California LLC Cost 2026: $70 Filing Fee + $800 Franchise Tax (Full Breakdown)

California LLC cost at a glance: the state filing fee is $70 (Articles of Organization), and every California LLC owes the $800 minimum franchise tax to the Franchise Tax Board each year — even in a year it earns nothing. Add the $20 (biennial) Statement of Information and you have the three costs that apply to every CA LLC. Use the calculator below to see your own first-year and ongoing totals.

I rebuilt this page against the primary sources in June 2026 because most “California LLC cost” guides — including an earlier version of this one — repeat two errors that cost founders real money: they imply the $800 franchise tax is waived in year one, and they understate the income-based LLC fee. Both are corrected below, with the state pages they come from cited at the end. — Jordan Pierce

What you actually pay to form and run a California LLC

There are three mandatory state costs. Everything else is optional.

• Articles of Organization (Form LLC-1): $70. Filed online at bizfileOnline.sos.ca.gov. This is the only fee required to legally create the LLC.
• Statement of Information (Form LLC-12): $20 (biennial). Due within 90 days of formation, then every two years. California does not call this an “annual report,” and it is now online-only. Miss it and the penalty is $250.
• Annual minimum franchise tax: $800/year. Paid to the Franchise Tax Board (not the Secretary of State), due by the 15th day of the 4th month of your tax year. Owed regardless of income, profit, or activity.

The “first year is free” myth — and the $1,600 trap

You will see many sites say California’s $800 franchise tax is waived for your first year under AB 85. For any LLC formed in 2024 or later, that is no longer true. The AB 85 first-year waiver applied only to LLCs formed in 2021, 2022, and 2023 (FTB Publication 3556). If you are forming today, budget the full $800 for year one.

Worse, timing can double it. The first $800 is due the 15th day of the 4th month after formation; the next year’s $800 is due the following April 15. Form your LLC in October–December and both payments can land within about five months — the so-called $1,600 trap. If you do not need the LLC active immediately, a January 1 future file date avoids paying for a partial first year.

The income-based LLC fee (the one most pages get wrong)

On top of the $800 minimum tax, California charges a separate LLC fee once your total California-source income reaches $250,000 (R&TC §17942, paid on Form FTB 3536 / 568). It is based on gross receipts, not profit, so it applies even in a loss year if income clears the threshold. Below $250,000 it is $0. Here is the current schedule:

Schedule verified 2026-06-21 against FTB Form 3536 / R&TC §17942.

“Total income” here means gross receipts plus cost of goods sold attributable to California — not net profit. Enter your expected revenue in the calculator above and it will apply the correct tier from this same verified schedule.

Optional costs founders actually take on

• Registered agent: $0 if you serve as your own (your address becomes public record and you must be available in business hours), or roughly $100–$300/year for a commercial service.
• Operating agreement: $0 with a solid template, up to ~$500–$800 attorney-drafted. Not filed with the state, but California law (Corp. Code §17701.02) expects LLCs to have one.
• EIN: free directly from the IRS — never pay a third party for this.
• Name reservation: optional, $10, holds a name for 60 days before you file.

How California compares

California is cheap to start and expensive to keep. The $70 filing fee is low, but the recurring $800/year minimum tax is what makes it one of the costliest states to maintain.

One catch founders miss: if you actually operate in California, registering in Wyoming or Nevada does not save you. California requires any out-of-state LLC doing business here to register as a foreign LLC (also $70) and pay the same $800 tax. For a business based in California, a California LLC is usually the honest answer.

How to form a California LLC, step by step

1. Confirm your name. Search the Secretary of State’s business database. The name must include “LLC,” “L.L.C.,” or “Limited Liability Company.” Optional reservation is $10 for 60 days.
2. File Articles of Organization (Form LLC-1). Online at bizfileOnline.sos.ca.gov for $70. Standard processing is typically a few business days.
3. File the Initial Statement of Information (Form LLC-12). Within 90 days of formation, $20 (biennial), online only.
4. Get your EIN from the IRS. Free at IRS.gov; needed for a business bank account and to hire.
5. Plan for the $800. Mark the 15th day of the 4th month after formation. If you formed late in the year, watch the $1,600 trap above.

Frequently asked questions

Q: How much does it really cost to form an LLC in California?
A: $70 to file, plus the $20 (biennial) Statement of Information within 90 days. The big ongoing number is the $800 minimum franchise tax every year. So your true first-year out-of-pocket is roughly $90 in state filings plus $800 in tax, before any optional services.

Q: Is the $800 franchise tax waived for new California LLCs?
A: Not anymore. The AB 85 first-year waiver covered only LLCs formed in 2021–2023. Any LLC formed in 2024 or later owes the full $800 in year one.

Q: Does California require an annual report?
A: No annual report by that name. California uses a Statement of Information filed every two years ($20 (biennial)). The $800 minimum tax, however, is annual.

Q: When does the extra income-based LLC fee kick in?
A: Only when your total California income reaches $250,000. Below that it is $0; above it, it follows the schedule above, up to $11,790 at $5 million or more.

Sources and methodology

Every fee on this page is rendered from a single dated record that I verify against the primary state source. The California figures were last verified on June 21, 2026 against: the California Secretary of State business filing fee schedule and bizfileOnline.sos.ca.gov; the Franchise Tax Board LLC page for the $800 minimum tax; and FTB Form 3536 with R&TC §17942 for the income-based LLC fee schedule. State fees can change without public notice, so this page is re-checked against those sources on a recurring schedule rather than left static.

Written and maintained by Jordan Pierce, who tracks state business-formation fees for llccostcalc.com. This is general cost information, not legal or tax advice; confirm your specific situation with the FTB or a California CPA.