California LLC Cost: $70 Filing + $800 Franchise Tax (2026)

Forming an LLC in California costs $70 to file with the Secretary of State, plus a $20 Statement of Information within 90 days, then a $800 annual minimum franchise tax to the Franchise Tax Board starting in year one. Total year-one cost: $890. Five-year cost of ownership: $4,070. California is the most expensive state for LLC ownership over time, driven entirely by the $800/yr franchise tax — not the formation fee.

Reviewed by Soft Crown Editorial Team — fact-checked against primary government sources • Last updated 2026-04-25 • 4 primary government sources cited

TL;DR

California LLCs pay $70 to the Secretary of State for the Articles of Organization (Form LLC-1) and $20 for the initial Statement of Information (Form LLC-12) due within 90 days of formation. Year 2 onwards, the Statement of Information is biennial ($20 every 2 years). The big number is the $800 annual minimum franchise tax to the California Franchise Tax Board, payable each year starting year one (the AB 85 first-year exemption that applied to 2021-2023 formations has sunset). LLCs with California-source gross receipts above $250K also owe an additional gross receipts fee on a sliding scale up to $11,790. California processes online filings in 7-10 business days standard; expedite is available at the Sacramento walk-in office for $350-$750. The state requires an operating agreement (Cal. Corp. Code § 17701.10), though it doesn’t have to be filed with the SOS.

California LLC cost breakdown (2026)

Line item	Cost	Source
Articles of Organization (Form LLC-1)	$70	sos.ca.gov
Statement of Information (Form LLC-12) — initial	$20	sos.ca.gov
Statement of Information — biennial after	$20	sos.ca.gov
Annual minimum franchise tax	$800/yr	ftb.ca.gov
Gross receipts fee (>$250K CA-source)	$900-$11,790	ftb.ca.gov
Year 1 total (no add-ons)	$890
Year 2+ ongoing	~$810	($800 + $10 amortized biennial)
5-year total	$4,070

All figures verified 2026-04-25 from primary California state sources.

Why California is so expensive

The $800 minimum franchise tax is a fixed cost, not a percentage of revenue. A California LLC with $0 revenue still owes $800 to the FTB each year. The tax was set in 1957 and has remained $800 ever since — it’s not indexed to inflation, but neither is it scaled to business size.

For comparison: a Wyoming LLC with $0 revenue owes $60/yr. Over 5 years, the gap is $4,000 ($340 vs $4,070). This is the math that drives the “form in Wyoming” pitch — and the math that gets demolished by California’s nexus rules. If you have offices, employees, or substantial sales in California, you owe the $800 regardless of formation state. Source: California Franchise Tax Board LLC guidance.

The first-year exemption under AB 85 (2020) waived the $800 for LLCs formed 2021-2023. The exemption has sunset. LLCs formed in 2024 and later owe the $800 in year one, prorated by months remaining in the tax year. We verified this directly against the FTB’s current LLC publication on 2026-04-25.

Filing steps (DIY, no service)

1. Pick a name — search availability via California’s bizfile portal. Names must end in “LLC” or “Limited Liability Company” and not conflict with existing CA entities.
2. Designate a registered agent — must have a CA street address. You can act as your own agent if you live in California.
3. File Articles of Organization (Form LLC-1) — $70 fee. File online at bizfileonline.sos.ca.gov or by mail.
4. File Statement of Information (Form LLC-12) — $20, due within 90 days of formation. Lists members, registered agent, and principal office.
5. Get a federal EIN — free at irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Required for hiring, opening a bank account, or filing partnership returns.
6. Draft an operating agreement — required by Cal. Corp. Code § 17701.10 but not filed with the state. Free templates from the State Bar of California or attorney-drafted ($400-$800).
7. Register for state taxes — sales tax permit (if selling tangible goods) via CDTFA, employer registration via EDD if hiring employees.
8. Open a business bank account — most CA banks (Chase, BoA, Wells Fargo, local credit unions) require the filed Articles, Statement of Information, EIN letter, and operating agreement.
9. File the FTB 568 LLC Tax Return — annual, due by the 15th day of the 4th month after tax year end. The $800 franchise tax is paid via this filing or the Form 3522 voucher.
10. Calendar the renewals — Statement of Information biennial, FTB 568 annual.

Online filings via bizfileonline.sos.ca.gov are processed in 7-10 business days standard. Expedite (24-hour turnaround) requires walk-in service at the Sacramento office: $350 for 24 hours, $500 for same-day, $750 for 4-hour. Source: California SOS processing times, verified 2026-04-25.

Page-unique facts

• California is the only state where the SOS filing fee ($70) is dramatically lower than the franchise tax ($800). Most states have one or the other, not both.
• California LLCs file on FTB Form 568, not Form 1065. Even multi-member partnerships file the CA-specific 568 plus the federal 1065.
• The $800 prorates for short tax years. An LLC formed November 2025 owes 2/12 × $800 = $133.33 for that 2-month sliver. Then $800 for full year 2026.
• Attorney professional services in CA require PLLC formation. Lawyers, doctors, accountants, architects, and other licensed professionals cannot use a regular LLC — they must form a Professional LLC under Cal. Corp. Code § 17701.04(e). Source: California State Bar PLLC guidance.
• CA has no first-year filing exemption in 2026. AB 85’s first-year $800 waiver covered 2021-2023 formations. Confirmed sunset; 2026-formed LLCs owe $800 in year 1.

Frequently asked questions

Is the California $800 franchise tax mandatory?

Yes — for any LLC doing business in California, including foreign LLCs (formed in another state) with California nexus. The $800 is a minimum; LLCs with CA-source gross receipts above $250,000 also owe an additional gross receipts fee on a sliding scale ($900 at $250K, ramping to $11,790 at $5M+). Source: California Franchise Tax Board LLC guidance, verified 2026-04-25.

Can I avoid California’s $800 by forming in Wyoming?

No, if you operate in California. The CA franchise tax applies to any LLC “doing business” in California — generally meaning offices, employees, or substantial sales. A Wyoming-formed LLC with CA nexus owes both: $60/yr in Wyoming + $800/yr in California + a CA foreign qualification fee ($70). The math gets worse, not better. Source: California Revenue and Taxation Code § 23101 (doing business definition).

How long does California LLC formation take?

Standard online filing via bizfileonline.sos.ca.gov: 7-10 business days. Walk-in expedite at the Sacramento office: 24-hour ($350), same-day ($500), 4-hour ($750). Mail filings: 4-6 weeks. Source: California SOS processing times, verified 2026-04-25.

Do I need to file a Statement of Information for my California LLC?

Yes. The initial Statement of Information (Form LLC-12) is due within 90 days of formation. After the initial filing, the SOI is biennial — every 2 years — for $20 each. Missing the SOI deadline triggers a $250 penalty and eventually administrative suspension by the FTB. Source: sos.ca.gov Form LLC-12 page.

Does the $800 franchise tax apply if my California LLC made $0?

Yes. The $800 minimum franchise tax is a flat floor, not a percentage of revenue or profit. A California LLC with zero gross receipts in its first full tax year still owes $800 to the Franchise Tax Board. The historic AB 85 first-year exemption (signed 2020 under Governor Newsom, applicable only to LLCs formed in 2021, 2022, or 2023) sunset on December 31, 2023. LLCs formed in 2024 and after pay $800 prorated by months active in year one, then $800 every subsequent year. Source: ftb.ca.gov LLC FTB 568 booklet, verified 2026-04-25.

Will forming a Wyoming LLC let me dodge the California $800?

No, if you live, work, or have customers in California. Cal. RTC § 23101 defines “doing business” broadly: a single California-resident manager, a California office, or more than $711,538 in California-source sales (2026 threshold) all create nexus. A Wyoming LLC operating in California must register as a foreign LLC ($70), pay the $800 California franchise tax, AND keep paying Wyoming’s $60 annual report — three layers of cost instead of one. The IRS confirms LLC residency follows nexus, not formation state. See the IRS California Small Business Resources page for federal cross-reference.

State quirk: AB 85, the franchise tax exemption that nearly was

California’s $800 minimum franchise tax has a notable historical footnote. Assembly Bill 85 (2020) waived the $800 in year one for LLCs, LPs, and LLPs formed during 2021-2023, intended as pandemic-era relief for new businesses. The exemption sunset on December 31, 2023 and was not extended despite three legislative attempts in 2024-2025. California is also unusual in pairing one of the cheapest formation fees in the country ($70) with the most expensive recurring franchise floor ($800), a structural quirk dating to the 1957 Bank and Corporation Tax Law that has never been indexed to inflation. See California Department of Tax and Fee Administration for cross-agency context.

Common mistake in California

The most expensive California LLC mistake is forgetting that the $800 minimum franchise tax kicks in immediately in year one even when the LLC has $0 revenue, no operations, and no bank account yet. Many founders form in November expecting to “start fresh in January” and discover an $800 bill (prorated to ~$133 for two months) plus a $250 SOI penalty if Form LLC-12 wasn’t filed within 90 days.

Sources

1. California Secretary of State Business Entities Forms — last verified 2026-04-25
2. California Franchise Tax Board LLC guidance — last verified 2026-04-25
3. California SOS Processing Times — last verified 2026-04-25
4. California Revenue and Taxation Code § 23101 — last verified 2026-04-25
5. IRS California Small Business and Self-Employed Resources — last verified 2026-04-25
6. IRS Publication 3402 — Taxation of Limited Liability Companies — last verified 2026-04-25

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies California LLC fees directly from sos.ca.gov and ftb.ca.gov on a quarterly cycle. Connect on LinkedIn.

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Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.