States With No LLC Annual Report (2026 List)

Most business owners are shocked to learn that forming an LLC is not a one-time fee. In most states, you are forced to pay a recurring "subscription fee" called an Annual Report just to keep your company alive. But a few states refuse to play this game.

Updated May 2026 • 8 min read

Quick Answer

There are exactly 6 states that do not charge a recurring annual report fee for LLCs: Arizona, Idaho, New Mexico, Ohio, South Carolina, and Texas. In these states, once you pay the initial formation fee, you pay the state $0 a year to maintain the LLC entity itself.

Key Points for 2026

The Norm: 44 out of 50 states charge an annual fee ranging from $10 (Colorado) to $800 (California).
The Catch: Some states have no "Annual Report" but still require annual tax filings (like Texas).
Registered Agent Fees: Even in a state with no annual report, you still have to pay your Registered Agent every year.

The 6 Zero-Fee States

1. New Mexico (The Best Overall)

New Mexico is the holy grail of cheap LLCs. It costs $50 to start. There is no annual report. There is no annual fee. There is no franchise tax. And it offers completely anonymous LLCs. It is the best state for non-US residents and digital nomads.

2. Ohio

Ohio costs $99 to start. There is no annual report and no annual fee. However, Ohio does not offer anonymous LLCs.

3. South Carolina

South Carolina costs $110 to start. There is no annual report required to be filed with the Secretary of State, meaning $0 ongoing maintenance fees at the entity level.

4. Arizona

Arizona costs $50 to start and has no annual report. However, Arizona has an archaic "Publication Requirement." You must pay to publish your LLC formation in an Arizona newspaper, which usually costs $60-$100.

5. Idaho

Idaho is unique. It costs $100 to start. You do have to file an annual report every year to keep your information up to date, but the state charges $0 to file it.

6. Texas

Texas costs $300 to start. There is no standard "Annual Report" with the Secretary of State. However, Texas requires you to file a Public Information Report and a Franchise Tax Report every year with the Comptroller. If your revenue is under $2.47M, the tax is $0, but you still must do the paperwork.

The Foreign LLC Rule

If you live in California and form an LLC in New Mexico because you want to avoid California's $800 annual fee, it will not work. California law dictates that because you are managing the business from within California borders, you must register the New Mexico LLC in California and pay the $800 fee anyway.

What to Do Next

Local Businesses: You must form in your home state. If your home state charges an annual fee, budget for it. Check your state's due dates here.
Online Businesses: If you do not have a physical nexus in the US, form your LLC in New Mexico for the lowest possible cost of ownership.

Annual Report FAQs

Do I have to file an annual report for my LLC?

In 44 out of 50 states, yes. You must file an annual (or biennial) report and pay a fee to keep your LLC active. If you don't, the state will dissolve your LLC.

Which states have absolutely no annual report?

Arizona, Idaho, New Mexico, Ohio, South Carolina, and Texas have no standard annual report fee for LLCs. However, Texas requires a Public Information Report and Franchise Tax report (even if the fee is $0).

Is there a penalty for missing an annual report?

Yes, and they can be severe. Florida charges a $400 late fee. Illinois charges a $100 penalty. Eventually, the state will forcefully shut down ('Administratively Dissolve') your company.

Can I form my LLC in Ohio just to avoid the annual report?

If you live in Ohio, yes. If you live in a different state (like New York) but form an Ohio LLC, you must register the Ohio LLC as a foreign entity in New York, and you will have to pay the New York annual fees anyway.