How Much Does an LLC Cost in California?
California requires a $70 filing fee to form an LLC, but that’s just the beginning. When you factor in the mandatory $800 annual franchise tax, Statement of Information fees, and other requirements, your first-year costs will be significantly higher.
This guide breaks down every fee you’ll encounter when forming a California LLC, from the basic filing cost to ongoing annual expenses. We’ll also show you why using a professional formation service often costs less than going the DIY route.
California LLC Filing Fees Breakdown
California requires online-only filing for LLC formation. Here’s every fee you might encounter:
Core Formation Fees
Articles of Organization: $70 (required)
This is California’s base filing fee to form your LLC. Unlike many states, California only accepts online filings for new LLCs.
Statement of Information: $20 (required within 90 days)
California requires this filing within 90 days of formation, then every two years thereafter. This isn’t an “annual report” in the traditional sense, but serves a similar function.
Key Point: California is one of the few states that requires a mandatory follow-up filing within 90 days of formation. Budget for this $20 fee as part of your startup costs.
Optional Services and Additional Fees
Name Reservation: $10 (optional)
Reserve your preferred LLC name for 60 days while you prepare your filing documents. Not required, but useful if you need time to gather paperwork.
Expedited Processing: Not available
California doesn’t offer expedited processing for LLC formations. All filings are processed in 5-7 business days.
Certificate of Status: $5
Also called a Certificate of Good Standing, this document proves your LLC exists and is current with state requirements.
Other Common Fees
DBA (Doing Business As): $10-$100
County-specific fees if you want to operate under a different name than your registered LLC name.
Foreign LLC Registration: $70
If you formed your LLC in another state but want to do business in California, you’ll pay this registration fee.
Dissolution: Free
California doesn’t charge a fee to dissolve your LLC, though you’ll need to file final tax returns.
Source: California Secretary of State Fee Schedule, verified March 2025
The Hidden Cost: California’s $800 Annual Franchise Tax
Here’s what catches most new LLC owners off-guard: California charges an $800 annual franchise tax to every LLC, regardless of income or activity level. This tax is due for your first year even if you never conduct any business.
The franchise tax is due by the 15th day of the 4th month after your LLC is formed, then annually by April 15th thereafter. For most LLCs formed in January, this means the first payment is due by April 15th of the same year.
Important: This $800 fee applies even if your LLC makes no money. Factor this into your budget as a fixed annual operating cost.
LLCs with gross receipts over $250,000 pay additional fees ranging from $900 to $11,790 based on total California income.
Total First-Year California LLC Costs
DIY Formation Cost
- Articles of Organization: $70
- Statement of Information (within 90 days): $20
- Annual franchise tax: $800
- Registered agent (if you hire one): $100-$300
- EIN from IRS: Free
Total DIY cost: $890-$1,190
Professional Formation Service Cost
Most formation services include valuable extras that offset their fees:
- Service provider fee: $0-$350
- State filing fee: $70
- Registered agent (1 year included): $0-$300 value
- Operating agreement template: Included
- EIN filing service: Often included
- Annual franchise tax: $800
- Statement of Information: $20
Total service cost: $890-$1,240
DIY Formation
- State filing fee: $70
- Name reservation: varies
- EIN from IRS: Free
- Registered agent: you (must be available during business hours)
- Operating agreement: write your own
You handle all paperwork, compliance tracking, and serve as your own registered agent.
With Northwest Registered Agent
- State filing fee: $70
- Formation service: $39
- Registered agent (1 year): Included free
- EIN filing: Included
- Privacy protection: Included
- Compliance reminders: Included
Professional filing, free registered agent, privacy protection, and compliance support.
Ready to form your California LLC with professional help? Form your California LLC →
Why Use a Formation Service in California
California’s LLC formation process has several unique requirements that make professional help valuable:
Complex Filing Requirements
California’s online-only filing system can be confusing for first-timers. Professional services handle the technical details and ensure your paperwork is submitted correctly the first time.
Registered Agent Requirement
Every California LLC must maintain a registered agent with a California address during business hours. You can serve as your own registered agent, but most business owners prefer to hire a professional service for privacy and convenience.
Professional registered agents cost $100-$300 annually, and many formation services include the first year free.
Statement of Information Reminder
California’s unique 90-day Statement of Information deadline catches many new LLC owners by surprise. Formation services typically send reminders to help you stay compliant.
Operating Agreement Templates
While California doesn’t legally require an operating agreement, having one protects your limited liability status and clarifies member responsibilities. Formation services typically include professionally-drafted templates.
Best California LLC Formation Services
Here are the top-rated services for forming a California LLC:
Premium Services
Northwest Registered Agent: $39 + state fees
Same-day filing, includes registered agent service, and excellent customer support. Best for businesses that need fast, reliable service.
Budget-Friendly Options
ZenBusiness: $0 + state fees
Free formation service with optional add-ons. Processing takes 2-3 weeks standard, or 1-2 days with rush service.
Bizee: $0 + state fees
Next-business-day filing and user-friendly dashboard. Good balance of speed and affordability.
LegalZoom: $0 + state fees
Established provider with basic formation services. Processing takes 7-10 business days.
Additional Business Setup Costs
Beyond LLC formation, you’ll likely need these additional services:
Business Banking
Keeping business and personal finances separate is crucial for maintaining your LLC’s liability protection. Look for banks that offer free business checking accounts and understand the needs of small LLCs.
Need business banking that works for LLCs? Try Bluevine’s free business checking →
Business Insurance
While an LLC provides personal asset protection, you still need business insurance to protect against operational risks, property damage, and potential lawsuits.
Protect your California LLC with proper coverage. Get a Next Insurance quote →
Accounting Software
California’s complex tax requirements make good bookkeeping essential. Choose software that can handle multi-member LLCs and California-specific tax forms.
Simplify your LLC accounting and tax prep. Start your FreshBooks free trial →
Ongoing Annual Costs
After formation, your California LLC faces these recurring costs:
- Annual franchise tax: $800 minimum (due April 15th)
- Statement of Information: $20 every two years
- Registered agent service: $100-$300 annually
- Professional tax preparation: $500-$2,000 (optional but recommended)
Budget approximately $1,000-$1,300 annually for basic compliance costs.
Money-Saving Tips
Avoid EIN Filing Scams
The IRS provides Employer Identification Numbers (EINs) completely free. Never pay a third-party service for something the government provides at no cost.
Time Your Formation Strategically
Since California’s $800 franchise tax is prorated by the month, consider timing your formation to minimize first-year tax liability. LLCs formed in December only owe 1/12th of the annual tax.
Compare Total Value, Not Just Price
A “free” formation service that charges $200 for registered agent service may cost more than a premium service that includes everything. Calculate total first-year costs when comparing options.
Frequently Asked Questions
Can I form a California LLC myself?
Yes, California allows self-filing through their online portal. However, you’ll still need to handle registered agent requirements, obtain necessary permits, and stay current with ongoing filing obligations.
How long does California LLC formation take?
Standard processing takes 5-7 business days. California doesn’t offer expedited processing for LLC formations.
Do I need a California address to form an LLC?
Your registered agent must have a California address, but LLC members can live anywhere. If you don’t have a California address, you’ll need to hire a professional registered agent service.
What happens if I don’t pay the $800 franchise tax?
California will assess penalties and interest on unpaid franchise taxes. Eventually, they may suspend your LLC’s rights to conduct business in the state.
Can I convert my existing business to a California LLC?
Yes, California allows conversions from other business structures. Stock corporations can convert to LLCs for a $150 fee.
Ready to start your California LLC? Our comprehensive California LLC formation guide walks you through the complete process, or learn more about California LLC tax requirements and registered agent options.
This information is for educational purposes only and does not constitute legal or financial advice. Filing fees and requirements change : always confirm current fees with your state’s Secretary of State office.