California LLC Costs: What You'll Actually Pay

Getting your LLC on file with the California Secretary of State is a single, predictable charge. You file the Articles of Organization (Form LLC-1) through the bizfile Online portal, and the state collects its $70 filing fee at that point. The form itself carries a warning worth reading twice: "LLCs may have to pay minimum $800 tax to the California Franchise Tax Board each year."

Optional formation add-ons

• Expedited processing: Standard online filings take a few business days. If you need it faster, the Secretary of State charges $350 for 24-hour handling or $750 for same-day service, online or at the Sacramento drop-off counter.
• Name reservation: If you want to hold your name before filing, an online name reservation costs $10 and lasts 60 days.
• Certified copies: If a bank or a lender wants a certified copy of your filed Articles, the state charges a small fee per copy.

None of these are required to form the LLC. The Articles filing is the only mandatory formation cost with the state.

This is the cost that makes California expensive, and the one new owners most often miss. Every LLC registered or doing business in California owes the $800 annual tax to the Franchise Tax Board on Form FTB 3522. It is due whether or not the business made a dollar of profit, and it recurs every year until the LLC cancels. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State; later years are due by the 15th day of the 4th month of the taxable year, which is April 15 for a calendar-year LLC.

The first year: $800 now, $400 for 2027 to 2029 starts

California's first-year exemption covered only LLCs formed from 2021 through 2023, so an LLC formed in 2026 owes the full $800 for its first year. SB 180, effective July 13, 2026, changes that for the next few years: an LLC whose first taxable year begins on or after January 1, 2027 and before January 1, 2030 pays $400 for that first year, then $800 a year after. If you form late in a year, you can end up owing the tax for that partial year and again shortly after for the next: a timing quirk worth discussing with a CPA.

It goes to the FTB, not the Secretary of State

This tax has nothing to do with your formation filing. It is a separate obligation to a separate agency, which is why it is easy to overlook. Mainstay Filing does not collect or pay the franchise tax; that is between you and the Franchise Tax Board.

On top of the $800 tax, California imposes an additional LLC fee once your total California income reaches $250,000. Unlike the flat $800, this fee is tiered: it starts at $900 for total California income from $250,000 to $499,999 and scales up in brackets from there. It is estimated and paid by the 15th day of the 6th month of the taxable year on Form FTB 3536.

Two things to understand about it:

• It is based on total California income, not profit. A high-revenue, low-margin business can owe the fee even in a thin year, because it keys off total income rather than what is left after expenses.
• It is in addition to the $800 tax, not instead of it. Companies past $250,000 pay both.

If your California revenue is modest, you likely only face the $800 tax. If your revenue is substantial, model the tiered fee into your budget with your accountant so it does not surprise you at tax time.

Beyond the franchise tax, a handful of smaller recurring costs come with a California LLC.

Statement of Information

California LLCs file a Statement of Information (Form LLC-12): an initial one within 90 days of formation, then every two years. The fee is $20 each time. If one is still missing 60 days after the state's delinquency notice, the penalty is $250, so the cheap filing is the one made on time. It is an informational update of your addresses, agent, and management, not a financial report.

Registered agent service

If you use a commercial agent for service of process rather than serving yourself, that is typically an annual service cost. Many owners consider it worthwhile for privacy and reliability, especially out-of-state owners who need a California address. If you form through Mainstay Filing, the agent isn't a separate line at all. It's part of the single flat yearly fee that also covers your filings.

Local licenses and permits

Most California cities and counties charge for a local business license or tax certificate, and many renew annually. If you sell taxable goods, a seller's permit from the California Department of Tax and Fee Administration comes with its own requirements. These vary by locality and industry and are separate from anything the state charges to maintain the entity.

Fictitious Business Name (if used)

If you operate under a DBA, the county FBN filing and the required newspaper publication are additional costs, and FBN registrations expire and must be renewed periodically.

Put it all together and the honest picture looks like this: a $70 one-time state filing fee to form, an $800 tax every year no matter what (or $400 in the first year if that year starts in 2027 through 2029), possibly an LLC fee from $900 up if total California income reaches $250,000, a $20 Statement of Information every two years, and any commercial agent, local license, and DBA costs that apply to your situation.

Where owners go wrong

The formation filing is the smallest and most visible cost, so it anchors people's expectations. The recurring franchise tax is larger, less visible, and easy to forget, and it is the one that actually determines whether a California LLC is worth it for a very small or dormant business. If you are forming an LLC that will not generate much income, run the math on the $800 annual tax first, because it applies regardless of activity.

What Mainstay Filing charges

We charge one flat yearly fee, and it covers everything we do: preparing and filing your Articles of Organization, serving as your agent for service of process all year, every year, and preparing and filing your Statement of Information when it comes due. There is no separate agent renewal and no one-time-only formation price: the same single fee simply renews each year. We also apply for your EIN with the IRS. The receipt card reflects what you pay us, with the state's filing charges passed through at cost. The receipt card does not include the $800 Franchise Tax Board tax: that remains between you and the FTB, and you pay it directly every year.