State Business Compliance Checklists

Every state has different rules for forming and running a business. Pick your state to see LLC filing fees, annual report deadlines, franchise tax, sales tax registration thresholds, and other must-know compliance items. Data updated Q1 2025.

Business Structures

Compliance requirements vary significantly by business type. Learn the differences.

LLC

Most small businesses. Liability protection with minimal formality. Owner-operated shops, side businesses, rentals.

Tax: Pass-through by default. Can elect S-Corp taxation. No entity-level federal tax.

S-Corporation

Profitable businesses generating $60K+ net income where owner can save 15.3% SE tax on distributions above reasonable salary.

Tax: Pass-through. Owner takes a 'reasonable salary' as W-2 wages; remainder is distribution (no SE tax on distributions).

C-Corporation

Startups raising VC funding, businesses planning IPO, or those needing multiple share classes / foreign owners.

Tax: Entity-level federal tax (flat 21%). Dividends taxed again to shareholders (double taxation).

Sole Proprietorship

Very small side hustles, freelancers with no liability exposure, testing a business idea before formalizing.

Tax: Pass-through. Owner reports business income on Schedule C. Full SE tax on all profits.

Partnership

Businesses with multiple owners not incorporating. Real estate ventures, professional practices.

Tax: Pass-through. Files Form 1065 informational return; income flows to partners' K-1 forms.