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To form an LLC in California you pay $70 to the Secretary of State for the Articles of Organization. The recurring state cost is the $800 annual LLC tax paid to the Franchise Tax Board, plus a $20 Statement of Information filed when you start and every two years after.
Two offices are involved. The Secretary of State handles filings and records, which our California business entity search guide covers. The Franchise Tax Board collects the tax.
First year and each year after
Filing fees are from the Secretary of State business entities fee schedule. The tax lines are from the Franchise Tax Board LLC page.
| Charge | Paid to | When | Amount |
|---|---|---|---|
| Articles of Organization (Form LLC-1) | Secretary of State | To form | $70 |
| Initial Statement of Information (Form LLC-12) | Secretary of State | After forming | $20 |
| Annual LLC tax | Franchise Tax Board | First by the 15th day of the 4th month, then yearly | $800 |
| Biennial Statement of Information | Secretary of State | Every two years, in your registration month | $20 |
| LLC fee on California income over $250,000 | Franchise Tax Board | Yearly, if it applies | Set by income bracket |
| Name reservation, optional | Secretary of State | Before forming | $10 for 60 days |
| Certificate of Status, optional | Secretary of State | On request | $5 |
| Special handling for a hand-delivered filing, optional | Secretary of State | With the filing | $15 |
Adding the required lines, the first year comes to $890 in state charges: $70, $20 and $800. In a year with a Statement of Information due, the total is $820. In the year between, it is the $800 tax alone, unless the income based LLC fee applies.
Fees can change. Check the current amounts on the Secretary of State business entities fee schedule before you file.
Registering an LLC from another state
An LLC formed elsewhere registers with the Application to Register a Foreign Limited Liability Company, Form LLC-5, for $70 (fee schedule). Because the $800 tax applies to every LLC "doing business or organized in California", a registered foreign LLC owes it too. If the business is run from California, forming in another state does not remove these charges. You pay the other state's fees as well. Our foreign LLC registration guide explains the rules.
Costs outside the state's numbers
- Registered agent. California lets you name a resident individual or a registered corporate agent. The LLC cannot be its own agent. Paid agent services set their own prices.
- Professional advice. Attorney and accountant fees are private and optional.
- EIN. The IRS issues it for nothing: "You never have to pay a fee for an EIN," on the IRS EIN page. More in EIN for an LLC.
- City or county licences, which vary by location.
What raises the California bill
The $800 does not stop on its own. The Franchise Tax Board says the tax "will be due, even if you are not conducting business, until you cancel your LLC." An LLC left open with no activity keeps building tax, so cancel it properly if you stop. Source: Franchise Tax Board LLC page.
Skipping the Statement of Information has a cost too. The Secretary of State business entities FAQ notes that penalties are assessed by the Franchise Tax Board when an entity has not filed the required statement.
Growth is the third factor. Once California income goes above $250,000, the income based LLC fee is added to the $800 tax (Franchise Tax Board LLC page).
Compare and total it up
California is often compared with Nevada, Wyoming and Delaware. Our LLC fees by state table lines them up, and the LLC cost calculator adds the California fees over the years you choose.
To go from cost to action, see how to start an LLC in California.