Los Angeles, California LLC Cost (2026)
State filing $70 · $800/yr franchise tax · $20biennial report · Year-1 total: $890 · 5-year cost: $4,130
By Aissam Baidi · Reviewed against www.sos.ca.gov · Verified 2026-05-14
How much does an LLC cost in Los Angeles, California? Forming an LLC in Los Angeles costs $890 in year one and $810/year ongoing (5-year total: $4,130). The state-level fee is $70 for the Form LLC-1 (Articles of Organization), paid to the California Secretary of State. On top of that, Los Angeles adds 6 city-specific fees covering local business licenses and any zoning/occupational permits. The Los Angeles metro has a population of 12,799,100, median household income of $76,135, and a cost-of-living index of 173.3 (US average = 100). Standard California processing takes about 21 business days; expedite for $350 extra. Sourced from finance.lacity.gov, verified 2026-05-14.
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Local context: doing business in Los Angeles
Los Angeles layers a mandatory Business Tax Registration Certificate on top of California's $800 annual franchise tax, meaning most LLCs face a gross-receipts based city tax even in the first year of operation. The Small Business Exemption can zero out the city tax for very small operators, but the registration filing itself is still required, so total annual maintenance cost for a profitable LA LLC typically runs $820 plus the gross-receipts tax tier.
Los Angeles-specific business fees
- California LLC Filing Fee (Articles of Organization): A one-time $70 fee paid to the California Secretary of State to form the LLC.
- California Annual Franchise Tax: A flat $800 minimum franchise tax due each year to the Franchise Tax Board, payable by the 15th day of the 4th month after formation and every year thereafter (first-year waiver no longer applies after 2024).
- California Statement of Information: $20 every two years filed with the Secretary of State.
- City of Los Angeles Business Tax Registration Certificate (BTRC): Required for nearly all businesses operating in the city. The tax is based on gross receipts and ranges roughly from $1.01 to $5.07 per $1,000 of gross receipts depending on Fund Class. Renewal is due annually by February 28.
- Los Angeles Small Business Exemption: Businesses with worldwide gross receipts of $100,000 or less may qualify for a full exemption from the BTRC tax but must still file the renewal each year to claim it.
- Los Angeles County Business License (Unincorporated/Regulated Industries): Certain regulated activities (food handling, vehicle for hire, entertainment, etc.) require a separate county license from the Treasurer and Tax Collector with fees that vary by industry.
Top industries in Los Angeles
- Professional, Scientific, & Technical Services
- Health Care & Social Assistance
- Information (Entertainment & Media)
State-level cost (applies to all of California)
Because LLC formation is a state-level filing, the base $70 fee applies regardless of which California city you choose. Ongoing maintenance is $20 per biennial, the same in every city. California also charges a $800 franchise tax annually, again statewide. See the full California LLC cost breakdown for state filing fees, annual reports, franchise tax, and registered-agent options.
What city-level fees apply on top of state filing
On top of the state filing, Los Angeles businesses typically encounter a few city-level cost layers that don't appear in California's SOS fee schedule. The most common are a city or county business license (annual, $25-$500 depending on activity and gross receipts), a zoning permit if you operate from a commercial address, professional or occupational licenses for regulated industries, and any sales tax registration if you sell taxable goods or services. Some metros also impose a gross-receipts tax that kicks in above a revenue threshold, and many require a doing-business-as (DBA) filing with the county clerk if your operating name differs from the LLC's legal name.
For most Los Angeles founders, the practical year-1 budget includes the California state filing ($70), a registered-agent service if you don't want your home address public ($100-$150/year), an EIN from the IRS (free, takes 10 minutes online), a Los Angeles business license, and a starter operating agreement (free SBA template or $99-$200 paid, or $400-$1,500 attorney-drafted for multi-member LLCs with profit splits). Bookkeeping software (QuickBooks/Wave/Xero, $0-$30/month) and a business bank account round out the operational stack.
The number that varies most by city: registered-agent service price (commercial agents compete on price in major metros, often discounting first-year rates), and the hourly rate for a CPA or business attorney if you choose paid help. Los Angeles's cost-of-living index runs at 173.3 (US average = 100), which is a reasonable proxy for local professional service rates.
FAQ, common questions for Los Angeles LLCs
How much does an LLC cost in Los Angeles, California?
Forming an LLC in Los Angeles costs $890 year-1 and $810/year ongoing. The state-level fee is $70 for the Form LLC-1 (Articles of Organization), paid to the California Secretary of State. Los Angeles-specific layers like business licenses and zoning permits add $25-$500 on top depending on activity.
Do I need to register my LLC with the city of Los Angeles after filing with the state?
Yes, in nearly all cases. Even though the LLC entity is registered at the state level, Los Angeles requires any business operating within city limits to obtain a local business license, register for any city-collected taxes (sales, occupational, gross receipts), and comply with zoning rules. Check Los Angeles's official business portal for the specific license forms.
Can I form my LLC in another state and operate from Los Angeles?
Technically yes, but you'd then have to "foreign qualify" the LLC in California, paying a second filing fee and keeping a registered agent in both states. For founders who actually live and work in Los Angeles, that almost always costs more than just forming in California directly. The exception is non-resident founders with no US presence using privacy-friendly states like Wyoming or New Mexico.
How long does LLC formation take if I'm in Los Angeles?
California's standard processing applies regardless of city, about 21 business days. Expedited filing for an extra $350 can compress this to 24-48 hours. Los Angeles's city business license adds another 1-3 weeks after the state-level LLC is approved.
What's the year-1 budget for a Los Angeles LLC including city fees?
For most Los Angeles founders, year-1 totals roughly $1090-$1690 depending on choices: $70 state filing, $0 EIN (free from IRS.gov), $0-$150 registered agent service, $50-$500 Los Angeles business license, $0-$200 operating agreement template, and any zoning/professional license fees. Cost-of-living index here runs at 173.3 (US average = 100), a reasonable proxy for local CPA/attorney rates.