Last Updated: September 3, 2024, 2:27 pm by TRUiC Team


California LLC Cost

The minimum cost to form a California LLC is $70, which covers the processing fee for filing your Articles of Organization. However, the total cost of forming an LLC will depend on various factors, including your business needs and personal preferences.

In our California LLC Cost guide, we've detailed everything you need to know about the costs associated with both launching and maintaining a California LLC.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

How Much Does a California LLC Cost

Below is a table summarizing the main requirements and associated fees of forming an LLC in California. 

LLC Cost Summary

Requirement Fee
Articles of Organization $70-$85
Agent for Service of Process $0-$150+
LLC Name $0-$110
Statement of Information $20 (due within 90 days of LLC formation)

California LLC Filing Fee ($70-$85)

To form an LLC in California, you will need to submit the Articles of Organization with the Secretary of State. 

This costs $70 to file for both domestic and foreign LLCs, though an additional $15 is applied if you choose to file in person.

If you use an LLC formation service, the total cost will be higher as it will also include the service fee in addition to California’s state filing fee. 

The fees charged by these services can vary widely but can start from as low as $29 depending on the provider you choose and the features you need. 

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Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024.

California Agent for Service of Process ($0-$150+)

California law requires every LLC to designate an Agent for Service of Process, which is known as a registered agent in other states. 

This is a person or entity that you appoint to receive tax, legal, and government correspondence on behalf of your LLC.

While you can act as your own agent at no cost, it's often recommended to hire a professional service to avoid potential legal issues or penalties due to non-compliance. 

Acting as your own agent also means that your personal name and address will be public, which can lead to privacy concerns such as unsolicited calls.

The cost for professional agent services typically ranges from $125 to $300 annually, although some providers offer the first year free of charge.

Get a Free Registered Agent Service

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

California LLC Name ($0-$110+)

While there’s no cost for simply choosing your LLC’s name, there are potential costs associated with reserving a name or filing a Doing Business As (DBA) name (if applicable). 

Reserving a Name ($10)

To reserve a name before filing, you need to submit a Name Reservation Request Form along with a $10 fee to the Secretary of State. This will keep your name safe for 60 days.

The onus is on you to check that the name you are trying to reserve is both legally compliant and actually available to be registered. 

You can check the latter with a quick search on the California CA Secretary of State: Business Entities Search tool.

Additionally, you will want to verify that your prospective name’s corresponding domain is not already taken, as you’ll need this for your business website.

Find a Domain Now

Doing Business As (DBA) Name ($10-$100)

If you intend to operate under a different name than the one used in your formation documents, you will need to file a Fictitious Business Name Statement with the county clerk in the area that your business will be located. 

Fees for this can vary by county, though they typically range from $10 to $100.

Note: You can register multiple DBAs in California as long as you follow the proper procedures for each one.

Statement of Information ($20)

After forming your LLC, you must file a Statement of Information with the California Secretary of State within 90 days.

This document, which costs $20 to file, includes key details about your business, such as its address, management structure, and agent for service of process (among others).

You are required to file an updated Statement of Information every two years and pay the same $20 fee each time.

Optional California LLC Formation Costs

Beyond the standard formation costs, you may encounter additional fees based on your specific business circumstances. 

We’ve broken these down in more detail below. 

California LLC Operating Agreement

Although not legally required, having an Operating Agreement is good practice for most California LLCs  — even the ones with just one member.

This internal document outlines the roles and responsibilities of each LLC’s members and/or managers and can as a result both prevent and help solve disputes in the future. 

While you can hire a service or attorney to draft this document, which might cost a few hundred dollars, you can also create it yourself at no cost.

Local Business Licenses

Depending on your LLC’s location and industry, you may be required to obtain at least one local business license.

For example, in Tustin, the cost of a business license starts at $25 — though the fee you might need to pay may be significantly higher depending on your business’s activities. 

Certificate of Status

A Certificate of Status, which is often required to open a business bank account or to apply for business loans, verifies that your LLC is legally registered and in good standing with the state of California. 

This document costs $5 and can be requested online through the Secretary of State's bizfile Online portal.

Certified Copies of Business Documents 

If you need certified copies of your California Articles of Organization or other official documents, you can request them from the Secretary of State for a small fee of $5 per document. 

Just like with your Certificate of Status, requests can be made quickly and easily through the bizfile Online portal.

Ongoing Costs to Maintain a California LLC

In addition to the initial costs of forming an LLC in California, there are several ongoing expenses that you will need to account for in order to maintain your business.

LLC Franchise Tax 

California requires all LLCs to pay an annual franchise tax of $800 to the California Franchise Tax Board by the 15th day of the 4th month after the start of your LLC’s tax year.

For new LLCs, the first payment is due within four and a half months of formation, with subsequent payments also due annually on the same date.

Annual LLC Fee

In addition to the franchise tax, LLCs generating more than $250,000 in gross income must pay an additional annual fee. 

This fee starts at $900 for incomes between $250,000 and $499,999 and increases progressively up to $11,790 for incomes of $5 million or more.

You’ll need to pay this fee by the 15th day of the 6th month following the start of your LLC's fiscal year.

Registered Agent Maintenance

If you choose to hire a professional registered agent, you'll need to pay an annual fee that normally ranges between $125 and $300 depending on the provider in question and the features offered. 

While not required, hiring a professional agent is highly recommended for legal compliance and privacy protection, especially if you are a new business owner without a dedicated business address that’s separate from your home’s. 

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Ready to Get Started?

Have a look at our LLC California Guide (DIY Approach)

Let Northwest Registered Agent handle it for you ($29 + State Fees) 

California LLC vs Other States

Starting an LLC in California has unique financial considerations. While the state’s initial filing fee is relatively low at $70, California’s minimum $800 annual franchise tax is one of the highest in the country. 

Regardless, if your business will be based in California, then registering in the state is likely going to be the best option for you.

This is because attempting to register in a foreign state with more “affordable” filing and maintenance fees can actually lead to you having to comply with more than one state’s regulations, which can be both more time consuming and more expensive. 

California LLC Cost FAQ

The initial filing fee for forming an LLC in California is $70 if you file online or $85 if you file by mail. This fee covers the cost of submitting the Articles of Organization to the California Secretary of State. Besides the filing fee, California LLCs are also required to pay a minimum annual franchise tax of $800.

Yes, there can be additional costs. You may need to pay a registered agent fee, which is typically around $100 per year. If you wish to reserve your business name before filing the Articles of Organization, you'll have to pay a $20 name reservation fee.

A registered agent, known in California as an agent for service of process, is a person or business entity that is designated to receive official papers and legal notices on behalf of your LLC. The California Secretary of State mandates that all LLCs have an agent for service of process in the state. This service typically costs up to $200 per year.

Reserving a business name means that you secure the name for your LLC before actually filing your Articles of Organization. This ensures no one else can take your desired business name while you're preparing your LLC formation documents. The name reservation fee in California is $20.

An operating agreement is a document that outlines the rules and procedures of your LLC. It's not required by law in California, but having one is a good practice. It can help prevent misunderstandings by specifying member roles and responsibilities, profit sharing, and procedures for handling changes in membership.

Forming an LLC in California offers limited liability protection, meaning your personal assets are shielded from creditors if your LLC faces a lawsuit. Profits and losses from your LLC are reported on your personal tax return, avoiding double taxation. Lastly, the process of forming an LLC is relatively simple and can be done online or by mail.

The annual franchise tax is a mandatory fee for LLCs in California. The minimum amount is $800 per year, which is due even if the LLC does not conduct business or operates at a loss. This tax is separate from any income taxes your LLC may owe.

LLC formation services are companies that assist you in setting up your LLC. They handle the paperwork and submission of your Articles of Organization, can offer registered agent services, and often help with drafting operating agreements. The cost for these services can vary depending on the level of service you choose.

To minimize costs, you could handle all the filing and paperwork yourself. However, this can be time-consuming and confusing if you're not familiar with the process. Using an LLC formation service can save you time and potentially avoid errors, but it will add to the overall cost.

Article Sources

California Franchise Tax Board:
https://www.ftb.ca.gov/

IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

California Secretary of State - Business Programs:
https://www.sos.ca.gov/business-programs

SBA - Apply for Licenses and Permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - California Chamber of Commerce List:
https://www.officialusa.com/stateguides/chambers/california.html