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How Much Does an LLC Cost in California?
An LLC in California costs $880 in Year 1: a $70 state filing fee plus $810 in recurring state fees ($800 / yr franchise tax + $20 biennial statement) for the first year. After that it costs $810 per year, for a 5-year state total of $4,120. That makes California the 1st most expensive state to form an LLC — the national average Year 1 cost is $220 and the median is $160.
California LLC Fee Breakdown
| Fee | Cost |
| State filing fee (one-time) | $70 |
| Recurring state fees — $800 / yr franchise tax + $20 biennial statement | $810 / yr |
| Year 1 total (filing fee + first year) | $880 |
| 5-year total (filing fee + 5 × annual) | $4,120 |
How California Compares to Other States
- Rank: California is the 1st most expensive state to form an LLC — #51 of 51 jurisdictions by 5-year state cost ($4,120).
- Year 1 vs the nation: $880 in Year 1 — $660 more than the national average of $220 (median $160).
- 5-year vs the nation: $4,120 over five years, against a national average of $586 and a median of $350.
- Franchise tax: yes — California's recurring charge is a franchise tax ($800 / yr franchise tax + $20 biennial statement), already included in every total on this page.
- Cheapest in the US: Arizona at $50 over 5 years. Most expensive: California at $4,120.
California LLC Annual Fees & Franchise Tax
California charges $810 per year in recurring state fees ($800 / yr franchise tax + $20 biennial statement). Over five years that is $4,050 in recurring fees alone — $4,120 including the one-time filing fee.
Yes. California charges an LLC franchise tax, and it is already included in the numbers on this page: $800 / yr franchise tax + $20 biennial statement ($810 per year). It forms part of the $880 Year 1 total and the $4,120 5-year total.
How to Form an LLC in California (Step by Step)
- Choose a name. Pick a distinguishable name that includes "LLC" and check it is available on the California Secretary of State website before you file.
- Appoint a registered agent. Name a person or service with a physical street address in California who can receive legal mail during business hours — be your own for free, or hire one (see our registered agent guide).
- File your formation document. File the Articles of Organization (called a Certificate of Formation in some states) with the California Secretary of State and pay the $70 filing fee.
- Create an operating agreement. Not filed with the state, but it records who owns what and how the LLC is run — banks and partners will ask for it.
- Get an EIN. Apply free on the IRS website in about 10 minutes — see our EIN guide. You need it to hire, pay taxes, and open a business account.
- Open a business bank account and stay compliant. Keep business money separate (see our business bank account guide), then keep up with California's recurring fees — $800 / yr franchise tax + $20 biennial statement — so the LLC stays in good standing (see our annual reports guide).
Good to Know About California LLC Costs
The famous $800 annual franchise tax applies to almost every LLC doing business in California, plus a $20 Statement of Information every 2 years ($810/yr combined). LLCs with CA income over $250k pay an additional graduated fee on top.
File on the official California Secretary of State site →
Fees verified against official state sources — last checked October 26, 2026.
California LLC Cost FAQs
How much does it cost to start an LLC in California?
The state filing fee in California is $70. Adding the first year of recurring state fees ($800 / yr franchise tax + $20 biennial statement) brings the Year 1 state cost to $880. Optional extras — a registered agent service, an operating agreement template, or a formation service — cost extra, but the state itself charges $880 in Year 1.
How much does an LLC in California cost every year?
California charges $810 per year in recurring state fees ($800 / yr franchise tax + $20 biennial statement). Over five years that is $4,050 in recurring fees alone — $4,120 including the one-time filing fee.
Does California charge LLCs a franchise tax?
Yes. California charges an LLC franchise tax, and it is already included in the numbers on this page: $800 / yr franchise tax + $20 biennial statement ($810 per year). It forms part of the $880 Year 1 total and the $4,120 5-year total.
Do I need a registered agent for an LLC in California?
Yes. Every LLC in California must name a registered agent with a physical street address in the state who can receive legal and official mail during business hours. You can be your own agent if you live in California and are reliably available, or hire a service — typically around $125 per year — to keep your own address off the public record.
What is the cheapest way to form an LLC in California?
File it yourself on the official California Secretary of State website, linked on this page. Filing direct costs just the $70 state filing fee (plus the $800 / yr franchise tax + $20 biennial statement recurring fee) and skips formation-service markups. Use the free LLC cost calculator on this site first so you know your exact Year 1 and 5-year totals before you file.