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Meaning

Minimum LLC tax: the term

A flat yearly tax in a few states, owed by an LLC whether or not it earned anything. Billing is separate from the report fee, and it recurs while the LLC stays registered in that state.
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Facts

Also
Franchise tax, entity tax
See also
Annual report before moving to Articles of organization before moving to Member

What to do

A tax that ignores earnings surprises new owners. When comparing states, count it as a fixed cost of staying.

To end the tax, dissolve the LLC through the state and get written confirmation. Ceasing business is not enough.

States differ

Below are the 3 states with a minimum tax. Some tie the amount to the kind of LLC, some to revenue, some use a flat figure. The due date may differ from the annual report's.

  • 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.

Related pages

See: Forming an LLC, by state, Agent law, by state, Registering in a second state, by state.

Sources

  1. Charter Simple keeps California other cost: Annual LLC on file from ftb.ca.gov, confirmed October 2026, and nothing more
  2. Charter Simple keeps California other cost: Annual LLC on file from ftb.ca.gov, confirmed October 2026, and nothing more
  3. Charter Simple keeps Kentucky other cost: Limited Liability on file from revenue.ky.gov, confirmed October 2026, and nothing more
  4. Charter Simple keeps Rhode Island other cost on file from tax.ri.gov, confirmed October 2026, and nothing more