What Does an LLC Cost in California?
California's filing fee is a decoy. The real number is $890 in state charges in year one, driven by the $800 annual tax, and at least $800 every year after. Here is every line, from the Secretary of State and the Franchise Tax Board.
Year one: what you pay to exist
| Year-one cost in California | Amount |
|---|---|
| Articles of Organization (Form LLC-1), Secretary of State | $70 |
| Statement of Information (Form LLC-12), due within 90 days | $20 |
| Annual LLC tax, Franchise Tax Board (due by 15th day of the 4th month) | $800 |
| EIN from the IRS | $0 |
| Operating agreement (you write it, not filed) | $0 |
| Total state cost, year one | $890 |
That $890 is the honest year-one number for California, and almost none of it is the filing fee people shop on. A registered agent service, if you hire one instead of naming an individual, adds roughly $125 to $249 a year depending on the provider. Local business licenses are extra and vary by city.
Every year after: the cost of staying alive
| Recurring cost in California | Amount |
|---|---|
| Annual LLC tax, every year until the LLC is cancelled | $800 |
| Statement of Information, every two years | $20 in filing years |
| Additional LLC fee, only if California income reaches $250,000 | $0 for most small LLCs |
| Typical recurring total | $800 to $820/yr |
California is a pay-to-exist state. The $800 is not tied to profit: a loss-making LLC owes it, and an inactive LLC owes it until it is cancelled with the state. Budget for it as rent on the liability shield. If the business is done, cancel promptly, because the meter runs until you do.
The additional LLC fee nobody mentions at checkout
On top of the $800 tax, California charges an LLC fee scaled to the LLC's total California income, once that income reaches $250,000. Estimated and paid by the 15th day of the sixth month of the tax year, using Form FTB 3536. The Franchise Tax Board publishes the tiers:
| Total California income | LLC fee |
|---|---|
| Under $250,000 | $0 |
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
This fee is in addition to, not instead of, the $800 annual tax and the LLC's regular California income tax on its owners. It is also the reason high-revenue businesses sometimes model an S corporation election with a tax professional. The fee alone does not settle that question.
Sources, checked Nov 7, 2026
California Secretary of State, LLC forms and fees tables (domestic and foreign) and business entities FAQ at sos.ca.gov; Secretary of State, Service of Process page; California Franchise Tax Board, Limited liability companies page (annual tax, due dates, and LLC fee tiers) at ftb.ca.gov. Filing portal: bizfile Online.
Run your own version, with an optional registered agent added, in the LLC cost calculator. If you would rather a service handled the filing, the services comparison prices that honestly, renewals included.
General Information Only
LLCForming publishes general information about forming and running an LLC. It is not legal, tax, or accounting advice, and it does not create an attorney or advisor relationship. Rules vary by state and by your situation. For a decision that matters, talk to a licensed attorney or tax professional in your state.