California LLC Cost: Filing Fee, Annual Fees and 5-Year Total
Forming an LLC in California costs $70 in state filing fees and then $810 a year to keep it active ($10 in filing fees plus a $800 state tax). California's estimated five-year state costs of $4,110 are 1127% above the 51-jurisdiction median of $335.
Checked against official state sources (October 2026) · Last verified: October 29, 2026 · Sources
What an LLC costs in California
| Item | Amount | Notes |
|---|---|---|
| Formation filing fee | $70 | One time |
| Recurring state filing / report fee | $10/yr | Statement of Information, $20 every two years (the $800 annual LLC tax is listed separately as a state tax) |
| State tax / mandatory annual charge | $800/yr | Annual LLC tax (Franchise Tax Board). Owed every year, starting with the formation year (conditions below). |
| Year-one cost | $870 | Formation fee + any year-one extra + the first year's state tax |
| Estimated 5-year state costs | $4,110 | Formation + year-one extras + 4 years of filing / report fees + 5 years of the state tax; ranks 51st cheapest of 51 |
The five-year figure counts state government fees and, where one applies, the separate mandatory annual state tax shown above. It assumes a single-member LLC owned by an individual with little or no income. It excludes registered agent services, formation-service fees, publication costs, local business licenses, income-based state taxes (income, gross-receipts, B&O, sales) and any optional extras. How we calculate it.
State tax you owe on top of the filing fees
California charges a separate $800 a year state tax or charge on top of the filing-office fees: Annual LLC tax (Franchise Tax Board). Owed every year the LLC is registered or doing business in California, even with no income, until the LLC is cancelled. A separate LLC fee of $900 to $11,790 applies only if California-source income is $250,000 or more. We count it in the year-one, annual and five-year totals above and in the rankings.
Verified details
- Articles of Organization (LLC-1): $70.
- Initial Statement of Information (LLC-12) is due within 90 days of filing the articles; the fee is $20, then due every two years.
- The $800 annual LLC tax applies to LLCs formed in California; the temporary first-year exemption covered only tax years beginning Jan 1, 2021 through Dec 31, 2023. The tax is generally due by the 15th day of the 4th month of the tax year (Form FTB 3522).
- LLCs with higher California income also owe a gross-receipts fee; see the FTB page.
- Annual LLC tax: $800 a year for every LLC doing business or organized in California. It is due even if the LLC is not conducting business, until you cancel the LLC.
- The first-year exemption covered only tax years beginning Jan 1, 2021 through Dec 31, 2023. A single-member LLC is subject to the annual tax even though it is disregarded for federal tax.
- The $800 is due by the 15th day of the 4th month after the tax year begins (first year: the 15th day of the 4th month after filing with the Secretary of State), with LLC Tax Voucher FTB 3522.
- LLC fee (separate from the tax) applies only above $250,000 of California income: $900 ($250,000 to $499,999), $2,500 ($500,000 to $999,999), $6,000 ($1 million to $4,999,999), $11,790 ($5 million or more).
Annual reports and upkeep
California filing cadence: Statement of Information every two years. Statement of Information, $20 every two years (the $800 annual LLC tax is listed separately as a state tax). Missing filings can lead to late fees and, eventually, administrative dissolution, so put the dates in a calendar. See annual reports and franchise taxes explained.
How to form an LLC in California
- Check the name. Search the California business records on the Secretary of State / filing office site to confirm your LLC name is available and includes an LLC designator.
- Pick a registered agent. Every state requires a registered agent with a physical street address in the state. You can serve as your own agent if you live in California and are reachable during business hours, or hire a commercial agent. Registered agent guide.
- File the formation document. The state filing fee is $70. Use the state's online filing portal where available; paper filing is slower.
- Write an operating agreement. Most states do not require you to file one, but banks and partners typically ask for it, and it sets ownership and decision rules. Operating agreement basics.
- Get an EIN. The IRS issues EINs for free through its online application. Beware of sites that charge for it.
- Open a business bank account and calendar the deadlines. Put the statement of information every two years filing dates in a calendar so the LLC stays in good standing.
Want someone else to handle the filing in California?
A formation service files the paperwork for a fee on top of the state fee and often includes a first year of registered agent service. It saves time, but you can file directly with the state for the state fee alone. Compare DIY and services.
See a formation service (partner link) Sponsored
Living or operating outside California?
You can form an LLC in California even if you live elsewhere, but if you actually do business in your home state you will usually also have to register the LLC there as a foreign LLC and pay that state's fees, so you may pay twice. In Texas, for example, an out-of-state LLC transacting business pays $750 to register. See forming an LLC in a state other than your own.
Compare California with similar-cost states
| State | Formation | Annual | 5-yr total |
|---|---|---|---|
| Massachusetts | $500 | $500 | $2,500 |
| Rhode Island | $150 | $450 | $2,350 |
| Delaware | $110 | $400 | $2,110 |
| Tennessee | $300 | $400 | $2,000 |
Head-to-head: California vs Texas · California vs Florida · California vs New York · California vs Delaware · California vs Wyoming · California vs Nevada · California vs New Mexico · California vs Georgia
Frequently asked questions
How much does it cost to start an LLC in California?
The state filing fee is $70. Add a registered agent if you do not serve as your own, plus any local licenses.
What is the annual cost of an LLC in California?
Statement of Information, $20 every two years (the $800 annual LLC tax is listed separately as a state tax). California also charges a $800 annual state tax (Annual LLC tax (Franchise Tax Board)). That is about $810 per year in state costs in total.
Do I need a registered agent in California?
Yes. California requires every LLC to maintain a registered agent with a physical address in the state. You may act as your own agent if you meet the state's requirements.
Do I need an operating agreement in California?
Most states do not make you file one, but you should have one. Check California's LLC statute and ask your bank what it requires. We do not give legal advice.
Is California cheap compared with other states?
California's estimated five-year state costs of $4,110 are 1127% above the 51-jurisdiction median of $335.
Sources
- California official filing site: www.sos.ca.gov
- CA SOS: business entity forms
- CA SOS: Statement of Information tips
- CA FTB: limited liability company
- CA FTB: single member LLC
Fees change. Confirm the amount on the state's official page before you file.
Fee data: official state government pages and statutes (checked October 28–29, 2026); sources are linked on each state page. See our methodology. Not legal or tax advice.