California LLC cost in 2026: the real annual numbers

California is one of the cheapest states in the country to open an LLC and one of the most expensive to keep one. The Secretary of State charges $70 to file Articles of Organization. The Franchise Tax Board then charges a minimum $800 annual franchise tax for every year the company exists, including years with zero revenue and years where the business never traded.

First year cost, line by line

• Articles of Organization filing fee: $70
• Minimum annual franchise tax: $800
• Statement of Information, due within 90 days and then every two years: $20
• Registered agent service if you do not act as your own: $100 to $300 a year
• Optional expedited filing at the counter or by request: roughly $350 extra
• Formation service if you do not file yourself: $0 to $300 plus state fees
• Attorney formation with a custom operating agreement: $800 to $2,500

A founder who files personally, acts as their own agent and skips expedited service pays about $890 in year one. A founder using a paid agent and a formation service lands closer to $1,100 to $1,400. Attorney led formation with a bespoke operating agreement runs $1,700 to $3,400 in year one.

Ongoing annual cost

After year one the recurring floor is the $800 franchise tax plus $10 a year averaged for the biennial Statement of Information. Add $100 to $300 if you pay for a registered agent. Most single member California LLCs therefore budget $810 to $1,110 a year before any accounting or tax preparation fees.

The gross receipts fee catches growing companies

The $800 minimum is a floor, not a cap. California adds a separate LLC fee once total California source income passes $250,000. It steps up at $250,000, $500,000, $1,000,000 and $5,000,000, and at the top band it adds several thousand dollars a year on top of the franchise tax. Anyone modelling a California LLC past early revenue should treat the $800 figure as a starting point.

The first year exemption and what it does not cover

California has waived the $800 minimum franchise tax for some LLCs in their first taxable year under temporary relief measures. Eligibility rules and expiry dates have changed repeatedly, so confirm the current position with the Franchise Tax Board before assuming a first year waiver applies. The $70 filing fee and the $20 Statement of Information fee are never waived.

Forming in Wyoming or Delaware does not avoid the $800

This is the most expensive mistake California founders make. If you live in California and run the business from California, an out of state LLC still has to register in California as a foreign LLC. That means a $70 registration fee, the same $800 minimum franchise tax, and a second set of fees in the state of formation. You end up paying twice for one company. Forming elsewhere makes sense for specific investor or structural reasons, not to dodge the franchise tax.

Where the money actually goes

Over five years, a typical California LLC pays $70 once and roughly $4,050 to $5,550 in recurring obligations. Formation choices affect a few hundred dollars. The franchise tax drives more than 80 percent of the total. If the company is dormant or pre revenue, the honest question is not which formation service to use but whether the entity should exist yet at all.

Compare your own numbers

Our LLC formation cost calculator runs California against every other state we track, with registered agent and expedited filing options. For the wider picture, read LLC formation costs by state.

How we estimate this

Figures are 2026 published California Secretary of State and Franchise Tax Board amounts, combined with observed market pricing for registered agent services and formation providers. Ranges are deliberately wide because provider pricing moves and state fees change. Verify current amounts with the Secretary of State and the Franchise Tax Board before you file.