance handoff affect year-one cost. | Use a formation provider when the bundle reduces banking, EIN or compliance risk; direct-file only when you can manage the follow-up work. | Compare provider costs → |
Compliance traps this matrix is designed to prevent
Most founder mistakes happen after formation, not during the filing itself. A state can look cheap on day one but create avoidable work through report deadlines, publication rules, foreign qualification, payment-provider evidence requests or tax filings the founder did not budget for.
The matrix shows recurring state fees where the data is clear, but founders may still pay registered-agent renewal, address/mail handling, bookkeeping, federal tax filings, licenses and provider renewal costs.
A state can have no LLC annual report while the owner still needs federal tax filings, Form 5472/1120 pro forma, partnership returns, sales-tax registration or home-country reporting.
Wyoming, Delaware, Nevada and New Mexico may reduce public owner exposure, but banks, payment processors, registered agents and tax filings can still require beneficial-owner information.
Arizona, Nebraska and New York require publication in the current dataset. For a remote founder, this can add delay, administrative work and newspaper costs before the company feels fully ready.
No state sales tax in the formation state does not remove nexus in customer, inventory, marketplace or operating states. Treat sales-tax registration as a separate operating question.
How to use this before choosing a state
Start with the annual fee, report deadline and publication requirement. Then check whether you have any real operating connection to another state, because forming in a cheap state does not avoid foreign qualification, sales tax or local licensing where the business actually operates.
- Choose the state only after you know where the founder, customers, inventory, employees and contractors are located.
- Check the annual or biennial report, franchise tax, publication and sales-tax nexus row for that state.
- Open the state guide and official registry before filing, because deadlines and fees can change.
- Save the formation date, registered-agent renewal date, annual report date and federal tax dates in the compliance calendar.
- Keep a compliance folder with formation certificate, operating agreement, EIN letter, bank evidence, invoices, owner transfers and annual report receipts.
- Review the state choice again before hiring US workers, storing inventory, opening a physical location or crossing major sales thresholds.
- Build compliance reminders after choosing a state and formation date.
- Compare cheapest LLC states for a cost-ranked view.
- Run Founder Path if you are still deciding between US LLC, Delaware C-corp, UK Ltd or another route.
Where Firstbase, doola and direct filing fit
For monetization, the right recommendation is not simply “use a provider.” A provider is more useful when the founder needs a cleaner handoff across formation, EIN, registered agent, operating agreement, banking preparation and compliance reminders. Direct filing is more defensible when the founder already understands the deadline, tax and banking consequences.
Use a formation provider when
The founder wants a bundled workflow, is unsure about EIN or banking evidence, needs reminders, or would likely miss follow-up filings after state approval.
Consider direct filing when
The founder has already selected a state, understands registered-agent renewal, can prepare Form SS-4/EIN steps, and has separate tax and banking support.
Pause before filing when
The founder depends on Stripe, Mercury, Wise, Payoneer or marketplace payouts and has not checked country eligibility, address evidence or tax documentation needs.