Checked · five terms
LLC glossary: five terms every LLC owner runs into
Five words that show up on state notices and formation checkouts. Each entry gives the definition, the money involved, the slips owners make and the page that answers the next question.
Jump to: registered agent · franchise tax · annual report · BOI · foreign qualification
What is a registered agent?
A registered agent is the person or company an LLC names to receive lawsuits and official state mail on its behalf, at an address in the state. State LLC laws require one. Delaware's law says each LLC “shall have and maintain” a registered agent whose business office is the LLC's registered office in Delaware. Under that law the agent may be the LLC itself or an individual resident of Delaware, among other options.
What it costs. Nothing if you serve as your own agent. Commercial agents on our Wyoming ranking charged $25 to $249 a year, and on our Delaware ranking $49 to $249 a year, when checked October 23 and October 26, 2026.
Common mistakes
- Naming an agent without an office in the state. Delaware requires the agent's business office to be identical with the registered office in Delaware.
- Forgetting that paid agent service renews by itself. LegalZoom's agent auto-renews each year at the purchase rate, and Rocket Lawyer's renews in one-year terms unless you opt out.
Next step: Cheapest registered agent for a Wyoming LLC · for a Delaware LLC · LegalZoom alternatives
What is franchise tax?
Franchise tax is a state tax charged to a company for being formed in, or doing business in, that state. Texas describes its version as “a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.” The name covers different things. California and Delaware charge LLCs a flat yearly amount, Tennessee bases it on net worth, and Texas charges nothing at or below a revenue threshold.
What it costs, and when it's due
- California: $800 annual LLC tax, due the 15th day of the 4th month of each tax year (April 15 for calendar-year LLCs); the first year's is due the 15th day of the 4th month after filing with the Secretary of State. For a first taxable year starting in 2027, 2028 or 2029, SB 122 sets that first year at $400.
- Delaware: $400 annual LLC tax, due June 1 for the prior year. Late: a $200 penalty plus 1.5% interest per month on tax and penalty.
- Tennessee: franchise tax of 0.25% of Tennessee net worth with a $100 minimum, due April 15 for calendar-year LLCs.
- Texas: no tax is due at or below $2,650,000 in revenue for 2026 and 2027 reports. Reports are due May 15.
- Alabama: the Business Privilege Tax varies with net worth, and an LLC owing $100 or less has no filing requirement. Returns are due March 15 for calendar-year LLCs.
Common mistakes
- Treating an idle LLC as exempt. Tennessee's franchise tax is owed even if the LLC is inactive.
- Skipping the Texas filing because no tax is due. The Comptroller says an entity at or below the threshold still files its Public Information Report or Ownership Report.
- Expecting a Delaware annual report. Delaware LLCs file none and pay the annual tax instead.
Next step: California LLC cost · Delaware · Texas · Tennessee · Alabama · LLC cost index
What is an LLC annual report?
An annual report is a recurring state filing that keeps the state's record of an LLC current, such as its addresses and registered agent. Names vary: Statement of Information, Periodic Report, Business Entity Report. Not every state asks for one each year.
What it costs, and when it's due. Of the 51 jurisdictions we track, 37 require a yearly report, 8 a report every two years, and 6 none. Report fees run from $0 to $500. Deadlines follow one of two main patterns. In 26 jurisdictions the date is fixed on the calendar. Most of the rest tie it to the month or date the LLC was formed.
Common mistakes
- Missing a biennial year. California's Statement of Information is due every two years, and missing it brings a $250 penalty.
- Filing late in Texas. Each late report carries a $50 penalty.
- Ignoring the notice altogether. In Tennessee an LLC that doesn't file may be administratively dissolved, and reinstating costs $70.
Next step: How to file your LLC annual report · LLC deadline calculator · Fees for all 50 states and DC
What is BOI (beneficial ownership information)?
BOI is information about the people who own or control a company, reported to FinCEN (the Financial Crimes Enforcement Network). FinCEN issued a final rule on August 11, 2026, effective August 14, 2026. Under it, FinCEN's BOI page says, U.S. companies are exempt and “no longer required to file BOI reports.” FinCEN says foreign companies that are reporting companies still report, but not for U.S. persons.
What it costs, and when it's due. FinCEN says “There is NO fee to file BOI directly with FinCEN” and that it does not send correspondence requesting payment. For U.S. LLCs there is no BOI filing due, per that page.
Common mistakes
- Working from 2024 guidance. FinCEN's interim final rule, published March 26, 2025, first introduced the exemptions, and the August 2026 final rule made them permanent.
- Updating an old filing. FinCEN says U.S. persons with a FinCEN ID are not required to update or correct what they previously submitted.
Next step: FinCEN's own BOI page is the place to check. We don't have a separate BOI page, because the rule is federal and FinCEN publishes it directly.
What is foreign qualification?
Foreign qualification is registering an existing LLC with another state so it can legally do business there. “Foreign” here means formed in a different state, not a different country. The second state then treats the LLC as one of its own filers.
What it costs, and when it's due. State fees to register a foreign LLC run from $50 in Hawaii and Michigan to $750 in South Dakota and Texas. The fee is paid once, but the second state's yearly filings can follow. Texas, for example, imposes its franchise tax on entities doing business in Texas, not only those formed there.
Common mistakes
- Counting only the home state's annual fee. A qualified LLC can owe reports or taxes in both states.
- Forgetting a registered agent in the second state. Delaware, for example, asks a foreign LLC's registration for the name and address of its registered agent in Delaware (§ 18-902).
Next step: foreign registration fees on each state page · LLC cost index
Quick questions
Is franchise tax the same as income tax?
No. California's $800 and Delaware's $400 are flat yearly amounts, not a share of profit. Texas charges nothing at or below a revenue threshold, and Tennessee's is 0.25% of net worth with a $100 minimum.
Does a U.S. LLC still file a BOI report?
Not according to FinCEN's BOI page on October 29, 2026: under its final rule, U.S. companies are exempt and no longer required to file BOI reports.
Do all states require an annual report?
No. Of the 51 jurisdictions we track, 6 have no recurring report and 8 ask for one every two years.
Sources
- Delaware Code, Title 6, § 18-104 (registered office and registered agent)
- Delaware Code, Title 6, § 18-902 (foreign LLC registration)
- Texas Comptroller: franchise tax
- FinCEN: Beneficial Ownership Information Reporting
- FinCEN press release, August 11, 2026: final BOI rule
- Federal Register, 91 FR 52508 (August 14, 2026): BOI reporting requirement revision
Checked October 29, 2026. State fees, deadlines and penalties come from our state pages, checked against official state sources: see how we verify data. Spot something out of date? Email team@llcannualfees.com. This page is general information, not legal or tax advice.