California LLC Formation Cost

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The minimum cost to start a California LLC is $90 in state fees. The minimum cost to keep it alive every year is $820. Here is the full breakdown for 2026.

One-time formation costs

ItemCost
Articles of Organization (Form LLC-1)$70
Initial Statement of Information (Form LLC-12, due within 90 days)$20
Name reservation (optional)$10
Certified copy of Articles (optional)$5
24-hour expedited filing (optional)$350

Annual recurring costs

ItemCost
Minimum franchise tax (FTB Form 568)$800
Statement of Information (every 2 years)$20
Registered agent service (optional)$0 to $300

Income-scaled additional LLC fee

On top of the $800, California adds an LLC fee on gross receipts above $250,000 (ranges from $900 to $11,790). See California LLC taxes.

Optional professional services

  • Formation service (Bizee, Northwest, LegalZoom): $0 to $299 + state fee
  • Operating agreement template: $0 (DIY) to $200 (attorney-drafted)
  • EIN: $0 direct from IRS, never pay a third party for this

Bottom line

Year-1 minimum spend if you DIY everything: $890 ($70 + $20 + $800). Year-2 onward minimum: $800. Every other state is cheaper to maintain.

California LLC at a glance

ItemDetail
Filing officeCalifornia Secretary of State
LLC filing fee$70
Annual report$20, filed every two years
Franchise or entity tax$800 minimum annual
State personal income taxYes
Corporation filing fee (for comparison)$100

How California compares

California's LLC filing fee is $70, $30 below the national median of $100. 12 of the 51 jurisdictions (50 states and DC) charge less to file. Filing fees are only part of the picture, so the table below sets California beside five states founders often consider.

StateLLC filing feeAnnual reportFranchise or entity tax
California$70$20 every 2 years$800 minimum annual
Delaware$110$300 yearlyFranchise tax $300 LLC / variable corp
Wyoming$100$60 yearlyNone
Nevada$425$350 yearlyCommerce Tax (revenue > $4M)
Texas$300No fee yearlyFranchise tax (no-tax-due < $1.23M)
Florida$125$138.75 yearlyNone

Forming outside the state where you live and work rarely saves money. A business operating in California that forms elsewhere generally still has to register as a foreign LLC in California and pay both states' fees. Our best states for an LLC guide explains when an out-of-state filing makes sense.

Frequently asked questions

What is the cheapest way to start an LLC in California?
File Form LLC-1 yourself online through bizfile for $70 and act as your own registered agent. Total first-year minimum: $890 with the franchise tax.
Do I have to pay $800 the first year?
Yes, the AB 85 first-year exemption expired after the 2023 tax year. Every California LLC owes the $800 in its first taxable year.
Is forming in Wyoming or Delaware cheaper for a California business?
No. If you operate in California, you must Foreign-Qualify and still pay the $800 California franchise tax. You end up paying both states.

Sources & further reading

Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state. See our full disclaimer.