State Compliance Requirements for LLCs

Every state has ongoing requirements for LLCs. Understanding these requirements helps you maintain good standing and avoid penalties.

State Compliance Overview

State compliance refers to the ongoing requirements your LLC must meet to remain in good standing with the state. These requirements vary by state but typically include:

• Annual report filings
• Franchise tax payments
• Registered agent maintenance
• Business license renewals
• Address and member updates

Failing to meet these requirements can result in penalties, loss of good standing, or even dissolution of your LLC.

Good Standing Status

Good standing means your LLC has met all state requirements and is authorized to conduct business. A Certificate of Good Standing (also called Certificate of Status or Certificate of Existence) proves this status.

You'll need a Certificate of Good Standing when:

• Opening business bank accounts
• Applying for loans or lines of credit
• Registering to do business in other states
• Renewing business licenses
• Entering major contracts
• Selling your business

To maintain good standing:

• File annual reports on time
• Pay all required fees and taxes
• Maintain a registered agent
• Keep your information current

Foreign Qualification

If you do business in a state other than where your LLC was formed, you may need to foreign qualify in that state.

When Foreign Qualification Is Required

Generally required when you have:

• Physical office or location in the state
• Employees working in the state
• Bank accounts in the state (sometimes)
• Significant business activities in the state

When Foreign Qualification Is NOT Required

Usually not required for:

• Simply having customers in the state
• Making sales via internet to the state
• Attending occasional meetings
• Owning real estate (depends on state)

Foreign Qualification Process

1. Get a Certificate of Good Standing from your home state
2. File foreign qualification application in the new state
3. Appoint a registered agent in the new state
4. Pay the state filing fee

Common State Requirements

Annual Reports

Most states require annual (or biennial) reports. See our annual reports guide for details.

Registered Agent

You must maintain a registered agent in every state where your LLC is registered. If your agent resigns or their address changes, update your records with the state.

Business Licenses

Beyond state-level requirements, you may need:

• City or county business licenses
• Industry-specific permits
• Professional licenses
• Sales tax permits

Tax Filings

Even if your LLC has no income, you may need to file:

• State income tax returns (if applicable)
• Franchise tax returns
• Sales tax returns (if you collect sales tax)

Staying Compliant

Here's how to stay on top of your compliance requirements:

Create a Compliance Calendar

Track all filing deadlines, renewal dates, and payment due dates. Set reminders at least 30 days before each deadline.

Keep Records Updated

When anything changes (address, members, registered agent), file updates with the state promptly.

Set Up Automatic Payments

Where possible, enable automatic renewal and payment for licenses and fees.

Use a Compliance Service

Services like StartGlobal track deadlines and file reports on your behalf, ensuring you never miss a requirement.

Frequently Asked Questions