California LLC Cost in 2026

Last updated: 2026-10-07

California has the lowest filing fee of any major formation state — and by far the highest ongoing cost. This guide breaks down the verified numbers: the $70 filing fee, the $20 biennial Statement of Information, the $800 annual franchise tax, and what moves your total. llcformation.io/ is an independent private service — not a government agency.

The California LLC filing fee: $70

To form an LLC in California you file Articles of Organization (Form LLC-1) with the California Secretary of State. The state filing fee is a flat $70 — one of the lowest in the country.

That number is misleading on its own, because California pairs the cheap filing with the most expensive upkeep of any state in this group: an $800 annual franchise tax due every year, on top of the Statement of Information. If your decision is cost-driven, read this whole page before choosing California.

Read the full California LLC guide for the step-by-step formation process.

Full California LLC cost breakdown

Every verified cost line, first year and ongoing:

At formation (mandatory):

• State filing fee (Articles of Organization, Form LLC-1) — $70
• EIN (Employer Identification Number) — $0 if you apply directly with the IRS

Ongoing (mandatory):

• California annual franchise tax — $800 per year, paid to the Franchise Tax Board. The first-year exemption that applied to LLCs formed in 2021–2024 no longer applies to new formations, so your first year is $800 too
• Statement of Information — $20, filed with the Secretary of State: first within 90 days of formation, then every two years

Optional extras:

• Registered agent service (optional, if you hire one) — pricing to be confirmed; contact us on WhatsApp for a quote
• Operating agreement — not filed with the state; drafted privately (a one-time cost if you hire help)
• DBA / fictitious business name statement — required at the county level if you operate under a name other than your LLC's legal name
• Seller's permit / business licenses — local permits carry their own fees depending on city and county

First-year mandatory total: $870 ($70 filing + $800 franchise tax), plus the $20 Statement of Information in the first 90 days — so $890 in year one before any extras. Every year after: $800 + $20 biennial statement.

What makes your California LLC total higher or lower

What moves your California LLC total up or down:

Lower:

• Form where you actually operate. If you live in California, a foreign-formed LLC still owes the $800 California franchise tax once registered in California — so forming elsewhere does not avoid it, and you pay two states' fees instead.
• Get your own EIN. The IRS issues EINs free; do not pay someone hundreds of dollars just for the number.
• File the Statement of Information on time. It is cheap ($20) and the consequences of missing it are not.

Higher:

• The $800 franchise tax is unavoidable. It is owed even with zero income — there is no revenue threshold below which it disappears.
• Employees and physical presence trigger payroll registration and workers' compensation obligations.
• Local licenses in California cities can be substantial — check your city and county early.
• Fictitious business name filings and renewals if you use a DBA.
• DIY errors — a rejected filing means refiling and repaying the $70.

"Cheap state" myths — an honest look at California

California is the textbook case for "cheap to form, expensive to own":

• Myth: California is cheap because the filing fee is only $70. Reality: at $890 in year one and $800+ annually, California is the most expensive state for LLC upkeep in this group.
• Myth: the first-year franchise tax exemption still applies. Reality: the exemption covered LLCs formed in 2021–2024. New formations now owe the $800 from year one.
• Myth: form in Wyoming or Delaware to dodge California costs. Reality: if you live or do business in California, you must register as a foreign LLC in California and pay the $800 anyway — on top of the other state's fees.
• Myth: income tax rates matter less than the $800. Reality: California's graduated individual income tax (1%–12.3%, plus a 1% surcharge on income over $1M) applies to LLC pass-through income on top of everything else.

Choose California because your business is actually in California — not because $70 sounds cheap.

Our service fee vs. government fees

When you work with llcformation.io/, your total has two clearly separated parts:

1. State government fees — paid to the California Secretary of State and the Franchise Tax Board (for example, the $70 filing fee and the $800 franchise tax). These are set by the state, and we never mark them up.
2. Our service fee — our charge for preparing your documents, handling the filing, acting as your point of contact, and guiding you through each step. Pricing to be confirmed — contact us on WhatsApp for a quote.

See our pricing page for the full breakdown. Optional services such as EIN assistance, an operating agreement draft, or registered agent service are quoted separately and always labeled clearly — never mixed into the government fee.

Ready to form your California LLC? Reach us on WhatsApp at +92 314 9150035 or visit our contact page.

Frequently asked questions