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

The Secretary of State charges $70 for the Articles of Organization (LLC-1) plus $20 for the first Statement of Information, but the Franchise Tax Board's $800 annual LLC tax also applies in the first year, so realistic first-year state cost is $890. Name reservation is $10 and dropping a filing off in Sacramento adds a $15 special handling fee.

Is the California Statement of Information annual or biennial for an LLC?

Biennial. The Secretary of State requires an LLC Statement of Information within 90 days of initial registration and every two years thereafter, at $20 each time. The filing window is the month your Articles were filed plus the five preceding calendar months. California corporations, by contrast, file annually.

Does a new California LLC still have to pay the $800 franchise tax in the first year?

Yes. The first-year waiver applied only to tax years beginning on or after January 1, 2021 and before January 1, 2024. An LLC formed in 2026 owes the $800 annual tax by the 15th day of the 4th month after the date the Secretary of State filed its Articles, paid with FTB 3522.

What is the penalty for not filing a California Statement of Information?

The Franchise Tax Board assesses a $250 penalty on behalf of the Secretary of State ($50 for exempt organizations), and the LLC can be suspended or forfeited. Only the Secretary of State can waive the penalty, through its Statement of Information penalty waiver request process.

LLC Costs · CA

How Much Does an LLC Cost in California?

By Edmond Hui · Fees verified July 29, 2026 against the California Secretary of State fee schedule

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

Forming an LLC in California costs $70 to file the Articles of Organization with the state, the Statement of Information costs $20 every two years, and the Annual LLC Tax (minimum franchise tax) adds at least $800 a year. That puts the first-year state cost at $880, before any registered-agent service.

Articles of Organization$70

Statement of Information$20

Annual LLC Tax (minimum franchise tax)$800/yr

First-year state cost$880

Five-year state cost$4,120

What you actually pay in California

California's Secretary of State charges only $70 for Articles of Organization (LLC-1) and $20 for the Statement of Information, but the Franchise Tax Board's $800 annual LLC tax is the real cost and it applies in year one for any LLC formed today. The Statement of Information is biennial, not annual: the first is due within 90 days of registration and later ones during a six-month window ending in the anniversary month. Missing it triggers a $250 penalty collected by the FTB plus possible suspension. First-year state cost for an LLC formed in 2026 is therefore $890 ($70 + $20 + $800), and an LLC with $250,000 or more of California income owes an extra income-based LLC fee starting at $900. Expedited filing is separately priced at $350 for 24-hour, $500 for 4-hour (preclearance required) and $750 for same-day service.

California LLC fee breakdown

Cost	Amount	How often	Charged by
Articles of Organization (LLC-1)	$70	One time	California Secretary of State
Statement of Information	$20	Every 2 years	California Secretary of State
Annual LLC Tax (minimum franchise tax) (minimum)	$800	Every year	Franchise Tax Board
Required state cost, first year	$880	—	—
Registered agent service (optional)	$50–$300	Every year	Commercial provider
Expedited processing (optional) — 24-Hour Filing Service (Class C, online or Sacramento drop-off) $350, 4-Hour Filing Service (Class A, Sacramento drop-off, requires preclearance) $500, Same Day Filing Service (Class B, received by 9:30am) $750	$350+	One time	California Secretary of State
Name reservation (optional)	$10	One time	California Secretary of State
Certificate of good standing (optional)	$5	Per copy	California Secretary of State

The Secretary of State lists Formation - Articles of Organization as "Online Only" at $70.00, with no downloadable PDF form; a request dropped off in person in Sacramento carries a non-refundable $15 special handling fee in addition to the $70.

Annual LLC Tax (minimum franchise tax): The $800 annual tax is flat and owed even if the LLC does no business, until it is cancelled. On top of it, an LLC with total California income of $250,000 or more owes an additional LLC fee: $900 at $250,000-$499,999, $2,500 at $500,000-$999,999, $6,000 at $1,000,000-$4,999,999 and $11,790 at $5,000,000 or more.

Registered agent is listed separately because it is a commercial service, not a state charge. Commercial registered-agent services, not a state charge. Range and $125 midpoint match the assumption used by /tools/llc-true-cost. Most states let you serve as your own registered agent at no cost if you have a physical in-state address. Run your own numbers in the true-cost calculator.

California LLC cost over five years

State charges only in the first column; the second adds a registered-agent service at the $125/yr market midpoint.

Period	State cost only	With registered agent
Year 1 (formation + first filing)	$880	$1,005
Each year after	$810	$935
Five-year total	$4,120	$4,745

First filing timing: The first Statement of Information is due within 90 days of the Articles of Organization being filed. Subsequent statements are biennial - for an LLC formed in July, for example, the filing period runs from the first day of February through the last day of July.

Is California expensive compared with other states?

California ranks 49th cheapest of 50 states on first-year cost — $645.47 above the $234.53 national average. On ongoing annual cost it ranks 50th.

Cheaper state	First-year cost	You would save
Montana	$35	$845
Arizona	$50	$830
Missouri	$50	$830

A cheaper filing fee elsewhere rarely saves money if you live and operate in California. Doing business here with an out-of-state LLC generally means registering it as a foreign LLC in California anyway — paying both states. See foreign qualification in California before forming elsewhere to save on fees.

California filing deadline and late penalties

Statement of Information

Frequency	every two years
Due	Due within 90 days of initial registration and every two years thereafter, filed during the applicable filing period: the calendar month in which the Articles of Organization were filed plus the immediately preceding five calendar months
Fee	$20
Late penalty	$250

The Franchise Tax Board assesses a $250 penalty on behalf of the Secretary of State for failing to file the Statement of Information on time ($50 for exempt organizations); only the Secretary of State can waive it.

Failure to file the required Statement of Information may result in penalties assessed by the Franchise Tax Board and in suspension or forfeiture of the LLC's powers, rights and privileges.

Full California annual report filing guide · Deadline calculator

Cost traps specific to California

$800 FTB annual tax applies in year one

The first-year exemption covered only tax years beginning on or after January 1, 2021 and before January 1, 2024. An LLC formed today owes $800 by the 15th day of the 4th month after its SOS filing date, more than eleven times the $70 formation fee.

Statement of Information is biennial but the first one is due in 90 days

The $20 LLC-12 is due within 90 days of registration and then only every two years, so many owners miss the initial deadline and get hit with the $250 FTB-collected penalty.

The $800 keeps running until you formally cancel

The FTB states the annual tax is due even if you are not conducting business, until the LLC is cancelled; a dormant California LLC still accrues $800 a year. Cancelling within one year of organizing via Short Form Cancellation (LLC-4/8) avoids the first-year $800.

Frequently Asked Questions

: The Secretary of State charges $70 for the Articles of Organization (LLC-1) plus $20 for the first Statement of Information, but the Franchise Tax Board's $800 annual LLC tax also applies in the first year, so realistic first-year state cost is $890. Name reservation is $10 and dropping a filing off in Sacramento adds a $15 special handling fee.
: Biennial. The Secretary of State requires an LLC Statement of Information within 90 days of initial registration and every two years thereafter, at $20 each time. The filing window is the month your Articles were filed plus the five preceding calendar months. California corporations, by contrast, file annually.
: Yes. The first-year waiver applied only to tax years beginning on or after January 1, 2021 and before January 1, 2024. An LLC formed in 2026 owes the $800 annual tax by the 15th day of the 4th month after the date the Secretary of State filed its Articles, paid with FTB 3522.
: The Franchise Tax Board assesses a $250 penalty on behalf of the Secretary of State ($50 for exempt organizations), and the LLC can be suspended or forfeited. Only the Secretary of State can waive the penalty, through its Statement of Information penalty waiver request process.

Where these numbers come from

Every fee above was checked against California's own published sources on July 29, 2026 — the California Secretary of State fee schedule, the governing statute, and where a state-level tax applies, the state tax authority. Commercial formation-service pages were not used.

The first-year total is the Articles of Organization fee plus the first year of any recurring state charge. Where a state's first report is not due until the following year, that is noted above. The five-year total is the filing fee plus five years of recurring charges, which avoids the timing question entirely. Registered-agent service is excluded from all state figures.

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