How much does each rental property LLC cost per year in state fees?
It depends heavily on the state. In the five states below, the yearly state charge for one LLC ranges from $0 of franchise tax in Texas for a small LLC, which still files a report, to $800 a year in California, plus an extra California fee once an LLC's income reaches $250,000. Holding each building in its own LLC multiplies the charge by the number of buildings, so it belongs in the decision.
Five states side by side
| State | Yearly charge for an LLC | When due | Source |
|---|---|---|---|
| California | $800 annual tax, plus an LLC fee from $900 (total California income of $250,000 to $499,999) up to $11,790 ($5 million or more) | Annual tax: 15th day of the 4th month of the tax year; fee estimate: 15th day of the 6th month | Franchise Tax Board |
| Delaware | $400 annual tax, no annual report | June 1, for the prior year | Division of Corporations |
| Florida | $138.75 annual report | By May 1, 2026 to avoid a $400 late fee | Division of Corporations (Sunbiz) |
| Tennessee | $300 to $3,000 annual report fee: $300 minimum, plus $50 per member over 6 | Annual report | Secretary of State |
| Texas | No franchise tax due at or below $2,650,000 of revenue (2026 and 2027 reports); a Public Information or Ownership Report is still filed | May 15 | Comptroller |
These are the state's own charges. Registered agent fees, a city business license, local taxes on rent and the state income tax on your profit are separate. Other states differ; check your Secretary of State and revenue department.
California: the $800 that applies even with no income
The Franchise Tax Board says every LLC doing business or organized in California must pay an annual tax of $800, due even if it is not conducting business, until the LLC is canceled. The first year's tax is due by the 15th day of the 4th month after the LLC files with the Secretary of State, paid with Form FTB 3522. The FTB also lists an LLC fee once total California income reaches $250,000: $900 for $250,000 to $499,999, $2,500 for $500,000 to $999,999, $6,000 for $1 million to $4,999,999 and $11,790 at $5 million or more, estimated and paid by the 15th day of the 6th month with Form FTB 3536. Every LLC files Form 568.
The FTB page notes a first-year exemption from the $800 for LLCs formed in tax years beginning from 2021 through 2023; it does not apply to an LLC formed today.
Delaware, Florida, Tennessee and Texas
Delaware's Division of Corporations says all domestic and foreign LLCs formed or registered in Delaware pay an annual tax of $400, due on or before June 1 for the prior year, with a $200 penalty plus 1.5% interest a month for failing to pay, and no proration. Many owners who form in Delaware and own the building in another state also register there as a foreign LLC, which adds that state's charges.
Florida's annual report page lists $138.75 for an LLC and says 2026 reports filed after 11:59 PM on May 1, 2026 get a $400 late fee. Tennessee's Secretary of State FAQ says the LLC annual report fee is $300 minimum up to $3,000, increasing $50 per member for every member over 6. The Texas Comptroller lists a no tax due threshold of $2,650,000 for 2026 and 2027 reports and a May 15 due date; an LLC at or below it files only its Public Information Report or Ownership Report.
Adding it up for four buildings
Example a made-up owner holds four apartment buildings, each in its own LLC. In California, four LLCs pay 4 x $800 = $3,200 a year, and one building with $410,000 of total California income adds a $900 fee, for $4,100. The same four LLCs in Florida pay 4 x $138.75 = $555. In Delaware they pay 4 x $400 = $1,600, before any registration in the state where the buildings sit. In Texas, with each LLC below the threshold, the franchise tax is $0, but four reports are still due May 15.
Those totals are a cost of the separation that one LLC per property gives you: one building's lawsuit or loan stays with that building, and each has clean books. Many owners decide the protection is worth it; the point is to put the number in the budget. Ask your attorney about the liability side and your tax preparer about the tax side.
Put every LLC's dates on one calendar
- List each LLC with its state, formation date and fiscal year, since several deadlines run from the formation month.
- Pay the state charge from that LLC's own bank account, so it lands in the right books as a legal and professional or taxes expense.
- Keep each confirmation in that LLC's documents; lenders and buyers ask for good standing certificates.
- Review the list each January, when new rates and thresholds are usually posted.
Tracking per-LLC costs in DoorKeeping
Each property in DoorKeeping has its own LLC books and bank feed, so a state fee paid from that LLC's account is matched and categorized in that building's profit and loss, and the receipt can be stored with its documents. You can ask your AI app what each LLC paid in state fees last year across your whole portfolio. DoorKeeping does not file state reports for you.
Sources
- California Franchise Tax Board, Limited liability company, read Oct 30, 2026
- Delaware Division of Corporations, LLC, LP and GP tax instructions, read Oct 30, 2026
- Florida Division of Corporations, Annual report, read Oct 30, 2026
- Tennessee Secretary of State, Business services FAQs, read Oct 30, 2026
- Texas Comptroller, Franchise tax, read Oct 30, 2026
Questions
- Does a California LLC pay $800 even if the building lost money?
- Yes. The Franchise Tax Board says the $800 annual tax is due even if the LLC is not conducting business, until it is canceled.
- What does a Delaware LLC cost each year?
- Delaware lists a $400 annual tax due June 1 for the prior year, with a $200 penalty plus 1.5% monthly interest if unpaid.
- Do Texas rental LLCs pay franchise tax?
- Not if revenue is at or below the no tax due threshold, $2,650,000 for 2026 and 2027 reports, but the LLC still files a Public Information or Ownership Report.