How Much Does It Cost to Form an LLC in California? (2026)

2026 Guide · California

How Much Does an LLC Cost in California? (2026)

California has more LLC fees than almost any other state. Here’s every cost you’ll pay — upfront, annual, and ongoing — so there are zero surprises.

Form My California LLC — $149

The Quick Answer: California LLC Costs at a Glance

Forming an LLC in California costs a minimum of $70 in state filing fees — but that’s just the beginning. California imposes an $800 minimum annual franchise tax on virtually every LLC, plus a Statement of Information fee every two years. Your true first-year cost is closer to $1,000–$1,200 when you factor in all mandatory fees.

FeeAmountWhenNotes
Articles of Organization (State Filing)$70One-time at formationRequired to legally create your LLC
LLC First-Year Franchise Tax$800Within 3.5 months of formationWaived for LLCs formed after Jan 1 in their first taxable year (see below)
Annual Franchise Tax (Year 2+)$800 minimumDue June 15 each yearHigher if LLC income exceeds $250,000
Statement of Information$20Due within 90 days of formation, then every 2 yearsLate fee: $250
Corp Nation LLC Starter$149One-timeArticles + operating agreement + EIN guidance
Annual Compliance (Corp Nation)$199/yrStarting Year 2Registered agent + compliance reminders
Registered Agent (if separate)$50–$300/yrAnnualIncluded in Corp Nation’s $199/yr plan
Name Reservation (optional)$10Before filingHolds your name for 60 days

2026 First-Year Franchise Tax Waiver: California waives the $800 franchise tax for LLCs, LPs, and LLPs in their first taxable year IF formed on or after January 1, 2021 (this waiver has been extended through the 2026 tax year). This means if you form your LLC in 2026, you do NOT owe the $800 for your first year — saving $800 immediately. You will owe it starting in Year 2.

The $800 Franchise Tax: Everything You Need to Know

The $800 annual franchise tax is California’s most notorious business cost — and the most common reason people consider forming their LLC in a different state. Here’s exactly how it works:

  • Who pays it: Almost every LLC registered in California or doing business in California
  • Amount: $800 minimum, regardless of revenue or profit. If your LLC made zero dollars, you still owe $800.
  • Due date: 15th day of the 4th month after your LLC’s fiscal year begins. For most LLCs (calendar year), that’s April 15 for Year 1, then June 15 for Year 2+.
  • How to pay: FTB Form 3522 (LLC Tax Voucher) for the $800. If your income is higher, you’ll also file Form 3536.
  • What happens if you don’t pay: Penalties of 5% per month up to 25%, plus interest. Your LLC can be suspended, losing its right to do business in California.

Higher Franchise Taxes for Higher-Income LLCs

California LLC Annual Gross IncomeAdditional LLC Fee
Under $250,000$0 (just the $800 minimum)
$250,000 – $499,999$900
$500,000 – $999,999$2,500
$1,000,000 – $4,999,999$6,000
$5,000,000+$11,790

These are additional fees on top of the $800 minimum. So a California LLC generating $300,000 in gross revenue pays $800 + $900 = $1,700 in franchise tax for the year.

Corp Nation

Form Your California LLC for $149

Corp Nation handles your Articles of Organization, custom operating agreement, and EIN guidance. Flat $149 service fee + the $70 state filing fee. No surprises.

Get Started — $149

California LLC Cost Comparison: DIY vs Corp Nation vs Competitors

MethodUpfront CostWhat You GetHidden Costs
DIY (file yourself)$70 state fee onlyYou figure it outYour time, mistakes, no operating agreement
Corp Nation Starter$149 + $70 = $219Articles + OA + EIN guidanceNone. $199/yr for ongoing compliance.
LegalZoom Basic$0 + $70Articles filedRA $299/yr, OA $99, EIN $79 — adds up fast
ZenBusiness Starter$0 + $70Articles filedRA $199/yr, lots of upsells
Incfile/Bizee$0 + $70Articles filedRA $119/yr, compliance upsells

Ongoing Annual Costs for a California LLC

  • $800 minimum franchise tax — non-negotiable, every year, regardless of revenue
  • $20 Statement of Information — due every 2 years (odd years for LLCs formed in odd years, even years for even years)
  • $199/yr Corp Nation compliance — registered agent + all deadline tracking
  • Accountant/tax prep — $500–$2,000/yr depending on complexity
  • Business license — varies by city/county, typically $50–$500/yr

Total minimum annual cost to maintain a California LLC: $800 franchise tax + $20 biennial SOI + $199 Corp Nation compliance = $1,019/year at minimum. Budget for this before you form. California is not cheap to operate in — but for access to the world’s 5th largest economy, most entrepreneurs say it’s worth it.

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Free California LLC Formation Checklist

State fees, deadlines, the $800 franchise tax calendar, and every step to stay compliant. Free instant download.

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Corp Nation handles every step — articles filed same-day in most states, operating agreement included, registered agent covered. $149 flat + state fee.

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Frequently Asked Questions

How much does it cost to form an LLC in Llc?

The state filing fee for a Llc LLC varies. On top of the state fee, Corp Nation charges $149 flat — registered agent included for year one. See the complete cost breakdown on our Llc LLC page.

Are there ongoing costs for a Llc LLC?

Yes — annual report fees (most states), registered agent fees ($0 if you’re your own, $99–$299/year for a service), and any state franchise or minimum taxes.

Is a Llc LLC worth the cost?

For any business generating real revenue, yes. The liability protection alone justifies the cost. One lawsuit without an LLC could cost far more than the formation fee.