California LLC Cost: Full Fee Breakdown (2026)
A California LLC costs $70 to form - the filing fee for Articles of Organization (Form LLC-1) with the California Secretary of State. On top of that, every LLC owes an $800 annual tax to the Franchise Tax Board and a $20 Statement of Information every two years. Higher-earning LLCs also owe a graduated LLC fee starting at $900 once California income reaches $250,000. A federal EIN and a seller's permit are free.
Quick Answer
- Formation fee
- $70 - Articles of Organization (Form LLC-1), Secretary of State
- Annual tax
- $800 minimum, to the Franchise Tax Board (every year)
- Statement of Information
- $20 every two years (Form LLC-12)
- Income-based LLC fee
- $900–$11,790, if California income is $250,000 or more
- Name reservation
- $10 (optional, 60 days)
- EIN & seller's permit
- Free
What a California LLC Really Costs
The headline number for a California LLC is small - $70 to file - but the recurring cost is what makes California expensive relative to many states. Every LLC owes a minimum $800 annual tax regardless of income, so the true first-year cost is closer to $870-$890 once you add the Statement of Information. This page breaks down every fee, separates the one-time costs from the recurring ones, and shows where the income-based LLC fee kicks in. For the national comparison, see how much an LLC costs, and for the step-by-step process see how to form an LLC in California.
It helps to sort California LLC costs into three buckets. The first is a single one-time cost: the $70 formation fee. The second is a set of recurring state costs you owe every year the LLC exists - the $800 annual tax, the averaged cost of the biennial $20 Statement of Information, and the income-based LLC fee once you cross $250,000 in California income. The third is optional or situational costs - a $10 name reservation, expedited processing, a fictitious business name if you use a DBA, a local business license, or professional licenses. Only the first two buckets are mandatory for a bare-bones LLC; the third depends on how you operate. This page walks through each bucket so you can build an accurate annual budget instead of assuming the $70 filing fee is the whole story.
One-Time Formation Costs
The only mandatory one-time state cost is the $70 filing fee for the Articles of Organization (Form LLC-1), paid to the California Secretary of State. Everything else at formation is optional. You may reserve a name for 60 days for $10 before filing, and you may pay for expedited processing or certified copies if you need them. A federal EIN from the IRS is free, and drafting an operating agreement costs nothing unless you hire help.
| One-time item | Form | Fee (2026) | Agency |
|---|---|---|---|
| Articles of Organization (create the LLC) | Form LLC-1 | $70 | Secretary of State |
| Name reservation (60 days, optional) | Name Reservation Request | $10 | Secretary of State |
| Certified copy (optional) | Request form | Small per-copy fee - confirm on fee schedule | Secretary of State |
| Expedited / preclearance service (optional) | Request | Additional fee - confirm on fee schedule | Secretary of State |
| Federal EIN | IRS Form SS-4 | $0 (free) | IRS |
| Seller's permit (if selling taxable goods) | CDTFA registration | $0 (free) | CDTFA |
Because expedite, preclearance, and copy fees change and vary by service level, confirm the current amount on the Secretary of State fee schedule before relying on a figure. The mandatory number every new LLC pays is the $70 formation fee.
The $800 Annual Franchise Tax
The largest recurring cost is the $800 annual tax, California's minimum tax on every LLC organized, registered, or doing business in the state. It is administered by the Franchise Tax Board, not the Secretary of State, and it is owed regardless of income or activity - an LLC that earns nothing still owes $800 until it formally cancels. The tax is paid using FTB Form 3522. For a new LLC, the first payment is due by the 15th day of the 4th month after formation; in later years it is due by the 15th day of the 4th month of the tax year. Note that the temporary first-year exemption under Assembly Bill 85 applied only to LLCs formed in 2021 through 2023 and has expired, so LLCs formed on or after January 1, 2024 owe the $800 tax in year one.
Statement of Information ($20 Every Two Years)
California LLCs file a Statement of Information (Form LLC-12) within 90 days of forming and then every two years, at a $20 fee each time. This is a Secretary of State compliance filing, separate from the $800 tax. Missing it can bring a $250 penalty and suspension, so budget the $20 and calendar the biennial deadline. Details are in our California annual report (Statement of Information) guide.
The Income-Based LLC Fee
Higher-earning LLCs owe an extra fee on top of the $800 tax. The LLC fee applies once an LLC's total California income reaches $250,000 in a year and rises in tiers, reported to the Franchise Tax Board on Form 3536 (estimated fee) and reconciled on Form 568 (the LLC return). For 2026 the tiers are:
| Total California income | LLC fee (2026) |
|---|---|
| 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 |
The LLC fee is based on total California income, not net profit, so a high-revenue, low-margin LLC can owe a meaningful fee even in a thin year. It is separate from the $800 tax and from any income tax the members owe on their share of profits. For how the LLC is taxed overall, see California LLC tax filing.
Total Recurring Cost by Income Level
Combining the flat tax and the income-based fee gives you the true annual state cost. The Statement of Information averages to about $10 per year (since it is $20 every two years). The table shows the recurring state cost for a typical calendar-year LLC.
| California income | $800 tax | LLC fee | Annual state cost (approx.) |
|---|---|---|---|
| Under $250,000 | $800 | $0 | ~$810 |
| $250,000–$499,999 | $800 | $900 | ~$1,710 |
| $500,000–$999,999 | $800 | $2,500 | ~$3,310 |
| $1,000,000–$4,999,999 | $800 | $6,000 | ~$6,810 |
| $5,000,000 or more | $800 | $11,790 | ~$12,600 |
These figures exclude any local business license, professional license, member income tax, and self-employment tax. They are the state entity-level costs only. Licensing costs are covered in business license in California.
Cost to Close a California LLC
Closing the LLC properly stops the $800 tax from accruing. To dissolve, you file a Certificate of Cancellation (Form LLC-4/7) with the Secretary of State, which currently has no filing fee, and you must file a final return with the Franchise Tax Board. Simply abandoning the LLC does not stop the $800 tax - it keeps running with penalties and interest. The full process, including the final-year tax, is in how to dissolve an LLC in California and cost to dissolve an LLC.
Frequently Asked Questions
How much does it cost to start an LLC in California?
The Articles of Organization (Form LLC-1) filing fee is $70. You also file a $20 Statement of Information within 90 days, and every LLC owes the $800 annual tax to the Franchise Tax Board.
Does every California LLC pay the $800 tax?
Yes. The $800 tax is a minimum owed by every LLC organized, registered, or doing business in California, regardless of income, until the LLC is cancelled. It applies in the first year for LLCs formed on or after January 1, 2024.
What is the California LLC fee based on income?
Beyond the $800 tax, an LLC with California income of $250,000 or more owes a graduated fee: $900, $2,500, $6,000, or $11,790 as income rises through $250,000, $500,000, $1,000,000, and $5,000,000.
How much is the Statement of Information?
The LLC Statement of Information (Form LLC-12) fee is $20, filed within 90 days of forming and then every two years.
Is an EIN or seller's permit an added cost?
No. A federal EIN from the IRS is free and a California seller's permit from the CDTFA is free to register. The main recurring cost is the $800 tax plus any income-based LLC fee.
Related
- How much does an LLC cost? (national hub)
- How to form an LLC in California
- California annual report (Statement of Information)
- California LLC tax filing
- California registered agent
- How to dissolve an LLC in California
- Nevada LLC cost (sibling)
- How to get an EIN
Sources
- California Secretary of State - LLC Forms (Domestic) (Form LLC-1 $70; Form LLC-12 $20; name reservation $10; cancellation no fee).
- California Secretary of State - Statements of Information (Form LLC-12; 90-day and biennial filing).
- California Secretary of State - bizfile Online (online filing portal).
- California Secretary of State - Agent for Service of Process (Section 1505).
- California Franchise Tax Board - Limited Liability Company ($800 annual tax; due 15th day of 4th month).
- California Franchise Tax Board - FTB Pub. 3556, LLC Filing Information (annual tax; LLC fee tiers; Form 3536; Form 568).
- California Franchise Tax Board - Pay (Web Pay for businesses) (Form 3522 $800; Form 3536 LLC fee).
- California Legislative Information - Rev. & Tax. Code § 17941 ($800 annual tax).
- California Legislative Information - Rev. & Tax. Code § 17942 (LLC fee tiers on total income).
- California Department of Tax and Fee Administration - Permits & Licenses (free seller's permit).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - Limited Liability Company (LLC) (federal classification affecting who files the return).
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. This page is general information, not legal or tax advice. Fees and thresholds change; verify current amounts with the California Secretary of State and Franchise Tax Board before acting.