Each state charges some type of annual fee to maintain a corporation. In many states, you must also submit an "annual report" or "list of directors and officers," which is a one-page form sent by the state. Some states also have state taxes. Annual fees for three popular states – California, Nevada and Delaware – are as follows:
California: A reporting fee of $25, along with a list of directors and officers, is required every year, beginning 60 days after incorporation. State income tax for C-corporations in 2004 was 8.84%, with an $800 minimum (the minimum tax is waived the first year). State income tax for S-corporations in 2004 was 1.5% for most types of income, with a minimum of $800 (the minimum is waived the first year).
Nevada: An Initial List of Officers and Directors is due 30 days after incorporation with a $125 fee. Annual fee is $125. There is no state income tax or franchise tax.
Delaware: A minimum annual franchise tax of $30 (which increases based on the total number of shares authorized). Annual report filing fee is $20. There is no state income tax.
Every Other State: Contact a local accountant.
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