Cost to Form an LLC in California: Fees and Annual Tax

What are the mandatory California LLC costs?

Budget $70 for Articles of Organization and $20 for the initial Statement. Separately, the annual LLC tax is generally $800; qualifying first tax years beginning 2027–2029 instead pay $400. These state charges exclude optional services and the separate income-based LLC fee.

• Articles of Organization (LLC-1) is the one-time domestic formation filing, and the Secretary of State lists its fee as $70. California Secretary of State
• The initial Statement of Information (LLC-12) costs $20 and is due within 90 days after initial registration. California Secretary of State
• The $800 annual tax is separate from Secretary of State filing fees and generally continues each taxable year until cancellation. 2026 FTB 3522

Use the cost to form an LLC in California as a state-charge ledger rather than an advertised package price. The filing fee, information statement, and annual tax answer different questions.

“Every LLC that is doing business in California or that has articles of organization accepted or a certificate of registration issued by the SOS is subject to the $800 annual LLC tax.” — California Franchise Tax Board, 2026 Form FTB 3522 instructions

This LLC-tax ledger assumes partnership or disregarded-entity taxation. An LLC taxed as a corporation follows separate corporation tax rules; verify classification and exceptions with the FTB rather than automatically applying the same total. FTB LLC classification guidance

When are California LLC fees and taxes due?

Track the payment dates separately: the initial statement follows registration, while the annual tax and estimated income-based fee follow the taxable year. A calendar-year example helps planning, but fiscal-year LLCs must use the applicable fourth- and sixth-month deadlines rather than assume April and June dates.

• File the first Statement of Information within 90 days after registration; thereafter, California requires it every two years. California Secretary of State
• Pay annual LLC tax by the 15th day of the fourth month after the taxable year begins; April 15, 2026, is the calendar-year example. 2026 FTB 3522
• Estimate and pay the separate LLC fee, if owed, by the 15th day of the sixth month; June 15, 2026, is the calendar-year example. 2026 FTB 3536

Timing changes when the cost to form an LLC in California becomes payable. Record the filing date and tax year before assigning calendar dates to the listed obligations.

The FTB says late annual-tax payments can result in a late-payment penalty plus interest. Its 2026 estimated-fee instructions describe a 10% underpayment penalty, subject to the form’s prior-year-fee safe harbor. The Secretary of State also warns that an unfiled required statement can lead to penalties and suspension or forfeiture. FTB 3522 · FTB 3536 · Secretary of State filing tips

How does California’s LLC fee work at higher income levels?

California’s separate LLC fee starts at $250,000 of Total California Income and is not simply a tax on net profit. It is additional to the applicable annual LLC tax. The FTB defines the fee base using California-attributable total income, including gross income plus qualifying cost-of-goods-sold amounts.

• No separate LLC fee appears in the published tier table below $250,000 of Total California Income, although the $800 annual tax may still apply. FTB
• Use the FTB’s total-income calculation rather than a profit-and-loss statement alone; net profit can be a different measure. Form 568 booklet
• If the LLC expects to owe the fee, estimate it by the sixth-month deadline and reconcile it with the return. 2026 FTB 3536

As revenue grows, the cost to form an LLC in California is only part of the continuing budget. The separate income-based fee can apply after formation, and its calculation is not the same as net profit.

Which California LLC costs are optional or variable?

Name reservation, expedited handling, copies, local permits, professional advice, insurance, and commercial-agent arrangements are separate from state filing charges and the applicable annual LLC tax. Their cost depends on the LLC’s facts and choices. Obtain the responsible agency’s or provider’s current amount before adding a flat allowance.

• A California name reservation is optional, lasts 60 days, and is listed at $10; the state’s Business Search is preliminary, not formal clearance. California Secretary of State
• Optional expedited filing is listed at $350 for 24-hour service and $750 for same-day service, plus underlying filing fees. California Secretary of State
• Eligible in-person filing requests can carry a $15 special-handling fee; it does not apply to mail or online requests. California Secretary of State

Before comparing the cost to form an LLC in California across providers, separate mandatory state charges from optional services and business-specific expenses. The California registration checklist covers the filing sequence.

Use Lovie’s formation-planning homepage to organize your questions and next steps, then confirm current state fees, deadlines, and eligibility with the official sources above.