Minimum LLC tax, defined

The practical point

Profit or loss, you owe it. New owners are often caught off guard because they expect a tax to rise and fall with earnings. Count it as a fixed cost of staying registered in that state and compare it before choosing where to form.

How do you find the amount? Read your state's entry below, since it states the figure or the formula in the state's own words. How do you know when it is due? The entry gives that too, and the date can differ from the report's.

How it varies

Do you owe it? Only if your LLC is in one of the 3 states below. For a company with little or no income, this tax is the main reason some owners form somewhere else, so compare before you file.

• California: $800 a year minimum LLC tax to the Franchise Tax Board (Form FTB 3522), separate from the Statement of Information.
• Kentucky: Limited Liability Entity Tax: a $175 minimum each year to the Department of Revenue.
• Rhode Island: $400 a year minimum tax to the Division of Taxation (Form RI-1065), owed whether or not the LLC makes a profit.

Read next

Used in: LLC formation questions by state, Registered agent questions by state, Out-of-state LLC questions by state.