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

Over 5 years, Florida is cheaper with an estimated total cost of $875, compared to $3,525 for California, saving you approximately $2,650.

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

You can form an entity in Florida, 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 Florida LLC

Florida has no state personal income tax and no franchise tax, saving high earners significantly compared to California's statutory burdens.

5-Year Cost Verdict: Florida saves an estimated $2,650 over 5 years.

California Model →Florida Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	California	Florida
Initial State Filing Fee	$70	$125
Annual Report Fee & Frequency	$20 (biennial)	$139 (annual)
Annual Franchise Tax	$800/yr	$0 / None
5-Year Estimated True Cost	$3,525	$875
Public Member Anonymity	Public	Public
Foreign Qualification Fee	$70 upfront ($820/yr)	$125 upfront ($139/yr)

The Reality of Forming Out-of-State

Operating in California with a Florida LLC?

If you live or conduct physical business in California and form in Florida, you must register as a Foreign LLC in California. This means paying Florida's formation fee ($125) PLUS California's foreign filing fee ($70) and two annual registered agent fees.