Business Formation / LLC California

How Much Does It Cost to Start an LLC in California?

Forming an LLC in California involves several initial and ongoing expenses. Understanding these costs is crucial for budgeting and ensuring compliance with state requirements.

📝 Initial Formation Costs

• Articles of Organization – $70
  This is the mandatory filing fee to officially register your LLC with the California Secretary of State. 

• Statement of Information – $20
  Due within 90 days of filing your Articles of Organization, this form provides essential details about your LLC. 

• Registered Agent Service – $0 to $300/year
  You can act as your own registered agent at no cost. Alternatively, hiring a professional service typically ranges from $100 to $300 annually.

• Operating Agreement – $0 to $500+
  Though not legally required, it's advisable to have an operating agreement to outline the management structure of your LLC. You can draft one yourself or seek legal assistance.

• EIN (Employer Identification Number) – FREE
  An EIN is necessary for tax purposes and can be obtained at no cost from the IRS.

🔁 Ongoing Costs

• Annual Franchise Tax – $800/year
  All California LLCs are required to pay an annual franchise tax of $800 to maintain good standing. This fee is due by the 15th day of the 4th month after your LLC is approved. 

• Additional LLC Fee (if applicable) – $900 to $11,790/year
  If your LLC's total income from California sources is $250,000 or more, you must pay an additional fee based on your income level. 

• Business License (If Applicable) – Varies by City/County
  California does not have a general statewide business license requirement. However, depending on your business type and location, you may need to obtain local licenses or permits.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially be responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization