A California LLC costs a minimum of $800 a year in state tax, plus a $70 filing fee to form it and $20 every two years to keep the Secretary of State’s records current. Once your California income reaches $250,000, an additional tiered fee stacks on top. Those are the core California LLC fees, and they apply whether or not the business makes a dollar.
What You Pay to Form the LLC
Formation starts with Articles of Organization (Form LLC-1) filed with the Secretary of State. The filing fee is $70, submitted online through the bizfile portal.1California Secretary of State. Limited Liability Companies (LLC) – California
If you want to hold a name while you finish your paperwork, a Name Reservation Request locks it in for 60 days for $10.2California Secretary of State. Business Entities Fee Schedule It’s optional.
Standard mail filings can take several weeks. If you need faster processing, the Secretary of State offers expedited handling at the Sacramento office: $15 for drop-off priority, $350 for 24-hour turnaround, $500 for 4-hour (drop-off only, pre-clearance required), and $750 for same-day if received by 9:30 a.m.3California Secretary of State. Service Options – Business Entities Those fees come on top of the $70 and are non-refundable even if the filing is rejected.
After the state approves your LLC, you’ll want an Employer Identification Number from the IRS. The EIN is free directly from the IRS, and the agency specifically warns against third-party sites that charge for it.4Internal Revenue Service. Get an Employer Identification Number
The $800 Annual Minimum Tax
The largest recurring California LLC fee is the $800 annual tax paid to the Franchise Tax Board. It’s a flat charge for the privilege of existing as an LLC in California, owed whether the business earned revenue, had customers, or ever opened at all.5Franchise Tax Board. Limited Liability Company It keeps accruing every year until you formally cancel with the Secretary of State. Stopping operations doesn’t end it. Filing a “final” tax return doesn’t end it either.6California Legislative Information. California Revenue and Taxation Code 17941
California briefly waived this tax for LLCs in their first year if they formed between January 1, 2021, and January 1, 2024. That exemption has expired. LLCs formed in 2024 or later owe the full $800 in their first taxable year.7Franchise Tax Board. FTB Pub 3556 – Limited Liability Company Filing Information
When the $800 Is Due
For a new LLC, the first payment is due by the 15th day of the fourth month after your Articles of Organization are filed. Form on January 10, and the payment is due by May 15. In later years, it’s due by the 15th day of the fourth month of your taxable year, which is April 15 for calendar-year filers. You pay using FTB Form 3522 (LLC Tax Voucher), either through the FTB’s Web Pay system or by mail.5Franchise Tax Board. Limited Liability Company
The $800 is not prorated. Form on December 1 and you still owe the full amount for that tax year.
The Tiered Fee on Total Income
Once your LLC’s California income reaches $250,000, a second annual charge stacks on top of the $800:8California Legislative Information. California Revenue and Taxation Code 17942
- $250,000 to $499,999: $900
- $500,000 to $999,999: $2,500
- $1,000,000 to $4,999,999: $6,000
- $5,000,000 or more: $11,790
At the top tier, that means $12,590 to the Franchise Tax Board every year before any income tax on profit.
What Counts as “Total Income”
This calculation is not based on profit. California defines “total income” for LLC fee purposes as gross income plus the cost of goods sold.7Franchise Tax Board. FTB Pub 3556 – Limited Liability Company Filing Information So a retailer with $600,000 in California sales and $350,000 in inventory costs still has $600,000 in total income for fee purposes and lands in the $2,500 tier. The cost of goods gets added back in, not deducted.
You estimate and prepay this fee by the 15th day of the sixth month of your current tax year (June 15 for calendar-year filers) using Form 3536.9Franchise Tax Board. 2025 Instructions for Form FTB 3536 Estimated Fee for LLCs If your tax year ends before that date, the fee is due with your annual return instead.
The Biennial Statement of Information
Every California LLC files a Statement of Information (Form LLC-12) with the Secretary of State every two years, along with a $20 fee.10California Secretary of State. Instructions for Completing the Statement of Information (Form LLC-12) It updates your principal office address, agent for service of process, and manager or member information.
Your first Statement of Information is due within 90 days of formation. After that, filings occur every two years during a six-month window tied to your original registration month. Miss the deadline and the Secretary of State assesses a $250 penalty, and the LLC can be suspended or forfeited.5Franchise Tax Board. Limited Liability Company A suspended LLC loses its authority to do business in California, meaning it can’t enforce contracts or defend itself in court until the suspension is cleared.
What Late Payment Costs
The Franchise Tax Board charges stacking penalties on late payments of the $800 tax or the income-based fee. The base penalty is 5% of the unpaid amount, plus 0.5% for each month or partial month it stays unpaid, up to 40 months.11Franchise Tax Board. FTB 7268 LLC Limited Liability Company Collections Information On the $800 annual tax, that’s $40 up front and $4 per month. On a $6,000 fee, it’s $300 up front and $30 per month.
Fall far enough behind and the FTB can suspend or forfeit the LLC. Reviving a suspended LLC requires paying all back taxes, fees, and penalties before the FTB will lift the suspension.12California Secretary of State. Statements of Information Filing Tips The separate $250 Statement of Information penalty can sometimes be waived if you show a reasonable explanation.
How to Stop the $800 Clock
The $800 annual tax keeps accruing every year the LLC exists on the Secretary of State’s records, so closing properly matters. To cancel a domestic LLC, file a Certificate of Cancellation (Form LLC-4/7). There is no filing fee for cancellation.13California Secretary of State. LLC Certificate of Dissolution, Certificate of Cancellation
On the FTB side, you file a final Form 568, check the “Final Return” box, and pay any outstanding taxes and fees for the final year. Filing the final return without also canceling through the Secretary of State does not stop the $800.5Franchise Tax Board. Limited Liability Company
One shortcut is worth knowing. If you cancel within one year of organizing, you can file a Short Form Cancellation (Form LLC-4/8) and avoid the $800 tax for that first tax year entirely. That helps if you formed an LLC and quickly realized the business wasn’t going to work.
Foreign LLCs and Other Costs
An LLC formed in another state that does business in California must register here by filing Form LLC-5 (Application to Register a Foreign Limited Liability Company), with a $70 fee.14California Secretary of State. Form LLC-5 Application to Register a Foreign LLC Once registered, a foreign LLC owes every California obligation a domestic LLC does: the $800 annual tax, the tiered fee on California-sourced income over $250,000, the biennial $20 Statement of Information, and a California agent for service of process.7Franchise Tax Board. FTB Pub 3556 – Limited Liability Company Filing Information Forming in Nevada or Wyoming to dodge the California fees doesn’t work if you actually operate here; you end up paying in both states.
Beyond state charges, most LLCs face local costs too. Cities and counties usually require their own business license or permit, with annual fees that vary by municipality and business type. If you use a commercial registered agent instead of serving as your own, plan on roughly $50 to $300 a year for that service. None of these go to the state, but they belong in an operating budget.
One requirement that caused a lot of confusion recently, Beneficial Ownership Information reporting under the Corporate Transparency Act, no longer applies to domestic companies. As of March 2025, FinCEN revised its rules so that only entities formed under foreign law and registered to do business in the U.S. must file BOI reports.15FinCEN.gov. Beneficial Ownership Information Reporting A California-formed LLC has no BOI filing obligation.