What is a minimum llc tax, really?

What to do about it

To make it stop, dissolve the LLC through the state. An unused company left on the books keeps owing the tax, and the unpaid amounts pile up quietly until somebody files to shut it down.

Say you started an LLC for a side project that never took off. If it sits in one of these states, the tax keeps arriving every year. That is how a quiet company turns into a pile of unpaid bills, so close it if the plan is dead.

How states handle it

Look for your state among these 3. If it's missing, it has no minimum tax on LLCs, though it might still charge a report fee, which is covered on that state's own page.

• 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.

Where it comes up

You will see it on these pages: Starting an LLC: every state, Do you need an agent? By state, Using your LLC in another state.