Forming an LLC takes a few days of paperwork. Keeping it alive takes years of maintenance that most states never explain upfront. Miss a single filing deadline, and your state can dissolve your business within months, stripping away the liability protection you created it for in the first place.
LLC maintenance is straightforward once you understand what's actually required. This guide covers how long LLCs last, what each state demands to keep yours active, and what happens if you fall out of compliance.
How Long an LLC Actually Lasts
Every state defaults to perpetual existence for LLCs. Delaware law gives LLCs permanent existence unless you choose an end date in your operating agreement. Across all states, this pattern holds: your LLC exists indefinitely unless you specify otherwise or fail to maintain compliance.
Perpetual existence serves ongoing businesses perfectly, including retail stores, service companies, consulting practices, and growing startups.
Fixed-term LLCs automatically dissolve after a specified period and fit project-based ventures like real estate developments or film productions with predetermined endpoints.
Perpetual existence doesn't guarantee good standing. Your LLC's legal authority to operate depends on filing periodic reports, paying required fees, and maintaining a registered agent. Miss these requirements, and your state can begin dissolution proceedings.
Annual Report Requirements Vary Dramatically by State
State filing requirements range from no annual cost for eligible LLCs to significant annual fees depending on where you're registered. Arizona and Delaware have no annual report filing requirements for LLCs. Arizona has no annual report requirement, though you must maintain a statutory agent. Delaware requires no report filing but does charge a separate annual franchise tax.
State-by-State Filing Costs and Deadlines
For states that do require annual reports, here's what you can expect to pay and when:
State | Annual Cost | Deadline |
Florida | $ 125 | May 1 |
Washington | $60 | Last day of anniversary month |
Illinois | $75 | Last day of month before anniversary month |
Texas | $0 (for qualifying LLCs) | May 15 (Public Information Report required) |
What Happens When You Miss a Deadline
When your state administratively shuts down your LLC, the process follows a timeline that strips your business of legal authority to operate. Missing your filing deadline triggers the sequence immediately.
A Typical Dissolution Timeline
Note: Timelines vary by state. The following is illustrative of common patterns, not a universal statutory sequence.
While specifics differ, most states follow a similar progression from missed deadline to full dissolution:
Days 1-30: Your filing deadline passes
Days 30-60: State sends written notice to your registered agent
Days 60-120: Grace period to file missing reports and pay accumulated fees
Days 120-180: State terminates your LLC's good standing
Check your specific state's statutes for exact timeframes, as some states move faster or slower than this example.
Consequences of Dissolution
After termination or revocation, your business name may remain unavailable for others to register during a statutory protection period. Any brand recognition or marketing investment tied to that name could be lost permanently. If you continue operating after dissolution, you become personally liable for all business debts and obligations, with courts able to reach personal assets including homes, savings, and vehicles.
The Reinstatement Process
States typically let you recover from administrative dissolution within specific timeframes. The process varies but usually remains possible for 1 to 5 years after your state dissolves your LLC.
Reinstatement typically requires filing back reports for each missed year, paying accumulated late fees and penalties, and in some cases obtaining a Certificate of Good Standing from the state tax authority before the Secretary of State processes your application. The longer you wait to address dissolution, the more complex and expensive reinstatement becomes.
All States Require Registered Agents
Missing a lawsuit notification or tax deadline because mail went to an old address can cost your business thousands in penalties or default judgments. That's exactly the problem registered agents solve.
Every state requires that LLCs maintain a registered agent (sometimes called a statutory agent or resident agent) with a physical street address in the state where the LLC is registered. Some states allow the Secretary of State to serve as a default agent under limited circumstances, but this doesn't eliminate the requirement. Failure to maintain continuous coverage puts your LLC out of compliance.
Your registered agent receives service of process for lawsuits, state correspondence, tax documents, and compliance reminders. For businesses looking to manage cash flow effectively, budgeting for registered agent services should be part of your annual planning.
Franchise Taxes Are Separate From Annual Report Filing Fees
It's easy to assume your annual report fee covers all state obligations, then get hit with a separate franchise tax bill you weren't expecting. These are two completely different charges.
Franchise tax is an annual fee your state charges for operating as an LLC, completely separate from both federal income tax and annual report fees.
How States Handle Franchise Taxes
The amount you owe depends entirely on where your LLC is registered:
State | Franchise Tax | Notes |
Delaware | $300 flat | No annual report required |
Texas | $0 | For businesses under $2.47M revenue |
New York | Varies | $9 biennial statement required; additional fees may apply depending on LLC structure |
California | $800 minimum | Tiered structure for higher incomes |
California's Tiered Franchise Tax Structure
California's franchise tax ignores income for LLCs, meaning unprofitable businesses still owe the $800 minimum. Higher-income LLCs pay additional fees:
Income Range | Additional Fee |
$250,000 - $499,999 | $900 |
$500,000 - $999,999 | $2,500 |
$1,000,000 - $4,999,999 | $6,000 |
$5,000,000+ | $11,790 |
The Maintenance Task That Destroys LLC Protection
Filing reports and paying taxes keep your LLC active, but one mistake eliminates liability protection regardless of compliance status: mixing personal and business finances. Using the same bank accounts or credit cards for personal and LLC transactions is the most dangerous mistake LLC owners make.
Courts remove the legal separation between you and your business when finances are mixed, exposing everything you own to business liabilities.
The fix is straightforward: open separate business bank accounts1 immediately and use accounting software to track all transactions separately. Never pay personal expenses from business accounts or deposit personal income into business accounts.
Building a Compliance System That Works
LLC maintenance takes advance planning rather than reactive scrambling. Some states use fixed calendar deadlines while others use anniversary-based systems that require careful tracking. Create calendar reminders at 60, 30, and 7 days before each deadline.
Budget for Annual Compliance Costs
Plan for these recurring expenses when setting your annual budget:
Expense | Cost Range |
Registered agent services | $119 - $249 |
Annual/biennial report fees | Varies by state |
Late penalties | $400+ |
Conduct quarterly compliance audits to verify your entity status remains "active" in all operating states, confirm your registered agent information is current, and ensure business licenses haven't expired. This becomes especially important if your LLC operates across multiple states, since foreign qualification in each additional state triggers separate compliance obligations with independent deadlines, fee structures, and registered agent requirements.
Set Your LLC Up for Long-Term Success
Your LLC can last indefinitely, but only if you stay on top of maintenance requirements: tracking filing deadlines, budgeting for annual reports and franchise taxes, and maintaining a registered agent.
Beyond compliance paperwork, the single biggest threat to your LLC's liability protection is commingled finances. When personal and business funds mix, courts can pierce the corporate veil and hold you personally responsible for business debts.
Relay helps you maintain financial separation by giving you up to 20 separate checking accounts to organize your business finances, including a dedicated account for compliance costs. With no monthly fees and no minimum balances, Relay makes it easy to keep your LLC in good standing year after year.
Open a Relay account today and protect the LLC you worked hard to build.
Disclosures
1Relay is a financial technology company and is not an FDIC-insured bank. Banking services provided by Thread Bank, Member FDIC. FDIC deposit insurance covers the failure of an insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply.
