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S Corp Fees by State: How Much Does It Pay to Incorporate?

Lettuce : Oct 27, 2025

S Corp Benefits & Formation

S Corp Fees by State: How Much Does It Pay to Incorporate?

S Corp fees by state range from $50 to over $800 annually, but once your business income hits $80,000, the tax savings usually outweigh these costs. Business-friendly states like Wyoming and Florida keep fees low, while others like California charge more. Automation eliminates compliance headaches, so you maximize savings without the paperwork stress.

S Corp fees by state can range from as little as $50 to more than $800, and that variation has a direct impact on your tax savings. For solopreneurs weighing the switch, these costs aren’t just filing details; they’re part of the bigger equation that determines whether your S Corp delivers maximum value.

Once your business income reaches $80,000 annually, S Corp tax savings usually outweigh the added fees. That’s when the choice of state becomes strategic: some states keep costs light and simple, while others impose annual franchise taxes that chip away at your gains.

With Lettuce, the process is automated from start to finish. Your S Corp setup, state filings, and compliance deadlines are handled in minutes, so you capture the savings without the paperwork or penalty risks.

What Are S Corp Fees?

S Corp fees are the costs you pay to form and maintain your corporation at the state level. They include one-time formation charges, recurring annual reports or franchise taxes, and the hidden penalties that come from missed filings. While IRS rules are the same nationwide, S Corp fees by state vary widely — from under $100 a year in Wyoming to $800+ in California.

Formation Fees

Formation fees are the initial costs of incorporating. These range from about $50 in low-cost states to $500+ in premium states. Once you factor in registered agent services, EIN applications, and S Corp election paperwork, most solopreneurs spend $500–$750 total to get set up.

Annual Fees

Annual fees cover state compliance filings and, in some states, franchise or excise taxes. Most states fall in the $100–$250 range, but California charges $800 annually regardless of income, while Wyoming’s flat $60 license tax keeps costs minimal. These recurring fees can make a significant difference in your bottom line.

Hidden Costs

Hidden costs come from mistakes: missed deadlines, late penalties, or juggling multiple vendors. Because each state has different schedules, it’s easy to slip up. Automated platforms eliminate this risk by handling paperwork and compliance automatically, turning unpredictable fees into one flat cost you can plan for.

When you know the whole picture: formation, annual, and hidden costs, you can see that fees are manageable compared to the tax savings. With automation handling deadlines and filings, those costs become predictable, leaving you free to focus on the bigger gains from S Corp status. Be sure to consult your tax advisor for state filing requirements in the state you incorporate in and do business in. Generally, the filing requirements are the same regardless of your corporate status.

S Corp Fees by State: See the Numbers That Matter Most

Here’s how S Corp costs compare across different states. Formation fees, annual reports, and franchise/minimum taxes vary widely, shaping your long-term bottom line. We recommend visiting your state government’s site directly, as fees and taxes can change over time.

Alabama

Formation Fee: $200
Annual/Biennial Report Fee: $100 Annual Report
Franchise/Minimum Tax: Business Privilege Tax: $50 min. (eliminated 2024 onward)
Notes: Filing links with the tax return

Alaska

Formation Fee: $250
Annual/Biennial Report Fee: $100 Biennial Report
Franchise/Minimum Tax: None
Notes: $50/yr state business license

Arizona

Formation Fee: $60
Annual/Biennial Report Fee: $45 Annual Report
Franchise/Minimum Tax: None
Notes: Profit corporations only

Arkansas

Formation Fee: $50
Annual/Biennial Report Fee: $150 Annual Franchise Tax
Franchise/Minimum Tax: $150 min. or 0.3% of capital stock
Notes: Flat or percentage-based

California

Formation Fee: $100
Annual/Biennial Report Fee: $25 Annual Statement
Franchise/Minimum Tax: $800 min. franchise tax + 1.5% S-Corp income tax
Notes: First year exempt

Colorado

Formation Fee: $50
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: None
Notes: No franchise tax

Connecticut

Formation Fee: $250(min.)
Annual/Biennial Report Fee: $150 Annual Report
Franchise/Minimum Tax: 250
Notes: $250 cert. + $150 org. fee

Delaware

Formation Fee: $109
Annual/Biennial Report Fee: $50 Annual Report
Franchise/Minimum Tax: $175+ franchise tax (shares-based)
Notes: Popular incorporation state

Florida

Formation Fee: $70
Annual/Biennial Report Fee: $150 Annual Report
Franchise/Minimum Tax: None
Notes: Business-friendly

Georgia

Formation Fee: $100
Annual/Biennial Report Fee: $50 Annual Registration
Franchise/Minimum Tax: None
Notes: $10 online service fee

Hawaii

Formation Fee: $50
Annual/Biennial Report Fee: $15 Annual Report
Franchise/Minimum Tax: None
Notes: Straightforward compliance

Idaho

Formation Fee: $100
Annual/Biennial Report Fee: $0 Annual Report
Franchise/Minimum Tax: None
Notes: Report required, no fee

Illinois

Formation Fee: $$175 (incl. min. franchise tax)
Annual/Biennial Report Fee: $75 Annual Report
Franchise/Minimum Tax: Franchise tax phased out, $25 min. until 2025
Notes: Transition state

Indiana

Formation Fee: ~$100
Annual/Biennial Report Fee: $30 Biennial Report
Franchise/Minimum Tax: None
Notes: $98 online filing

Iowa

Formation Fee: $50
Annual/Biennial Report Fee: $60 Biennial Report ($45 online)
Franchise/Minimum Tax: None
Notes: Income tax only

Kansas

Formation Fee: $90 (online)
Annual/Biennial Report Fee: $50 Annual Report
Franchise/Minimum Tax: None
Notes: Franchise tax phased out

Kentucky

Formation Fee: $50
Annual/Biennial Report Fee: $15 Annual Report
Franchise/Minimum Tax: None
Notes: Low annual cost

Louisiana

Formation Fee: $60
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: $110 min. franchise tax
Notes: First $300k exempt

Maine

Formation Fee: $145
Annual/Biennial Report Fee: $85 Annual Report
Franchise/Minimum Tax: None
Notes: Income tax only

Maryland

Formation Fee: $120
Annual/Biennial Report Fee: $300 Annual Return
Franchise/Minimum Tax: $300 entity fee
Notes: Functions like a franchise tax

Massachusetts

Formation Fee: $275
Annual/Biennial Report Fee: $125 Annual Report
Franchise/Minimum Tax: $456 min. annual excise tax
Notes: Applies to S Corps

Michigan

Formation Fee: $50
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: None
Notes: Income tax only

Minnesota

Formation Fee: $155
Annual/Biennial Report Fee: $0 Annual Renewal
Franchise/Minimum Tax: None
Notes: Renewal required, no fee

Mississippi

Formation Fee: $50
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: None
Notes: Franchise tax phased out by 2024

Missouri

Formation Fee: $50
Annual/Biennial Report Fee: $45 Annual Report, $90 Biennial
Franchise/Minimum Tax: None
Notes: No annual report for domestic corps

Montana

Formation Fee: $35
Annual/Biennial Report Fee: $20 Annual Report
Franchise/Minimum Tax: None
Notes: Low annual fee

Nebraska

Formation Fee: $60
Annual/Biennial Report Fee: Biennial (~$52 min.)
Franchise/Minimum Tax: Occupation tax, capital-based
Notes: ~$26/yr minimum

Nevada

Formation Fee: $575 (incl. $500 license)
Annual/Biennial Report Fee: $650 Annual (incl. $500 license)
Franchise/Minimum Tax: None
Notes: High upfront costs

New Hampshire

Formation Fee: $100
Annual/Biennial Report Fee: $100 Annual Report
Franchise/Minimum Tax: None
Notes: Business Profits Tax 7.5% applies

New Jersey

Formation Fee: $125
Annual/Biennial Report Fee: $75 Annual Report
Franchise/Minimum Tax: Corporation business tax, min. $375–$2,000
Notes: Based on payroll size

New Mexico

Formation Fee: $125
Annual/Biennial Report Fee: $25 Biennial Report
Franchise/Minimum Tax: $50 Franchise tax
Notes: No domestic annual report

New York

Formation Fee: $125
Annual/Biennial Report Fee: $9 Biennial Statement
Franchise/Minimum Tax: $25–$4,500 S-Corp fee (receipts-based)
Notes: Scales with revenue

North Carolina

Formation Fee: $125
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: $200 min. franchise tax
Notes: 0.15% of capital

North Dakota

Formation Fee: $100
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: None
Notes: Low annual fee

Ohio

Formation Fee: $99
Annual/Biennial Report Fee: $0 Annual Report
Franchise/Minimum Tax: None
Notes: Franchise tax eliminated

Oklahoma

Formation Fee: $50
Annual/Biennial Report Fee: $25 Annual Franchise Return
Franchise/Minimum Tax: $25–$250 franchise tax
Notes: $1.25 per $1,000 of capital

Oregon

Formation Fee: $100
Annual/Biennial Report Fee: $100 Annual Report
Franchise/Minimum Tax: $150 minimum excise tax
Notes: Applies to S Corps

Pennsylvania

Formation Fee: $125
Annual/Biennial Report Fee: $7 Annual Report
Franchise/Minimum Tax: None
Notes: Minimal recurring fees

Rhode Island

Formation Fee: $230
Annual/Biennial Report Fee: $50 Annual Report
Franchise/Minimum Tax: $400 min. corporate tax
Notes: Applies to S Corps

South Carolina

Formation Fee: $135
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: $25 license tax + 0.1% capital (min.)
Notes: Filed with tax return

South Dakota

Formation Fee: $150
Annual/Biennial Report Fee: $50 Annual Report
Franchise/Minimum Tax: None
Notes: No income or franchise tax

Tennessee

Formation Fee: $100 (min.)
Annual/Biennial Report Fee: $20 Annual Report
Franchise/Minimum Tax: 0.25% franchise tax + 6.5% excise
Notes: Applies to S Corps

Texas

Formation Fee: $300
Annual/Biennial Report Fee: $0 Annual Report (franchise only)
Franchise/Minimum Tax: Margin tax if revenue > $2.47M
Notes: Most S Corps owe $0

Utah

Formation Fee: $59
Annual/Biennial Report Fee: $18 Annual Renewal
Franchise/Minimum Tax: None
Notes: Income tax only

Vermont

Formation Fee: $155
Annual/Biennial Report Fee: $45 Annual Report
Franchise/Minimum Tax: $250 min. corporate income tax
Notes: Applies to S Corps

Virginia

Formation Fee: $75
Annual/Biennial Report Fee: $100 Annual Registration
Franchise/Minimum Tax: None
Notes: Straightforward costs

Washington

Formation Fee: $180
Annual/Biennial Report Fee: $70 Annual Report
Franchise/Minimum Tax: None (B&O tax applies)
Notes: Gross receipts tax

West Virginia

Formation Fee: $100
Annual/Biennial Report Fee: $50 Annual Report
Franchise/Minimum Tax: $50 license tax
Notes: Capital-based

Wisconsin

Formation Fee: $100
Annual/Biennial Report Fee: $25 Annual Report
Franchise/Minimum Tax: None
Notes: Income tax only

Wyoming

Formation Fee: $100
Annual/Biennial Report Fee: $60 Annual Report License Tax (min.)
Franchise/Minimum Tax: None
Notes: $0.0002 per $1 of assets

Pro Tip: If cost is a priority, states like Wyoming, Florida, and South Dakota offer some of the lowest S Corp fees, while high-cost states such as California and Nevada can quickly eat into your tax savings.

S Corp Fees by State vs. Tax Savings: When the Switch Pays Off

S Corp fees by state can feel like a barrier at first glance. Some states charge only $50 a year, while others—like California—impose an $800 minimum franchise tax regardless of income. But the real question isn’t the fee itself, it’s whether those costs are outweighed by the tax savings you unlock once you switch.

For most solopreneurs, the turning point is around $80,000 in annual business income. At that level, the savings from reduced self-employment taxes usually outpace what you’ll spend on state filing fees, annual reports, or franchise taxes.

Here’s how the balance plays out in practice:

Switching mid-year accelerates savings — Filing Form 2553 partway through the year means you don’t have to wait until January to cut your tax bill.
LLC owners already qualify — Electing S Corp status doesn’t change your legal structure; it simply changes how the IRS taxes your LLC.
The salary vs. distribution split drives efficiency — A reasonable salary is subject to regular payroll taxes, but distributions avoid self-employment taxes, which is where the compounding benefit comes in.

In short, once your annual business income clears the $80K mark, S Corp tax savings almost always outweigh state fees, no matter where you incorporate.

With Lettuce, the entire process becomes automatic. Instead of juggling formation paperwork, IRS filings, and payroll setup across multiple vendors, everything runs through one platform in a 10-minute setup. State filings, tax withholdings, and compliance deadlines are handled in the background, so you keep the savings without the stress.

Frequently Asked Questions (FAQs) About S Corp Fees by State

These frequently asked questions give you the precise numbers and strategic insights that drive confident optimization decisions.

How much does it cost to form an S Corp in my state?

Formation fees range from $ 45 in states like Arkansas and Iowa to over $275 in states like Massachusetts. Most fall between $100–$300, with Wyoming at $100 and California at $100 plus higher ongoing costs.

What ongoing S Corp fees should solopreneurs expect by state?

Annual fees vary from $0 in states like Ohio and New Mexico to $800 in California. Many states charge $100–$250 for annual reports or franchise taxes, while Wyoming charges $60 flat.

Can I switch my LLC to an S Corp mid-year for partial-year tax savings?

Yes. The IRS allows mid-year elections using Form 2553 up to March 15 or with a late election and reasonable cause, so you can potentially start saving immediately instead of waiting until January. Payroll and compliance requirements begin as soon as the election takes effect.

Which states offer the best cost-to-benefit ratio for S Corp formation?

Wyoming, Florida, and South Dakota keep both formation and annual costs low, often under $200 total each year. High-cost states like California ($800 annual tax) or Nevada ($500 recurring fees) can cut into your savings if your profit levels are lower.

If I am incorporated in a state I am not doing business in, do I still need to file taxes for that state?

The short answer is yes. If you are registered in a state but have no business in it, you still need to report your business income and show how much of it is allocated to this particular state. The allocated income could be $0, which is fine, but you still need to let the state know by filing applicable forms. If the state has no income tax (like Wyoming or Texas), then that would be the only reason why you don’t need to file the income tax forms.

How does automated compliance eliminate state filing headaches?

Automation ensures state reports, franchise taxes, and IRS deadlines are filed on time. It removes late penalties, handles multi-state compliance, and keeps you in good standing without manual tracking.

Do S Corp fees outweigh the tax savings for solo businesses?

For businesses earning over $80,000 annually, S Corp tax savings almost always exceed state fees by thousands of dollars. Even in high-cost states, the self-employment tax reduction more than offsets administrative expenses.

Turning State Fees Into Long-Term Savings

Even in states with high annual costs like California ($800) or Nevada ($500 ), the tax savings from an S Corp usually outweigh the fees once business income passes $80,000. For solopreneurs, these recurring charges are modest compared to the thousands saved each year on self-employment taxes.

The challenge is keeping compliance simple so fees don’t become penalties. Lettuce automates formation, filings, and payroll, making every requirement seamless in the background. Get started today and turn state fees into a lasting tax-saving advantage.