How Much Does It Cost to Start an LLC in California? (2026 Guide)

Starting a business in California is exciting, but many entrepreneurs want to know:

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

While forming an LLC is relatively simple, there are several mandatory state fees and ongoing taxes you should understand.

Basic Cost to Form an LLC in California

The main state filing fee is:

Articles of Organization (Form LLC-1)

Filing fee: $70

This form registers your LLC with the California Secretary of State.

Additional Startup Costs

Here are the typical expenses entrepreneurs encounter when forming an LLC.

Statement of Information

Cost: $20

Due within 90 days after forming the LLC.

Registered Agent

You may act as your own registered agent.

However, professional services typically charge:

$50–$150 per year

Operating Agreement

Although not required by the state, an operating agreement is highly recommended.

Cost range:

• Free (DIY template)
• $100–$500 (legal services)

The $800 California Franchise Tax

One of the most important costs is the annual franchise tax.

All LLCs in California must pay:

$800 per year

This fee is paid to the California Franchise Tax Board (FTB).

LLC Gross Receipts Fee

If your LLC earns more than $250,000 annually, an additional fee applies.

Example:

Total Cost to Start an LLC

Typical startup costs:

Typical total startup cost:
$90 – $700+

Ongoing Annual Costs

Most LLC owners pay at least:

• $800 annual franchise tax
• Accounting or tax preparation fees
• Business licenses

Final Thoughts

Starting an LLC in California is relatively affordable compared to other business structures.

However, entrepreneurs must plan for the $800 annual tax, which applies even if the business has little or no income.

Understanding these costs helps business owners avoid surprises and plan their finances properly.