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

Over 5 years, Nevada is cheaper with an estimated total cost of $2,020, compared to $3,525 for California, saving you approximately $1,505.

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

You can form an entity in Nevada, 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 Nevada LLC

Nevada offers strong corporate officer privacy and zero personal income tax, but has high recurring state business license fees ($350/yr).

5-Year Cost Verdict: Nevada saves an estimated $1,505 over 5 years.

California Model →Nevada Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	California	Nevada
Initial State Filing Fee	$70	$75
Annual Report Fee & Frequency	$20 (biennial)	$350 (annual)
Annual Franchise Tax	$800/yr	$0 / None
5-Year Estimated True Cost	$3,525	$2,020
Public Member Anonymity	Public	High (Anonymous)
Foreign Qualification Fee	$70 upfront ($820/yr)	$425 upfront ($350/yr)

The Reality of Forming Out-of-State

Operating in California with a Nevada LLC?

If you live or conduct physical business in California and form in Nevada, you must register as a Foreign LLC in California. This means paying Nevada's formation fee ($75) PLUS California's foreign filing fee ($70) and two annual registered agent fees.