How Much Does an LLC Cost in California in 2026? Filing Fee, $800 Tax and the LLC Fee

California's LLC filing fee is one of the lowest in the country at $70. Its yearly cost is one of the highest. That gap is why so many founders are surprised: the Secretary of State charges very little to create the company, and the Franchise Tax Board then bills $800 every year whether the business earns anything or not, plus a separate fee once income passes $250,000. This guide lists every state cost for a California LLC in 2026, explains the first-year rules that changed after 2023, shows how the LLC fee tiers work, and builds first-year budgets you can copy. All figures were checked with the Secretary of State and the Franchise Tax Board in October 2026.

Quick answer

A California LLC costs $70 to form (Form LLC-1) and $20 for the Statement of Information due within 90 days. Every year it also owes the Franchise Tax Board an $800 annual tax — including the first year — so most new LLCs spend about $890 in year one.

• The first-year $800 exemption only covered tax years beginning 2021–2023; it has expired

• First $800 is due by the 15th day of the 4th month after you file

• LLC fee on top once total California income reaches $250,000: $900 to $11,790

• Statement of Information every two years: $20; missing it risks a $250 penalty

• Optional: name reservation $10, 24-hour expedite $350, same-day $750

The costs at a glance

California splits LLC costs between two agencies. The Secretary of State (SOS) handles the company's existence: formation, the Statement of Information, amendments and certificates. The Franchise Tax Board (FTB) handles the annual tax, the LLC fee and the Form 568 return. Most surprises come from the FTB side, because the SOS charges nothing ongoing except the biennial statement.

The $70 Articles of Organization

You form a California LLC by filing Articles of Organization, Form LLC-1, with the Secretary of State, normally online through bizfile Online. The fee is $70. The form asks for the LLC's name, which must end with "LLC", "L.L.C." or "Limited Liability Company"; the business and mailing addresses; whether the LLC is managed by one manager, more than one manager, or all its members; and its agent for service of process.

The agent for service of process is what other states call a registered agent. It can be an individual with a California address, including yourself, or a corporation that has filed a certificate under Corporations Code section 1505 to act as a registered corporate agent. Choosing yourself costs nothing; a commercial agent is a market cost, typically about $50 to $300 a year by our estimate from published pricing. Our California registered agent guide covers the rules in detail.

Name availability is checked only against other LLCs on the SOS records. The SOS warns that it does not check trademarks or county fictitious business names, so a name that clears bizfile can still infringe someone else's mark. If you need time between choosing a name and filing, a $10 reservation holds it for 60 days, and it cannot be renewed back-to-back by the same applicant.

Paying for speed. Routine online filings are processed in the order received; the SOS posts current processing dates on its website. If you need the LLC on a fixed date, online 24-hour expedite costs $350 and same-day costs $750, on top of the $70. A 4-hour service ($500) exists for precleared documents dropped off in Sacramento. Paper filings dropped off in person carry a $15 special handling fee.

The Statement of Information: $20 every two years

Within 90 days of filing the Articles, every LLC files a Statement of Information (Form LLC-12) for $20. After that it is due every two years, during a filing window based on the month you formed. The statement lists the LLC's addresses, its managers or members, its chief executive officer if it has one, the agent for service of process and the type of business.

Two things changed recently. From August 1, 2026, filing a Statement of Information online requires bizfile User Access for your entity, a security step the SOS added to stop unauthorized changes to business records. Set it up early rather than in the week the statement is due. And because the statement is the main way the SOS learns your current agent and address, it is also how you change agents between filing periods.

Missing the statement is costly. The SOS can impose a $250 penalty, collected by the Franchise Tax Board, and an LLC that keeps ignoring the requirement can be suspended. Reviving a suspended LLC means filing everything that is overdue and paying the penalties first, so the $20 filing is worth a calendar reminder.

The $800 annual tax — and why the first year is no longer free

Every LLC that is organized in California, registered with the SOS, or doing business in California pays an annual tax of $800 to the FTB. It is due every year until the LLC is cancelled, even if the business has no income, operates at a loss or never opens.

The first payment. You have until the 15th day of the 4th month after the date you file with the SOS to pay the first year's tax, using voucher FTB 3522. The FTB's own example: an LLC registered on June 18 owes its first payment by September 15. After that, the tax is due by the 15th day of the 4th month of each tax year, which is April 15 for a calendar-year LLC.

The expired exemption. Between 2021 and 2023 California waived the first year's tax. The FTB states that the exemption applied only to tax years beginning on or after January 1, 2021 and before January 1, 2024. Many websites still advertise a free first year. For an LLC formed in 2026, there is none.

An LLC filed with the SOS on October 9, 2026

October 9, 2026

LLC-1 filed; $70 paid

By January 7, 2027

Statement of Information due (90 days) — $20

January 15, 2027

First $800 annual tax due (for the 2026 tax year)

March 15 / April 15, 2027

Form 568 for 2026 due (multi-member / single-member owned by an individual)

April 15, 2027

Second $800 due (for the 2027 tax year)

The late-year trap. The timeline shows the problem with forming in the autumn. An LLC filed on October 9 has a short 2026 tax year (October to December), so it owes $800 for 2026 by January 15, 2027 and another $800 for 2027 by April 15, 2027 — $1,600 within three months. If you don't need the LLC until the new year, waiting saves $800.

The 15-day rule. The Form 568 booklet carves out one narrow exception. An LLC is not required to file a return and is not subject to the annual tax or the LLC fee if its tax year is 15 days or less and it did not do business in California during that period. An LLC filed on December 17 or later in a calendar year that stays dormant until January 1 can use this rule. File any earlier, or start trading in those days, and the full tax applies.

Short form cancellation. If you form an LLC and then decide not to use it, filing a Short Form Cancellation (Form LLC-4/8) with the SOS within a year of organizing means the LLC is not subject to the $800 tax for its first year, according to the FTB. There is no SOS fee for the cancellation.

Deployed military owners. For tax years 2020 through 2029, a small LLC (total California income of $250,000 or less) solely owned by a deployed member of the US Armed Forces is exempt from the annual tax for a year in which the owner is deployed and the LLC operates at a loss or ceases operation.

The LLC fee: the gross-receipts charge on top

Once an LLC's total California income reaches $250,000, it pays an LLC fee in addition to the $800 tax. The fee is a flat amount per tier, not a percentage.

California LLC fee by total California income

Total California income	LLC fee	Plus annual tax	Total
Under $250,000	$0	$800	$800
$250,000 – $499,999	$900	$800	$1,700
$500,000 – $999,999	$2,500	$800	$3,300
$1,000,000 – $4,999,999	$6,000	$800	$6,800
$5,000,000 or more	$11,790	$800	$12,590

Under $250,000

LLC fee

$0

Plus annual tax

$800

Total

$800

$250,000 – $499,999

LLC fee

$900

Plus annual tax

$800

Total

$1,700

$500,000 – $999,999

LLC fee

$2,500

Plus annual tax

$800

Total

$3,300

$1,000,000 – $4,999,999

LLC fee

$6,000

Plus annual tax

$800

Total

$6,800

$5,000,000 or more

LLC fee

$11,790

Plus annual tax

$800

Total

$12,590

What counts as income. The booklet defines "total income" as gross income plus the cost of goods sold paid or incurred in the business, attributed to California. In practice that is close to gross receipts: a retailer with $600,000 of California sales and $400,000 of cost of goods sold is in the $2,500 tier, even though its gross profit is only $200,000. Income from sales to customers outside California is assigned using the state's sales-factor rules, so an online seller with nationwide customers may fall into a lower tier than its total revenue suggests.

Paying it. The fee is estimated and paid by the 15th day of the 6th month of the tax year (June 15 for calendar-year LLCs) with form FTB 3536, and any balance is paid by the return's due date. If the estimate is short, the penalty is 10% of the underpayment. There is a safe harbor: no penalty applies if the timely estimate is at least the LLC fee owed for the previous year.

Splitting income across LLCs. The FTB can add together the income of commonly controlled LLCs if it decides they were formed mainly to reduce fees, so splitting one business into several LLCs to stay under a tier is not a reliable plan.

Form 568 and the filing deadlines

Every California LLC files Form 568, the Limited Liability Company Return of Income, even a single-member LLC that the IRS disregards. The due date depends on how the LLC is taxed. For LLCs taxed as partnerships, and single-member LLCs owned by a partnership, S corporation or LLC, it is the 15th day of the 3rd month after the tax year ends: March 15 for calendar-year filers. For other single-member LLCs, including one owned by an individual, it is the 15th day of the 4th month after the owner's tax year ends, usually April 15.

California does not require a written extension request. LLCs in good standing that are taxed as partnerships get an automatic seven-month extension to file, but the extension does not extend the time to pay. The $800 tax and any unpaid LLC fee are still due on the original dates. Preparers using software must e-file business returns.

Worked first-year budgets

Three realistic paths for an LLC formed in 2026. State figures are from the SOS and FTB; the commercial agent price is a market estimate.

Solo freelancer. Dana, a graphic designer in San Diego, files LLC-1 online in February, names herself as agent, files her Statement of Information in March and pays the first $800 by May 15. Her LLC never reaches $250,000, so her yearly cost after that is $800, plus $20 every other year.

Shop with a brand name. A Los Angeles boutique reserves its name for $10, files the LLC, and trades under a different brand, so it files a fictitious business name statement with Los Angeles County for $26 and publishes it once a week for 4 consecutive weeks; publication prices vary by newspaper. It registers for a free seller's permit with the CDTFA before opening. See our California sales tax guide for rates.

Fast launch, growing sales. A Bay Area e-commerce founder pays $350 to get the LLC filed in a day to meet a supplier deadline. By June the LLC expects about $300,000 of California income, so it pays an estimated $900 LLC fee with FTB 3536 by June 15. If sales end up at $520,000, the fee rises to $2,500 and the shortfall carries a 10% penalty ($160) unless the safe harbor applies — in a first year there is no prior-year fee, so it does not.

Add your California LLC costs to your launch budget

Registration, Legal & LicencesEquipment & Fit-outOpening InventoryLaunch MarketingMonthly Operating CostRunway Needed

One-Time Costs₹7,00,000.00

Working Capital Reserve₹10,80,000.00

Recommended Buffer (10%)₹1,78,000.00

Total Capital Required₹19,58,000.00

Open the full Startup Cost Calculator (PDF, save, compare)

Out-of-state LLCs and the doing-business test

Forming in Nevada, Wyoming or Delaware does not avoid California's tax if the business is really run from California. The FTB treats an LLC as doing business in California if it engages in any transaction for financial gain in the state, is organized or commercially domiciled in California, or has California sales, property or payroll above set thresholds. For 2025 those were $757,070 of sales, or $75,707 of property or payroll, or 25% of the total; the figures are indexed each year.

An out-of-state LLC that is doing business in California must register with the SOS as a foreign LLC and pays the same $800 tax and LLC fee. One that does business without registering, or while suspended, faces a $2,000 FTB penalty on top of the tax owed. For most Californians, a California LLC is simply the cheaper and cleaner route.

Common mistakes that cost California LLC owners money

Relying on the old first-year exemption. The most expensive myth. If your LLC was formed in 2024 or later, the first $800 is owed by the 15th day of the 4th month.

Forming in November and paying twice. An autumn formation creates a short first tax year that costs the full $800. If the business can wait, form in January, or use the 15-day rule for a late-December filing.

Thinking a dormant LLC owes nothing. The tax continues every year until you file a cancellation with the SOS and a final Form 568. Abandoned LLCs accumulate tax, penalties and interest, and eventually suspension.

Ignoring the Statement of Information. It costs $20 and the penalty for missing it is $250. Set up bizfile User Access now so you can file it online.

Confusing gross receipts with profit. The LLC fee uses total income, including cost of goods sold. A low-margin business reaches the higher tiers sooner than its profit suggests.

Your California LLC cost calendar

0/7

• LLC-1 filed: $70
• Statement of Information within 90 days: $20
• bizfile User Access set up for future statements
• First $800 (FTB 3522) by the 15th day of the 4th month after filing
• Estimate the LLC fee (FTB 3536) by June 15 if income may reach $250,000
• Form 568 by March 15 or April 15 each year
• Statement of Information every two years in your filing window

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Official links

• bizfile Online — California Secretary of StateFile LLC-1, Statements of Information, cancellations
• SOS — LLC forms, samples and fees
• SOS — Service options and expedite fees
• FTB — Limited liability companyAnnual tax, LLC fee, due dates
• FTB — 2025 Form 568 booklet15-day rule, total income, penalties
• FTB — Doing business in California

What to do next

Decide whether you need the LLC this year or can wait until January, check your name with our LLC name checker, and choose an agent using our California registered agent guide. Use the startup cost calculator to add the $800 tax to your budget, and read LLC vs S corp before your profits grow. To compare with other states, see our LLC registration guide.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in California?

The Secretary of State charges $70 for the Articles of Organization (Form LLC-1) and $20 for the Statement of Information due within 90 days. The real cost is the Franchise Tax Board's $800 annual tax, first due by the 15th day of the 4th month after you file. A realistic first-year total is about $70 + $20 + $800 = $890, before any agent or DBA.

Is the first year of the California $800 LLC tax still free?

No. The first-year exemption applied only to LLCs whose first tax year began on or after January 1, 2021 and before January 1, 2024. An LLC formed in 2026 owes the $800 annual tax for its first year, unless its first tax year is 15 days or less and it did no business in that time, or it files a short form cancellation within a year.

When is the California $800 LLC tax due?

For the first year, by the 15th day of the 4th month after the date you file with the Secretary of State, using voucher FTB 3522. After that it is due by the 15th day of the 4th month of each tax year, which is April 15 for a calendar-year LLC. It is owed every year until you cancel the LLC, even with no income.

What is the California LLC fee based on gross receipts?

On top of the $800 tax, an LLC with total California income of $250,000 or more pays an LLC fee: $900 up to $499,999, $2,500 up to $999,999, $6,000 up to $4,999,999 and $11,790 at $5 million or more. 'Total income' is gross income plus cost of goods sold, so it is close to gross receipts, not profit.

What happens if I don't file the California Statement of Information?

The Secretary of State can impose a $250 penalty, which the Franchise Tax Board collects, and continued failure can lead to suspension of the LLC. The statement is due within 90 days of registration and every two years after that, costs $20, and since August 1, 2026 needs bizfile User Access to file online.

Can I avoid the California $800 tax by forming my LLC in another state?

Usually not. An LLC is subject to the tax if it is doing business in California, which includes being commercially domiciled there or exceeding the state's sales, property or payroll thresholds. A Nevada or Wyoming LLC run from California must register as a foreign LLC and pays the same $800, plus its home state's fees. Unregistered LLCs doing business in California face a $2,000 penalty.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Limited Liability Companies — California Domestic forms and fees — California Secretary of State · accessed 9 October 2026
2. 2.Service Options — Business Entities — California Secretary of State · accessed 9 October 2026
3. 3.Name Reservations — California Secretary of State · accessed 9 October 2026
4. 4.Limited liability company — California Franchise Tax Board · accessed 9 October 2026
5. 5.2025 Limited Liability Company Tax Booklet (Form 568) — California Franchise Tax Board · accessed 9 October 2026
6. 6.Doing business in California — California Franchise Tax Board · accessed 9 October 2026
7. 7.Statements of Information — California Secretary of State · accessed 9 October 2026