LLC California Cost: Average Fees Explained

Forming a California LLC takes two filings with the Secretary of State: the Articles of Organization, which create the company, and a Statement of Information, which lists its managers and addresses. Neither costs much. Most of the cost of a California LLC comes from the Franchise Tax Board (FTB), which charges every LLC an annual tax whether or not it makes money.

The state filing fees on this page come from the California SOS and were checked on Oct 11, 2026. The annual tax, income-based fee, and penalty figures come from the California FTB and were checked on Oct 11, 2026. Both agencies can change their fees, so confirm current amounts on sos.ca.gov and ftb.ca.gov. This page lists state fees only; for tax planning or choosing a business structure, consult a licensed CPA or attorney.

The Secretary of State charges these fees to form an LLC and keep its record up to date.

The Articles of Organization (Form LLC-1) cost $70 when filed online. After the LLC is formed, you file a Statement of Information for $20 within 90 days, and then every two years. If nothing has changed since your last statement, you may be able to file a Statement of No Change for $20 instead.

Don't skip the Statement of Information. The FTB notes that the Secretary of State imposes a $250 penalty if you fail to file it, which costs far more than the filing itself.

Every LLC that is doing business in California or organized there must pay an annual tax of $800 to the FTB, according to the California FTB. It applies even if the LLC had no income or was inactive for the year.

The tax is due every year for as long as the LLC exists, including the first year. The FTB sets the deadlines, and the first payment comes due early in the LLC's first tax year, so check the FTB's instructions for your dates as soon as you form the company. Late payment can add penalties and interest.

The tax continues until you formally cancel the LLC with the state. An LLC you stopped using but never canceled can keep owing the annual tax.

On top of the annual tax, LLCs with higher total California income owe an additional LLC fee to the FTB. The fee rises in brackets based on total income from California sources. LLCs below the lowest bracket shown here don't owe this fee.

The table lists each income bracket with its fee. The FTB defines what counts as total California income, and a CPA can tell you which bracket applies to your LLC. You pay this fee on top of the annual tax.

For a small LLC with income under the first fee bracket, the required state costs in year one are the Articles of Organization fee, the Statement of Information fee, and the $800 annual tax. The annual tax is by far the largest of the three.

Other costs depend on how you set up the business:

• Every California LLC needs an agent for service of process. You can serve as your own agent or hire a commercial service, which charges its own fee.
• If you do business under a name other than the LLC's legal name, you file a fictitious business name statement with your county, and county fees apply.
• Cities and counties may require a business license, with fees that vary by location and industry.

California's formation fee is low, but the annual tax makes it one of the more expensive states in which to keep an LLC running. Some owners consider forming in another state. If your LLC does business in California, though, it generally still has to register and pay California's annual tax. Talk to a CPA or attorney before choosing a state for that reason.