LLC fees

Does a double LLC structure mean paying two sets of state fees?

Started by quietporch • November 11, 2026 • 11 replies

quietporch November 11, 2026 at 4:03 AM

I keep reading about using a holding LLC that owns an operating LLC to keep ownership private. My question is simple: do I end up paying annual report fees and franchise taxes to the state twice? I get that there are two entities, but does the holding company get treated differently if it's just passive? Anyone actually run this setup and know what the real yearly cost looks like?

GreenBicycle November 11, 2026 at 8:04 AM

Yes, two entities = two sets of state fees. The state doesn't care that one LLC owns the other. Annual report, franchise tax, registered agent fee for each. It's not double the operating costs, but it's definitely double the compliance bill

mossy_brick November 11, 2026 at 8:28 AM

What state though? In some states the holding company might qualify for a lower franchise tax tier if it has minimal revenue. But you're still filing two annual reports.

tuesday_noon November 11, 2026 at 9:25 AM

GreenBicycle nailed it. I run a holdco/opco pair in Wyoming. Two annual reports, two registered agent fees. The holdco's report is cheaper because it has no real business activity, but it's not free. Budget maybe $500–$800 extra per year depending on the agent.

spackle_king November 11, 2026 at 9:29 AM

Wait. People pay two registered agents? Couldn't you just use one agent for both entities and save a few bucks?

mossy_brick November 11, 2026 at 9:38 AM

Some agents give a discount for multiple entitties. But you still pay per entity. No way around the state fees though.

tuesday_noon November 11, 2026 at 11:22 AM

You can use the same registered agent for both, yeah. I should've been clearer. The fee is still charged per entity, but you might get a bundle discount. My agent charges $125 for the first and $75 for each additional. Still adds up.

GreenBicycle November 11, 2026 at 12:32 PM

Honestly, if you're just trying to obscure ownership, a double LLC is overkill in most states. You can often use a registered agent with a privacy-forward address and skip the holding entity entirely. But if you're doing it for liability layering, then yeah, pay the piper.

wanderin_ferb November 11, 2026 at 1:27 PM

This thread is making me appreciate my single-member LLC. One set of fees is already annoying enough.

spackle_king November 11, 2026 at 2:08 PM

I hear that. But then you read one blog post about 'privacy layers' and suddenly you're drafting an org chart for your dog's treat business.

mossy_brick November 11, 2026 at 2:24 PM

One more wrinkle: some states have a minimum franchise tax even if the holdco is dormant. California, for example, hits you with the $800 minimum for each LLC. So a double LLC there is a $1,600 baseline before you even file anything. That's the real gotcha

tuesday_noon November 11, 2026 at 5:27 PM

Yep. And don't forget the initial formation fees. Two of those too. So first year is even more painful.

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