LLC Cost in California (2026) — Filing Fees and Annual Costs

LLC Cost in California (2026)

State Filing Fee: $70 | Annual Franchise Tax: $800/year

Forming an LLC in California requires filing Articles of Organization with the Secretary of State. The filing fee is $70. California LLCs also have a Annual Franchise Tax of $800 per year.

Use our LLC Cost Calculator to estimate your total first-year cost including registered agent and optional formation services.

# LLC Cost in California (2026) — Filing Fees and Annual Costs Starting an LLC in California involves multiple costs that extend beyond the initial filing fee. Understanding these expenses upfront helps you budget accurately and avoid unexpected financial obligations down the road. ## How to Use This Calculator This calculator determines your total LLC costs in California based on several key inputs: **Required Information:** – Business start date (affects prorated annual fees) – Number of members in your LLC – Whether you need an EIN (Employer Identification Number) – If you plan to hire employees within the first year – Your expected annual gross revenue **Optional Services:** – Registered agent service (if you don’t want to serve as your own) – Operating agreement preparation – Certificate of Good Standing requests Simply enter your information in each field. The calculator automatically updates your cost breakdown as you make selections. Leave revenue fields blank if you’re unsure—the calculator will show you costs for different revenue scenarios. **Pro tip:** If you’re starting mid-year, the calculator prorates certain fees. California’s annual franchise tax and fee are due by the 15th day of the 4th month after your LLC formation, regardless of when during the year you file. ## How We Calculate This Our calculations are based on current California Secretary of State fees and regulations, updated for 2026 rates. **Mandatory Costs Include:** *Articles of Organization Filing Fee:* $70 (standard processing) or $120 (expedited 24-hour processing) *Initial Statement of Information:* $20 (due within 90 days of formation) *Annual Franchise Tax:* $800 minimum (due even if your LLC generates no income) *LLC Annual Fee:* Variable based on total income, ranging from $0 to $11,790 – $0 if total income is under $250,000 – $900 if total income is $250,000-$499,999 – $2,250 if total income is $500,000-$999,999 – $3,600 if total income is $1,000,000-$4,999,999 – $5,850 if total income is $5,000,000-$24,999,999 – $11,790 if total income is $25,000,000 or more *Statement of Information Update:* $20 (required every two years) **Optional Costs We Factor In:** *EIN Application:* Free if you apply directly with the IRS, but many services charge $50-$300 for assistance *Registered Agent:* $100-$300 annually if you hire a service (free if you serve as your own) *Operating Agreement:* $200-$800 for professional preparation (though you can draft your own) The calculator uses mid-range estimates for optional services and clearly separates mandatory from optional expenses in your results. ## What the Results Mean Your results appear in three categories: **Immediate Startup Costs** cover everything needed to legally form your LLC and begin operations. This includes filing fees, initial statement costs, and any optional services you selected. Budget for these expenses before filing your Articles of Organization. **First-Year Ongoing Costs** show additional expenses you’ll face within 12 months of formation. The major component here is California’s $800 minimum franchise tax, due by the 15th day of the 4th month after formation. If you formed your LLC in January, this payment is due by May 15th. **Annual Recurring Costs** represent your ongoing obligations to maintain good standing. Beyond the yearly $800 franchise tax, this includes the income-based annual fee (if applicable) and biennial Statement of Information updates. **Important note about the annual fee:** This fee is based on your LLC’s total income from all sources, not just California income. “Total income” means gross receipts minus the cost of goods sold, as reported on your federal tax return. The calculator also shows a “5-Year Total” projection, helping you understand the long-term financial commitment of maintaining a California LLC. ## Tips and Common Mistakes **Start with timing in mind.** California’s franchise tax is due regardless of when during the year you form your LLC. If you form in December, you still owe the full $800 by April 15th of the following year, giving you just four months of operation before the first payment. **Don’t underestimate the annual fee.** Many entrepreneurs focus only on the $800 minimum tax and overlook the additional annual fee based on income. If your LLC generates $300,000 in revenue, you’ll owe an extra $900 on top of the franchise tax. **Keep receipts for all filing fees.** These are legitimate business expenses you can deduct on your tax returns. **Consider your registered agent options carefully.** While hiring a service costs money, serving as your own registered agent means your business address becomes public record and you must be available during business hours to accept legal documents. **Budget for unexpected costs.** The calculator covers standard fees, but you might face additional expenses like amended filings ($30), certificate of good standing requests ($30), or expedited processing fees. **Common mistake:** Forgetting about the Statement of Information requirement. This $20 filing is due within 90 days of formation and then every two years thereafter. Missing deadlines can result in penalties or administrative dissolution. **Another frequent error:** Assuming the $800 franchise tax is tax-deductible like other business expenses. While it is a business expense, California doesn’t allow LLCs to deduct the franchise tax on their California tax returns. ## FAQ **Q: Can I reduce costs by serving as my own registered agent?** A: Yes, you can serve as your own registered agent and avoid the $100-$300 annual fee. However, this requires you to maintain a California street address (not a P.O. Box) where you can receive legal documents during business hours. If you move, you must update your registered agent information with the state. Many business owners find the convenience and privacy protection of a registered agent service worth the cost. **Q: Is the $800 franchise tax really required even if my LLC makes no money?** A: Yes, California requires all LLCs to pay the $800 minimum franchise tax regardless of income, activity, or profit. This tax is due by the 15th day of the 4th month after your LLC formation and annually thereafter. The only exception is for LLCs that dissolve within 12 months of formation and meet specific requirements. Even then, you’re still responsible for the first year’s payment. **Q: When exactly is the annual fee based on income due?** A: The annual fee (separate from the $800 franchise tax) is due with your LLC’s tax return by the 15th day of the 4th month after your tax year ends. For calendar-year LLCs, this typically means April 15th. The fee is based on your total income from the previous tax year. So if your 2026 total income was $400,000, you’d pay the $900 annual fee with your 2027 tax return filing.