States With No LLC Franchise Tax in 2026 (Full List, Ranked)

The 42 states with no LLC franchise tax (ranked by 5-year cost)

1. #1

   Montana

   $0/yr franchise tax · $35 filing · $0/annual report · $35 5-year total

   Montana is the cheapest no-franchise-tax state in 2026 with a 35-dollar one-time filing fee and no annual report fee at all. Total 5-year ownership cost: $35.

   Note: Montana does not impose a general franchise tax on LLCs. LLCs are typically treated as pass-through entities for tax purposes. A corporate license tax with a $50 minimum applies only to C corporations or LLCs that elect corporate tax status.

   Source: biz.sosmt.gov · verified 2026-05-02

2. #2

   Arizona

   $0/yr franchise tax · $50 filing · $0/never report · $50 5-year total

   Arizona maintains the no-franchise-tax structure with a $50 filing fee and $0/none report. The full 5-year cost stays under $50.

   Note: No annual report, no franchise tax.

   Source: azcc.gov · verified 2026-05-14

3. #3

   Mississippi

   $0/yr franchise tax · $50 filing · $0/annual report · $50 5-year total

   Mississippi maintains the no-franchise-tax structure with a $50 filing fee and $0/annual report. The full 5-year cost stays under $50.

   Note: Mississippi does not impose a franchise tax on LLCs unless the LLC elects to be taxed as a corporation. For LLCs taxed as corporations, the minimum franchise tax is $25, calculated at $2.50 per $1,000 of capital employed or assessed property values, whichever is greater.

   Source: www.sos.ms.gov · verified 2026-05-02

4. #4

   Missouri

   $0/yr franchise tax · $50 filing · $0/never report · $50 5-year total

   Missouri maintains the no-franchise-tax structure with a $50 filing fee and $0/none report. The full 5-year cost stays under $50.

   Note: Missouri eliminated its corporate franchise tax in January 2016. Limited Liability Companies (LLCs), partnerships, and sole proprietorships were never subject to Missouri's franchise tax, even before its repeal.

   Source: www.sos.mo.gov · verified 2026-05-02

5. #5

   New Mexico

   $0/yr franchise tax · $50 filing · $0/never report · $50 5-year total

   New Mexico maintains the no-franchise-tax structure with a $50 filing fee and $0/none report. The full 5-year cost stays under $50.

   Note: No annual report, no franchise tax.

   Source: www.sos.nm.gov · verified 2026-05-02

6. #6

   Ohio

   $0/yr franchise tax · $99 filing · $0/never report · $99 5-year total

   Ohio also charges no franchise tax. Filing fee is $99 with $0/none reports. Use it if you have a genuine in-state presence.

   Note: Commercial Activity Tax kicks in at $150,000 gross receipts (rate 0.26%); pass-through LLCs below that owe $0.

   Source: www.ohiosos.gov · verified 2026-04-28

7. #7

   Idaho

   $0/yr franchise tax · $100 filing · $0/annual report · $100 5-year total

   Idaho also charges no franchise tax. Filing fee is $100 with $0/annual reports. Use it if you have a genuine in-state presence.

   Note: Idaho does not impose a franchise tax on LLCs. While there is a 'franchise tax' mentioned in some contexts, it applies only to corporations and is calculated like a traditional income tax, not a separate LLC franchise tax.

   Source: sosbiz.idaho.gov · verified 2026-05-15

8. #8

   Iowa

   $0/yr franchise tax · $50 filing · $30/biennial report · $110 5-year total

   Iowa also charges no franchise tax. Filing fee is $50 with $30/biennial reports. Use it if you have a genuine in-state presence.

   Note: Iowa does not impose a state-level franchise tax on LLCs. The franchise tax in Iowa applies only to financial institutions like banks, credit unions, and savings and loan associations.

   Source: sos.iowa.gov · verified 2026-05-15

9. #9

   South Carolina

   $0/yr franchise tax · $110 filing · $0/never report · $110 5-year total

   South Carolina also charges no franchise tax. Filing fee is $110 with $0/none reports. Use it if you have a genuine in-state presence.

   Note: South Carolina does not impose a franchise tax on Limited Liability Companies. However, LLCs electing to be taxed as C-corporations or S-corporations are subject to an annual corporate license fee of 0.1% of capital and paid-in surplus, plus $15, with a minimum fee of $25. This fee is paid with Form SC1120.

   Source: sos.sc.gov · verified 2026-04-28

10. #10

    Hawaii

    $0/yr franchise tax · $51 filing · $13.5/annual report · $118.5 5-year total

    Hawaii also charges no franchise tax. Filing fee is $51 with $13.5/annual reports. Use it if you have a genuine in-state presence.

    Note: Unlike many states that impose a general franchise tax on businesses, Hawaii reserves its franchise tax specifically for certain financial institutions. Regular commercial entities, including LLCs, are exempt from franchise tax. They are subject to the General Excise Tax (GET) on gross receipts and, for corporations, the state income tax.

    Source: cca.hawaii.gov · verified 2026-05-15

11. #11

    Utah

    $0/yr franchise tax · $59 filing · $18/annual report · $149 5-year total

    Utah also charges no franchise tax. Filing fee is $59 with $18/annual reports. Use it if you have a genuine in-state presence.

    Note: Utah LLCs are generally treated as pass-through entities and are not subject to a state franchise tax. If an LLC elects to be taxed as a corporation, it would be subject to the corporate income/franchise tax, which has a minimum of $100.

    Source: corporations.utah.gov · verified 2026-05-02

12. #12

    Michigan

    $0/yr franchise tax · $50 filing · $25/annual report · $150 5-year total

    Michigan also charges no franchise tax. Filing fee is $50 with $25/annual reports. Use it if you have a genuine in-state presence.

    Note: Michigan does not impose a franchise tax on LLCs. LLCs are generally treated as pass-through entities for tax purposes. Financial institutions are subject to a different franchise tax based on net capital.

    Source: www.michigan.gov · verified 2026-05-02

13. #13

    Pennsylvania

    $0/yr franchise tax · $125 filing · $7/decennial report · $153 5-year total

    Pennsylvania also charges no franchise tax. Filing fee is $125 with $7/decennial reports. Use it if you have a genuine in-state presence.

    Note: Decennial report $70 every 10 years (annualized $7/yr in calculator).

    Source: www.dos.pa.gov · verified 2026-05-02

14. #14

    Minnesota

    $0/yr franchise tax · $155 filing · $0/annual report · $155 5-year total

    Minnesota also charges no franchise tax. Filing fee is $155 with $0/annual reports. Use it if you have a genuine in-state presence.

    Note: Minnesota imposes a corporate franchise tax on C corporations (and LLCs electing C-corp status) at a flat 9.8% of taxable income. Pass-through entities (including most LLCs) are generally exempt from this tax. However, most entities, including LLCs, are subject to a minimum fee ranging from $250 to $12,200 if their Minnesota property, payroll, and sales exceed a certain threshold (e.g., $1,220,000). This minimum fee applies even if there is no taxable income or corporate franchise tax liability.

    Source: www.sos.state.mn.us · verified 2026-05-02

15. #15

    Nebraska

    $0/yr franchise tax · $100 filing · $28/biennial report · $156 5-year total

    Nebraska also charges no franchise tax. Filing fee is $100 with $28/biennial reports. Use it if you have a genuine in-state presence.

    Note: Nebraska does not impose a franchise tax on LLCs. LLCs are exempt from this tax unless they elect to be taxed as a corporation.

    Source: sos.nebraska.gov · verified 2026-05-02

16. #16

    Indiana

    $0/yr franchise tax · $95 filing · $32/biennial report · $159 5-year total

    Indiana also charges no franchise tax. Filing fee is $95 with $32/biennial reports. Use it if you have a genuine in-state presence.

    Note: Indiana does not impose a franchise tax on standard LLCs. LLCs are typically pass-through entities for tax purposes.

    Source: www.in.gov · verified 2026-05-15

17. #17

    Colorado

    $0/yr franchise tax · $50 filing · $25/annual report · $175 5-year total

    Colorado also charges no franchise tax. Filing fee is $50 with $25/annual reports. Use it if you have a genuine in-state presence.

    Note: Flat 4.4% personal income tax on pass-through earnings.

    Source: www.coloradosos.gov · verified 2026-05-14

18. #18

    Kansas

    $0/yr franchise tax · $85 filing · $50/biennial report · $185 5-year total

    Kansas also charges no franchise tax. Filing fee is $85 with $50/biennial reports. Use it if you have a genuine in-state presence.

    Note: Kansas eliminated its franchise tax effective tax year 2011. No franchise tax is currently imposed on LLCs.

    Source: www.sos.ks.gov · verified 2026-05-15

19. #19

    West Virginia

    $0/yr franchise tax · $100 filing · $25/annual report · $200 5-year total

    West Virginia also charges no franchise tax. Filing fee is $100 with $25/annual reports. Use it if you have a genuine in-state presence.

    Note: West Virginia does not impose a franchise tax on LLCs. The state's Business Franchise Tax was eliminated for tax years starting after January 1, 2015.

    Source: business4wv.gov · verified 2026-04-28

20. #20

    New York

    $0/yr franchise tax · $200 filing · $9/biennial report · $218 5-year total

    New York also charges no franchise tax. Filing fee is $200 with $9/biennial reports. Use it if you have a genuine in-state presence.

    Note: Annual filing fee (Article 9-A) ranges $25-$4,500 for partnerships only; SMLLC disregarded entities exempt.

    Source: dos.ny.gov · verified 2026-05-02

21. #21

    Oklahoma

    $0/yr franchise tax · $104 filing · $25/annual report · $229 5-year total

    Oklahoma also charges no franchise tax. Filing fee is $104 with $25/annual reports. Use it if you have a genuine in-state presence.

    Note: Oklahoma's franchise tax was repealed for tax year 2023 and beyond. LLCs are exempt from franchise tax. The franchise tax previously applied to corporations at a rate of $1.25 per $1,000 of capital employed in Oklahoma, with a maximum of $20,000.

    Source: www.sos.ok.gov · verified 2026-05-02

22. #22

    Louisiana

    $0/yr franchise tax · $100 filing · $30/annual report · $250 5-year total

    Louisiana also charges no franchise tax. Filing fee is $100 with $30/annual reports. Use it if you have a genuine in-state presence.

    Note: Louisiana is repealing its corporation franchise tax for franchise tax periods beginning on or after January 1, 2026. LLCs are generally treated as pass-through entities and are not subject to franchise tax unless they elect to be taxed as a corporation.

    Source: www.sos.la.gov · verified 2026-05-15

23. #23

    Wisconsin

    $0/yr franchise tax · $130 filing · $25/annual report · $255 5-year total

    Wisconsin also charges no franchise tax. Filing fee is $130 with $25/annual reports. Use it if you have a genuine in-state presence.

    Note: Wisconsin LLCs are pass-through entities by default and do not pay a separate franchise tax. If an LLC elects to be taxed as a C corporation, it will be subject to the corporate franchise tax.

    Source: dfi.wi.gov · verified 2026-05-02

24. #24

    Texas

    $0/yr franchise tax · $300 filing · $0/annual-info-only report · $300 5-year total

    Texas also charges no franchise tax. Filing fee is $300 with $0/annual-info-only reports. Use it if you have a genuine in-state presence.

    Note: No-tax-due threshold $1.23M; below that you file an info-only report and pay nothing.

    Source: www.sos.state.tx.us · verified 2026-05-02

25. #25

    Georgia

    $0/yr franchise tax · $100 filing · $50/annual report · $350 5-year total

    Georgia also charges no franchise tax. Filing fee is $100 with $50/annual reports. Use it if you have a genuine in-state presence.

    Note: Net worth tax $10-$5,000 sliding for LLCs taxed as corps; pass-through LLCs exempt.

    Source: sos.ga.gov · verified 2026-04-28

26. #26

    Virginia

    $0/yr franchise tax · $100 filing · $50/annual report · $350 5-year total

    Virginia also charges no franchise tax. Filing fee is $100 with $50/annual reports. Use it if you have a genuine in-state presence.

    Note: No franchise tax for LLCs.

    Source: www.scc.virginia.gov · verified 2026-05-02

27. #27

    North Dakota

    $0/yr franchise tax · $135 filing · $50/annual report · $385 5-year total

    North Dakota also charges no franchise tax. Filing fee is $135 with $50/annual reports. Use it if you have a genuine in-state presence.

    Note: North Dakota does not impose a franchise tax on LLCs. LLCs are generally taxed as pass-through entities, with income taxed on members' individual returns.

    Source: sos.nd.gov · verified 2026-05-02

28. #28

    Wyoming

    $0/yr franchise tax · $100 filing · $60/annual report · $400 5-year total

    Wyoming also charges no franchise tax. Filing fee is $100 with $60/annual reports. Use it if you have a genuine in-state presence.

    Note: No state income tax; annual report minimum $60 or 0.0002% of WY-asset value (whichever greater).

    Source: sos.wyo.gov · verified 2026-05-02

29. #29

    South Dakota

    $0/yr franchise tax · $150 filing · $55/annual report · $425 5-year total

    South Dakota also charges no franchise tax. Filing fee is $150 with $55/annual reports. Use it if you have a genuine in-state presence.

    Note: South Dakota does not impose a general corporate income tax or franchise tax on LLCs. A franchise tax applies only to financial institutions based on net income.

    Source: sdsos.gov · verified 2026-05-02

30. #30

    Alaska

    $0/yr franchise tax · $250 filing · $100/biennial report · $450 5-year total

    Alaska also charges no franchise tax. Filing fee is $250 with $100/biennial reports. Use it if you have a genuine in-state presence.

    Note: Alaska does not have a state-level franchise or privilege tax. Businesses are not subject to annual franchise tax fees. The state primarily funds itself through corporate income tax, which applies only when a business is making a profit.

    Source: www.commerce.alaska.gov · verified 2026-05-14

31. #31

    Washington

    $0/yr franchise tax · $180 filing · $60/annual report · $480 5-year total

    Washington also charges no franchise tax. Filing fee is $180 with $60/annual reports. Use it if you have a genuine in-state presence.

    Note: Business and Occupation Tax 0.471/0.484/1.5% on retail/wholesale/services gross.

    Source: sos.wa.gov · verified 2026-05-02

32. #32

    New Hampshire

    $0/yr franchise tax · $102 filing · $102/annual report · $510 5-year total

    New Hampshire also charges no franchise tax. Filing fee is $102 with $102/annual reports. Use it if you have a genuine in-state presence.

    Note: New Hampshire does not impose a traditional franchise tax. Instead, LLCs may be subject to the Business Enterprise Tax (BET) and the Business Profits Tax (BPT) if certain revenue thresholds are met. These thresholds are adjusted biennially.

    Source: quickstart.sos.nh.gov · verified 2026-05-02

33. #33

    Maine

    $0/yr franchise tax · $175 filing · $85/annual report · $515 5-year total

    Maine also charges no franchise tax. Filing fee is $175 with $85/annual reports. Use it if you have a genuine in-state presence.

    Note: Maine does not impose a separate franchise or privilege tax on LLCs. The primary ongoing state fee is the annual report fee.

    Source: www.maine.gov · verified 2026-05-15

34. #34

    Illinois

    $0/yr franchise tax · $150 filing · $75/annual report · $525 5-year total

    Illinois also charges no franchise tax. Filing fee is $150 with $75/annual reports. Use it if you have a genuine in-state presence.

    Note: Personal Property Replacement Tax 1.5% applies to multi-member partnership-taxed LLCs.

    Source: www.ilsos.gov · verified 2026-05-15

35. #35

    Oregon

    $0/yr franchise tax · $100 filing · $100/annual report · $600 5-year total

    Oregon also charges no franchise tax. Filing fee is $100 with $100/annual reports. Use it if you have a genuine in-state presence.

    Note: Oregon does not impose a franchise tax on LLCs taxed as pass-through entities. A Corporate Excise Tax applies to corporations and LLCs electing corporate tax status, with a minimum tax starting at $150 based on Oregon sales.

    Source: sos.oregon.gov · verified 2026-05-02

36. #36

    Florida

    $0/yr franchise tax · $125 filing · $138.75/annual report · $818.75 5-year total

    Florida also charges no franchise tax. Filing fee is $125 with $138.75/annual reports. Use it if you have a genuine in-state presence.

    Note: No state personal income tax; no LLC franchise tax.

    Source: dos.fl.gov · verified 2026-05-14

37. #37

    District of Columbia

    $0/yr franchise tax · $99 filing · $300/biennial report · $999 5-year total

    District of Columbia also charges no franchise tax. Filing fee is $99 with $300/biennial reports. Use it if you have a genuine in-state presence.

    Note: The District of Columbia levies a franchise tax on LLCs. For LLCs with gross receipts of $12,000 or more, a minimum tax of $250 applies (for gross receipts up to $1 million). For gross receipts over $1 million, the minimum tax is $1,000. If gross receipts are less than $12,000, no franchise tax is required.

    Source: dlcp.dc.gov · verified 2026-04-28

38. #38

    North Carolina

    $0/yr franchise tax · $125 filing · $202/annual report · $1135 5-year total

    North Carolina also charges no franchise tax. Filing fee is $125 with $202/annual reports. Use it if you have a genuine in-state presence.

    Note: Franchise tax applies to LLCs taxed as corps (multistate apportionment); pass-through LLCs exempt.

    Source: www.sosnc.gov · verified 2026-05-02

39. #39

    Delaware

    $0/yr franchise tax · $90 filing · $300/annual-franchise report · $1590 5-year total

    Delaware also charges no franchise tax. Filing fee is $90 with $300/annual-franchise reports. Use it if you have a genuine in-state presence.

    Note: Flat $300 annual franchise tax for LLCs (separate from corporate franchise tax structure).

    Source: corp.delaware.gov · verified 2026-05-14

40. #40

    Maryland

    $0/yr franchise tax · $100 filing · $300/annual report · $1600 5-year total

    Maryland also charges no franchise tax. Filing fee is $100 with $300/annual reports. Use it if you have a genuine in-state presence.

    Note: Maryland does not impose a general franchise tax on most LLCs. Franchise taxes apply only to specific industries like public service companies and financial institutions.

    Source: egov.maryland.gov · verified 2026-05-02

41. #41

    Nevada

    $0/yr franchise tax · $75 filing · $350/annual report · $1825 5-year total

    Nevada also charges no franchise tax. Filing fee is $75 with $350/annual reports. Use it if you have a genuine in-state presence.

    Note: Nevada does not impose a state-level franchise tax or state income tax on LLCs. However, LLCs are required to obtain and renew a State Business License annually.

    Source: www.nvsos.gov · verified 2026-05-02

42. #42

    Massachusetts

    $0/yr franchise tax · $500 filing · $500/annual report · $3000 5-year total

    Massachusetts also charges no franchise tax. Filing fee is $500 with $500/annual reports. Use it if you have a genuine in-state presence.

    Note: Corporate excise applies only if LLC elects C-corp ($456 min + 8% net income).

    Source: www.sec.state.ma.us · verified 2026-04-28