LLC made no money? You still owe the annual report

This page is general information, not legal or tax advice. Rules and fees differ by state. Confirm details with your state's filing office, and ask a tax professional about taxes.

Is the annual report based on income?

Usually not. In most states, the annual report is a short filing with the Secretary of State (or a similar office) that confirms basics like your address, registered agent, and managers or members. The state wants it because the LLC is on its books, not because it earned anything.

So "we made no money this year" doesn't get you out of it. A dormant side business, or an LLC you stopped using but never closed, generally owes the same report as a busy one.

Keep two things separate:

• The state annual report. A business-records filing, due whether or not you had revenue.
• State taxes. Separate rules, often a different agency. Some don't depend on profit at all.

Names vary by state (annual report, biennial statement, statement of information). Our annual reports overview explains the differences.

States that still charge with no income: California and Texas

Figures below come from the official agency pages linked at the end of this article.

California: $800 annual tax plus the Statement of Information

California splits the work between two agencies:

• Franchise Tax Board (FTB). The FTB says every LLC "that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC." The FTB has announced a lower first-year tax ($400) for LLCs whose first taxable year begins in 2027 through 2029.
• Secretary of State. California LLCs file a Statement of Information ($20) within 90 days of registering and every two years after that. If you miss it and don't file within 60 days of a delinquency notice, the FTB collects a $250 penalty for the Secretary of State.

So a $0-revenue California LLC can still owe $800 a year, plus the $20 statement every other year. Details: California LLC annual tax and Statement of Information.

Texas: often no tax due, but the PIR is still due

Texas has no Secretary of State annual report for LLCs. They file with the Texas Comptroller, and the annual franchise tax report is due May 15.

For 2026 reports, the Comptroller's no-tax-due threshold is $2.65 million in annualized total revenue. An LLC at or below that threshold doesn't file a No Tax Due Report, but the Comptroller says "the entity is still required to file a Public Information Report (PIR) or an Ownership Information Report (OIR)." Exceptions include qualifying new veteran-owned businesses and passive entities.

The Comptroller also warns that even an entity at or below the threshold "may forfeit its right to transact business" if it doesn't file a completed and signed PIR or OIR. A late report draws a $50 penalty. Details: Texas franchise tax report.

Check My Business Free — see which filings your LLC still has, even in a $0 year.

What happens if you skip it

Depending on the state, a missed filing can mean:

• Late fees or penalties, like California's $250 Statement of Information penalty or Texas's $50 late-report penalty.
• Loss of good standing. A past-due filing can block a certificate of good standing, which banks and other states often ask for.
• Suspension, forfeiture or dissolution. California says continued non-filing can lead to suspension or forfeiture. In Texas, a missing PIR can forfeit the LLC's right to transact business.

Quiet LLCs are the easiest to miss, because notices often go to your registered agent and nobody is watching. Already behind? See what to do if you missed an LLC annual report deadline.

Keep the LLC or close it properly

If you plan to use the LLC again, keep filing; reinstating a lapsed LLC is more work. If you're done with it, close it on purpose, because letting it sit generally doesn't end it. In California, the FTB says the $800 tax is due "until you cancel your LLC," and closing means filing paperwork with both the Secretary of State and the FTB. The California Secretary of State says it charges no filing fee for a termination document. Other states have their own official steps.

How to stay current with little effort

A quiet LLC needs a short routine:

1. Find your due date and fee on the official site, plus any tax your state charges regardless of income. Write down the actual next date.
2. Set reminders 60, 30 and 7 days ahead, so the filing doesn't depend on a letter.
3. Watch registered-agent mail and forward state notices fast.
4. File on the official portal, not a look-alike mailer. Save the receipt.
5. Confirm it posted by checking your LLC's status afterward.

Startup To Corporate tracks deadlines. It doesn't file reports and isn't a registered agent. Basic ($12.99/mo or $129/yr) includes automated reminders for up to 5 active entities. See plans.

The bottom line

An LLC that made no money usually still owes its annual report, because the report is about the LLC existing, not its income. Taxes are separate, and some states, like California, charge even in a $0 year. Calendar the real due date, set reminders, and either keep filing or close the LLC properly.

Check My Business Free — then see plans and pricing to keep every deadline in one place.

Last verified Nov 11, 2026. This page is general information, not legal or tax advice.