California LLC Formation Cost
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The minimum cost to start a California LLC is $90 in state fees. The minimum cost to keep it alive every year is $820. Here is the full breakdown for 2026.
One-time formation costs
| Item | Cost |
|---|---|
| Articles of Organization (Form LLC-1) | $70 |
| Initial Statement of Information (Form LLC-12, due within 90 days) | $20 |
| Name reservation (optional) | $10 |
| Certified copy of Articles (optional) | $5 |
| 24-hour expedited filing (optional) | $350 |
Annual recurring costs
| Item | Cost |
|---|---|
| Minimum franchise tax (FTB Form 568) | $800 |
| Statement of Information (every 2 years) | $20 |
| Registered agent service (optional) | $0–$300 |
Income-scaled additional LLC fee
On top of the $800, California adds an LLC fee on gross receipts above $250,000 (ranges from $900 to $11,790). See California LLC taxes.
Optional professional services
- Formation service (Bizee, Northwest, LegalZoom): $0–$299 + state fee
- Operating agreement template: $0 (DIY) to $200 (attorney-drafted)
- EIN: $0 direct from IRS — never pay a third party for this
Bottom line
Year-1 minimum spend if you DIY everything: $890 ($70 + $20 + $800). Year-2 onward minimum: $800. Every other state is cheaper to maintain.
Frequently asked questions
What is the cheapest way to start an LLC in California?
File Form LLC-1 yourself online through bizfile for $70 and act as your own registered agent. Total first-year minimum: $890 with the franchise tax.
Do I have to pay $800 the first year?
Yes — the AB 85 first-year exemption expired after the 2023 tax year. Every California LLC owes the $800 in its first taxable year.
Is forming in Wyoming or Delaware cheaper for a California business?
No. If you operate in California, you must Foreign-Qualify and still pay the $800 California franchise tax. You end up paying both states.
Sources & further reading
Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state. See our full disclaimer.