LLC TrueCost
Reviewed 2026 tax rule

California LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $70. Ongoing annual report fee: $20 (biennial). Franchise tax: $800/yr minimum.

Step 1 Before LLC Formation • Official State Registry

Check if your LLC name is taken on official California database

Every LLC name must be legally distinguishable on state records. Perform a free corporate name lookup on the official California Secretary of State (bizfile California) registry before submitting your $70 Articles of Organization.

Search California Registry (.gov)
2026 Statutory Fee Guide • Verified State Department Records

How Much Does an LLC Cost in California?

California LLC Mandatory and Ongoing Fees Schedule (2026)
Fee ComponentStatutory CostFrequencyDue Date / RequirementRecipient Entity
Articles of Organization (Filing Fee)$70One-timeUpon LLC formationCalifornia Secretary of State (bizfile California)
Periodic Annual / Biennial Report$20biennialDue Every 2 years by end of anniversary month (Statement of Information)California Secretary of State (bizfile California)
State Franchise Tax / Entity Fee$800/yrAnnualAnnual tax scheduleState Tax Department
Registered Agent Service$0 (Self) or $39–$125AnnualContinuous requirementAppointed agent / Commercial service
Operating Agreement & Federal EIN$0 (Free)One-timeInternal record / IRS issuanceInternal Company Record / IRS
Initial Statement of Information (Form LLC-12)$20One-timeStatutory publication periodCounty designated publishers
Total Minimum Initial Formation$90 (State statutory fees to open LLC)
Statutory Department: California Secretary of State (bizfile California)
Rule source · checked 2026-09-25

California LLC 5-Year Cost Model

CA

Choose a state and assumptions. Your five-year estimate updates instantly.

Projection2026–2030
Measures5 taxable years
Accounting basisLiability incurred
Initial: $70
Approval speed: 3-5 business days online•Public Privacy: Public
If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

Future years assume today's reviewed rates remain unchanged. Historical estimates are not enabled because older rules have not been fully verified.

California Tax Rule: The standard $800 annual LLC tax applies in the first year for a typical LLC formed in 2026. The broad 2021-2023 first-year exemption has expired. Additional LLC fees apply when California total income reaches $250,000; special exceptions are outside this estimate.
Service purchase is optional
Deciding where to incorporate?

This estimate covers liabilities incurred in five taxable years (2026–2030), even when payment is due later.

Rules: ca-llc-annual-tax-2026.1

Future years use an unchanged-current-law assumption. Income tax, legal advice, penalties, and unselected optional services are excluded.

2026 setup cost
$929

Initial formation fee ($70) + publication + registered agent

Annual Maintenance
$849 /yr avg

Biennial ($20 every 2 yrs) + franchise tax

5-Year Estimated CostModeled items only
$4,325(~$72/mo)

Estimated liability for the selected inputs and disclosed scope in California.

Five taxable years by cost category(Click any year to inspect)

Select a year to inspect its included liabilities and applicable tax due date.

Inspecting: Year 1 ($929)
State Formation & Expedited
Base Entity Tax
Revenue-Based / Conditional Fee
Annual / Biennial Reports
Special Mandates (Publication, etc.)
Registered Agent Compliance
Home State Foreign Qualification

Tax year 2026 included items

Total: $929
Tax liability due: During 2026 (see state deadline)
State Filing$70
Base Entity Tax$800
Conditional Fee$0
Annual Report$0
Special / Pub$20
Registered Agent$39
Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings
$70
2% of 5-yr budget
Base Entity Taxes
$4,000
92% of 5-yr budget
Annual / Biennial Reports
$40
1% of 5-yr budget
Registered Agent Service
$195
5% of 5-yr budget
Publication / Mandates
$20
0% of 5-yr budget
Founder Cost-Reduction Tip

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California LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the California Secretary of State (bizfile California).

Official State Portal (.gov)
Annual Report Due DateEvery 2 years by end of anniversary month (Statement of Information)Frequency: BIENNIAL
Normal Turnaround3-5 business days onlineExpedited: +$350
Public Record PrivacyPublicRegistered agent protects personal address
State Personal Income Tax1% to 13.3% (highest in US)LLC pass-through profits flow to owners
Mandatory Formation Requirement

Initial Statement of Information (Form LLC-12)

Must be filed within 90 days of formation ($20 fee).

Estimated Out-of-Pocket Expense:$20

California Franchise Tax & Business Privilege Tax Rules

The standard $800 annual LLC tax applies in the first year for a typical LLC formed in 2026. The broad 2021-2023 first-year exemption has expired. Additional LLC fees apply when California total income reaches $250,000; special exceptions are outside this estimate.

Reviewed rule: ca-llc-annual-tax-2026.1 · effective from tax year 2024 · checked 2026-09-25Standard LLC estimate. Special statutory exceptions are not evaluated.
Official tax source
Revenue ThresholdDescription / State Fee Assessment
$250,000+CA LLC Fee for Gross Revenue $250k - $499,999: $900
$500,000+CA LLC Fee for Gross Revenue $500k - $999,999: $2,500
$1,000,000+CA LLC Fee for Gross Revenue $1M - $4,999,999: $6,000
$5,000,000+CA LLC Fee for Gross Revenue $5M+: $11,790

Advantages of a California LLC

  • Massive local market and VC ecosystem
  • Large local market and established business ecosystem

Drawbacks & Hidden Costs

  • $800 annual LLC tax generally applies from the first taxable year
  • Additional fee on gross revenue above $250k
  • Strict foreign qualification enforcement

Founder Pro-Tip for California

Even if you form a Delaware or Wyoming LLC, if you live or do business in California, you MUST register as a Foreign LLC in CA and pay the $800/yr anyway!

Step-by-Step California LLC Formation Checklist (2026)

1
Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the California Secretary of State (bizfile California) registry.

2
Appoint a California Registered Agent

Must have a physical street address in California (no P.O. boxes) to receive official service of process during regular business hours.

3
File Articles of Organization ($70 State Fee)

Submit electronically to the California Secretary of State (bizfile California). Approval is typically granted within 3-5 business days online.

4
Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

5
Maintain Ongoing Legal Good Standing (Every 2 years by end of anniversary month (Statement of Information))

Submit the biennial report with the $20 fee to prevent automatic forfeiture or late fee assessments.

California LLC Cost FAQ

Common questions about forming and maintaining an LLC in California.

How much does it cost to start an LLC in California?

The state filing fee to form an LLC in California is $70, paid to the California Secretary of State (bizfile California) when you file your Articles of Organization. With a registered agent service ($39–$125/yr) and the mandatory Initial Statement of Information (Form LLC-12) ($20), expect to pay approximately $129 in your first year.

What is the California LLC filing fee for 2026?

The California LLC filing fee is $70. This is a one-time fee paid to the California Secretary of State (bizfile California) to register your Articles of Organization. Expedited processing is available for an additional $350. Normal processing time is 3-5 business days online.

What are the annual fees for an LLC in California?

California charges a biennial report fee of $20, due Every 2 years by end of anniversary month (Statement of Information). Additionally, California imposes a franchise tax of $800/year minimum. The standard $800 annual LLC tax applies in the first year for a typical LLC formed in 2026. The broad 2021-2023 first-year exemption has expired. Additional LLC fees apply when California total income reaches $250,000; special exceptions are outside this estimate.

How much does it cost to maintain a California LLC per year?

The annual cost to maintain a California LLC includes the biennial report fee ($20), the state franchise/entity tax ($800/yr minimum), and a registered agent ($39–$125/yr). Over 5 years, the estimated total cost is $4,325.

Does California have a franchise tax for LLCs?

Yes. California imposes a franchise tax on LLCs: The standard $800 annual LLC tax applies in the first year for a typical LLC formed in 2026. The broad 2021-2023 first-year exemption has expired. Additional LLC fees apply when California total income reaches $250,000; special exceptions are outside this estimate. The minimum annual franchise tax is $800.

Can I form an LLC in California if I live in another state?

Yes, you can form a domestic LLC in California regardless of where you live. However, if your principal business operations are in a different state, you will also need to register as a Foreign LLC in that state. In California, foreign LLC registration costs $70 plus $820/year in ongoing fees — often resulting in paying double.

Source: California Secretary of State (bizfile California) • Updated 2026View our methodology →

Compare California with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Multi-State Comparer