Which state is cheaper for an LLC: California or Delaware?

Over 5 years, Delaware is cheaper with an estimated total cost of $1,805, compared to $3,525 for California, saving you approximately $1,720.

Can I register in Delaware if I live and work in California?

You can form an entity in Delaware, but if your principal residence or business operations are in California, statutory nexus rules require you to register as a Foreign LLC in California. In California, the foreign filing fee is $70 plus annual foreign maintenance of $820/year.

2026 Head-to-Head Statutory Comparison

California vs Delaware LLC

Delaware is favored for venture capital investor alignment; California is the necessary domestic home for California-based physical operations.

5-Year Cost Verdict: Delaware saves an estimated $1,720 over 5 years.

California Model →Delaware Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	California	Delaware
Initial State Filing Fee	$70	$110
Annual Report Fee & Frequency	$20 (biennial)	$0 (none)
Annual Franchise Tax	$800/yr	$300/yr
5-Year Estimated True Cost	$3,525	$1,805
Public Member Anonymity	Public	High (Anonymous)
Foreign Qualification Fee	$70 upfront ($820/yr)	$200 upfront ($300/yr)

The Reality of Forming Out-of-State

Operating in California with a Delaware LLC?

If you live or conduct physical business in California and form in Delaware, you must register as a Foreign LLC in California. This means paying Delaware's formation fee ($110) PLUS California's foreign filing fee ($70) and two annual registered agent fees.