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Business Formation Guide
costUpdated 2026-03-30

How Much Does an LLC Cost in California?

California LLC formation costs $70 to file Articles of Organization with the Secretary of State. All LLCs must pay an $800 annual franchise tax (due April 15), plus a $20 biennial Statement of Information filing fee. If your LLC generates over $250,000 in California-source income, you'll owe additional tiered fees ranging from $900 to $11,790. Members also pay state income tax (1%–13.3%) and self-employment tax on distributions.

Formation & Filing Fees

The initial cost to form an LLC in California is $70 to file Articles of Organization (Form LLC-1) under Cal. Corp. Code § 17702.01. Standard online processing via BizFile takes 3–5 business days.

Expedited options are available:

  • Class C: $350 (24-hour processing)
  • Class A: $500 (4-hour processing)
  • Class B: $750 (same-day, Sacramento in-person only)

No other state formation fees apply.

Annual Franchise Tax

California imposes an $800 minimum annual franchise tax on all LLCs under Cal. Rev. & Tax. Code § 17941, due April 15 each year.

If your LLC generates gross California-source receipts exceeding $250,000, you owe additional tiered fees under Cal. Rev. & Tax. Code § 17942:

  • $900 ($250K–$500K)
  • $2,500 ($500K–$1M)
  • $6,000 ($1M–$5M)
  • $11,790 ($5M+)

Biennial Reporting

You must file a Statement of Information (Form LLC-12) within 90 days of formation, then every two years. The filing fee is $20. Missing the deadline triggers a $250 penalty with no grace period and may result in suspension or forfeiture (Cal. Corp. Code § 17702.01).

Income & Self-Employment Tax

Members pay California state income tax at graduated rates of 1%–13.3% on pass-through LLC income (Cal. Rev. & Tax. Code §§ 17001–17039.6). Self-employment tax applies to member distributions. Estimated tax payments are due April 15, June 15, September 15, and January 15.

Total First-Year Cost

  • Formation filing: $70
  • Franchise tax (due April 15): $800
  • Statement of Information (due within 90 days): $20
  • Total: $890 minimum (plus state and self-employment taxes on income)

Subsequent years cost $820 minimum ($800 franchise tax + $20 biennial report).

Next Steps

File Articles of Organization online via BizFile. Register for California taxes with the Franchise Tax Board (ftb.ca.gov) and CDTFA (cdtfa.ca.gov) if you sell taxable goods or services. Budget for the $800 franchise tax and quarterly estimated tax payments to avoid penalties.

This is general information, not legal advice.