Which state is cheaper for an LLC: New York or California?

Over 5 years, New York is cheaper with an estimated total cost of $988, compared to $3,525 for California, saving you approximately $2,537.

Can I register in California if I live and work in New York?

You can form an entity in California, but if your principal residence or business operations are in New York, statutory nexus rules require you to register as a Foreign LLC in New York. In New York, the foreign filing fee is $250 plus annual foreign maintenance of $9/year.

2026 Head-to-Head Statutory Comparison

New York vs California LLC

California charges an $800/yr minimum annual franchise tax; New York requires an upfront Section 206 newspaper publication ($300-$1,200).

5-Year Cost Verdict: New York saves an estimated $2,537 over 5 years.

New York Model →California Model →

Direct Side-by-Side Fee Matrix

Statutory 2026 Fee Schedules

Metric	New York	California
Initial State Filing Fee	$200	$70
Annual Report Fee & Frequency	$9 (biennial)	$20 (biennial)
Annual Franchise Tax	$25/yr	$800/yr
5-Year Estimated True Cost	$988	$3,525
Public Member Anonymity	Moderate	Public
Foreign Qualification Fee	$250 upfront ($9/yr)	$70 upfront ($820/yr)

The Reality of Forming Out-of-State

Operating in New York with a California LLC?

If you live or conduct physical business in New York and form in California, you must register as a Foreign LLC in New York. This means paying California's formation fee ($70) PLUS New York's foreign filing fee ($250) and two annual registered agent fees.