Cost to Form LLC in California
Quick Answer
The total cost to form an LLC in California ranges from $70 (DIY filing) to $500+ (using a formation service) in Year 1, but California’s mandatory $800 annual franchise tax means you’ll pay at least $870 in your first year regardless of revenue.
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Learn More →Total Cost: Year One
| Cost Category | DIY Route | With Service |
|---|---|---|
| State Filing Fee | $70 | $70 |
| Formation Service | $0 | $150-$400 |
| Registered Agent | $150-$300 | Often included |
| Operating Agreement | $0-$200 | Often included |
| EIN (Federal Tax ID) | Free | Often included |
| California Franchise Tax | $800 | $800 |
| Total Year 1 | $870-$1,370 | $1,020-$1,270 |
Note: The $800 franchise tax is due for the tax year in which your LLC is formed, making it effectively a Year 1 cost.
Government Filing Fees
As of April 13, 2026, California’s mandatory government fees include:
| Fee Type | Amount | Details |
|---|---|---|
| Articles of Organization Filing | $70 | Filed with California Secretary of State |
| Franchise Tax (Annual Minimum) | $800 | Due for tax year of formation |
| Processing Time | 3-5 business days | Online filing available |
California does not require name reservation fees if you file immediately, and there are no publication requirements for LLCs unlike some other states.
Optional Costs
While not required by the state, these services help ensure compliance and professional operation:
Registered Agent Service: $150-$300/year
- California requires a registered agent with a California address
- You can serve as your own registered agent for free if you have a California address
- Professional services provide privacy and ensure you don’t miss important documents
Operating Agreement: $0-$500
- California requires LLCs to have an operating agreement
- You can draft a basic one yourself using templates
- Attorney-drafted agreements cost $300-$500+ but provide better protection
Form your entity in state online — starts at $0 + state fee
Learn More →EIN (Federal Tax ID): Free
- Apply directly with the IRS at no cost
- Formation services often charge $50-$100 for this free service
Business License: Varies
- Costs depend on your business type and location
- Contact your city/county for specific requirements
Annual Ongoing Costs
California has some of the highest ongoing costs for LLCs in the nation:
Franchise Tax: $800 minimum annually
- Due even if your LLC generates no revenue
- Higher-earning LLCs pay additional fees based on gross receipts
- Due by the 15th day of the 4th month after the close of the tax year
State Income Tax: 1-13.3%
- LLCs are pass-through entities for tax purposes
- Members pay California personal income tax on their share of profits
- California has one of the highest state income tax rates in the US
Registered Agent: $150-$300/year
- If using a professional service (ongoing cost)
DIY vs. Formation Service Comparison
DIY Filing ($870 Year 1)
- File Articles of Organization yourself online
- Draft your own operating agreement
- Apply for EIN directly with IRS
- Handle registered agent duties yourself
- Best for: Simple single-member LLCs with California addresses
Formation Service ($1,020-$1,270 Year 1)
- Professional filing with error checking
- Often includes operating agreement templates
- EIN filing assistance
- May include registered agent service
- Best for: Multi-member LLCs or those wanting professional guidance
The key consideration isn’t just the formation cost—it’s California’s $800 annual franchise tax that makes the state expensive regardless of how you file.
Cheapest States Comparison
California ranks among the most expensive states for LLC formation and maintenance:
| State | Formation Fee | Annual Fee | Year 1 Total |
|---|---|---|---|
| Wyoming | $100 | $60 | $160 |
| Nevada | $75 | $350 | $425 |
| Delaware | $90 | $300 | $390 |
| Texas | $300 | $0 | $300 |
| Florida | $125 | $138.75 | $263.75 |
| California | $70 | $800 | $870 |
While California’s $70 filing fee is competitive, the mandatory $800 franchise tax makes it significantly more expensive than business-friendly states.
state registered agent service — $125/year, privacy included
Learn More →Related Guides
- How to Form LLC in California 2026: Complete Guide ($70 Fee)
- Cost to Form LLC in Mississippi 2026: $50-500 Complete Guide
- Cost to Form LLC in Washington: $200-$800 Complete Guide 2026
- How to Form LLC in Louisiana: Complete 2026 Guide
- Cost to Form LLC in Florida 2026: Complete Fee Breakdown
FAQ
How much does it cost to start an LLC in California?
The minimum cost is $870 in Year 1, which includes the $70 state filing fee and California’s mandatory $800 franchise tax. If you use a formation service, expect to pay $1,020-$1,270 total in the first year.
Do I have to pay the $800 franchise tax even if my LLC makes no money?
Yes, California requires all LLCs to pay the minimum $800 franchise tax annually, regardless of income or business activity. This fee is due for the tax year in which your LLC is formed and every year thereafter until you formally dissolve the LLC.
Can I avoid the California franchise tax by forming in another state?
If you conduct business in California, you’ll likely need to register as a foreign LLC and pay California taxes anyway. The franchise tax applies to LLCs doing business in California, regardless of where they were formed.
What’s the cheapest way to form an LLC in California?
File the Articles of Organization yourself online for $70, draft your own operating agreement, and serve as your own registered agent. However, you’ll still pay the $800 franchise tax, bringing your minimum Year 1 cost to $870.
How long does it take to form an LLC in California?
Online filings are processed in 3-5 business days according to the California Secretary of State. Expedited processing options may be available for additional fees.
Do I need a registered agent in California?
Yes, California requires all LLCs to have a registered agent with a California address. You can serve as your own registered agent if you have a California address, or hire a professional service for $150-$300 annually.
Is an operating agreement required in California?
Yes, California law requires LLCs to have an operating agreement, though it doesn’t need to be filed with the state. You can draft a basic agreement yourself or hire an attorney for a more comprehensive document.
When is the franchise tax due?
The franchise tax is due by the 15th day of the 4th month after the close of the tax year (typically April 15th for calendar year LLCs). The tax is due for the year your LLC is formed, even if it was only active for part of the year.
This information is for educational purposes only and should not be considered legal or tax advice. Consult with an attorney or accountant for guidance specific to your business situation. Data current as of April 13, 2026, but fees and requirements may change.