How much does an LLC cost in California?
$70 to file, then $800 a year to keep. Below: the exact deadlines, what happens if you miss them, and the costs California charges that the comparison tables leave out.
CA California state filing fees — US only
Fees compiled August 27, 2026 · state detail verified August 26, 2026
To form
$70
one-off
To keep
$800
per year
First year
$870
50 of 51 cheapest
Compare California against any other state →
What you pay, and when
| You file with | California Secretary of State, Business Programs Division |
|---|---|
| The document | Articles of Organization (Form LLC-1) |
| Filing fee | $70 |
| Processing | Usually a few business days online; paper filings take considerably longer. |
| Recurring filing | Statement of Information (Form LLC-12) |
| Recurring fee | $800 · Annual |
| Deadline | Within 90 days of formation, then every two years during your anniversary month. The $800 franchise tax is separate and is due annually, by the 15th day of the 4th month of your tax year. |
| If you are late | A $250 penalty for a late Statement of Information. Unpaid franchise tax accrues penalties and interest, and the FTB can suspend the LLC — a suspended LLC cannot legally do business or defend itself in a California court. |
| Registered agent | California calls it an "agent for service of process". You can act as your own if you have a physical California street address; it becomes public record. |
| State income tax | California taxes LLC profit as personal income on a graduated schedule, on top of the $800 franchise tax. It also charges an additional LLC fee once California-source gross receipts exceed $250,000 — see below. |
The cost over time
The filing fee is the number everyone compares. It is almost never the number that matters — you pay it once, and then you pay the recurring fee for as long as the company exists.
| If you keep it for | California | Cheapest state (Arizona) | Difference |
|---|---|---|---|
| 1 year | $870 | $50 | +$820 |
| 3 years | $2,470 | $50 | +$2,420 |
| 5 years | $4,070 | $50 | +$4,020 |
| 10 years | $8,070 | $50 | +$8,020 |
State fees only. Excludes registered agent, formation services, publication where required, and local licences.
Where California sits nationally
California ranks 50 of 51 on first-year cost and 51 of 51 on ongoing cost, against a national median first year of $175. The cheapest state is Arizona at $50; the most expensive is Massachusetts at $1,000.
| State | Filing | Per year | Year 1 |
|---|---|---|---|
| Tennessee | $300 | $400 | $700 |
| Nevada | $425 | $350 | $775 |
| California you are here | $70 | $800 | $870 |
| Massachusetts | $500 | $500 | $1,000 |
Should you form in California?
If you live and work in California, form here. The $800 is unavoidable either way, and forming elsewhere just adds a second state's fees on top. If you do not live here, California is one of the most expensive states in the country to hold an LLC, and the cost is completely insensitive to whether the business makes money.
What the comparison tables miss
The $800 is due even at a loss, even at zero activity
The franchise tax is a privilege tax, not an income tax. It is owed for the privilege of the LLC existing in California — whether you invoiced a dollar or not, whether you turned a profit or a loss, whether you traded at all. A dormant LLC someone formed "just in case" and forgot about still accrues $800 a year, and the Franchise Tax Board will pursue it. If you are not using an LLC, formally dissolve it rather than letting it sit.
The first-year waiver has expired — this catches people out
Between 2021 and 2023 California waived the $800 for an LLC's first year. That waiver lapsed, and LLCs formed from 2024 onward owe the $800 in year one like any other. A large amount of advice published during the waiver years is still online and still says the first year is free. It is not.
Above $250,000 in receipts there is a second, separate fee
On top of the $800, California charges a gross receipts fee based on California-source revenue: $900 at $250,000, $2,500 at $500,000, $6,000 at $1,000,000 and $11,790 at $5,000,000. It is assessed on gross receipts, not profit, so a high-revenue low-margin business can owe it while barely breaking even. Our calculator models the $800 base only.
Forming in Wyoming or Nevada does not get you out of it
This is the single most common expensive mistake in this state. If you live in California and run the business from California, California considers you to be doing business here regardless of where the paperwork was filed. You must register the out-of-state LLC as a foreign LLC in California — which means California's $800 plus the other state's fees, two sets of filings, and two registered agents. You have doubled the cost to save nothing.
Costs this page does not include
- Registered agent — typically $50–$300 a year if you do not act as your own.
- Formation services — $0–$300 one-off. You can file directly with the state yourself.
- Local business licences — many cities and counties require their own, separately from the state.
- An EIN — free from the IRS. Anyone charging for one is charging for a ten-minute form.
- Foreign registration in every other state where you actually do business.
An LLC does not reduce your federal tax
Worth restating on every one of these pages, because so much of the marketing implies otherwise. A single-member LLC is a disregarded entity federally: the same Schedule C, the same self-employment tax, an identical return to being a sole proprietor. What it buys is liability protection, which may well be worth the fees — but that is a different thing from a tax saving.
The election that actually reduces tax is S-corp status, which is separate from being an LLC and generally only pays off above roughly $80,000 of profit. You can model that with the S-corp vs sole proprietor calculator, and see what California leaves you with using the take-home pay calculator.
Sources
Fees change, sometimes mid-year. Everything here was verified August 26, 2026, but confirm the current figure with the California Secretary of State, Business Programs Division before you file. This is a comparison tool, not a quote, and it is not legal or tax advice.