California LLC Costs – Summary
Take a look at the common LLC costs in California. Remember that costs may differ for your business in some areas.
| Common LLC Costs in California | |
| LLC filing fee | $75 ($70 state fee + $5 certified copy) |
| Statement of Information (every 2 years) | $20 |
| Business license | Varies by city or county |
| Registered agent (required) | $0 if you serve yourself, $50–$300 a year for a service |
| Reserve business name (optional) | $10 |
| Filing a DBA (optional) | Varies by county (e.g., $26 in Los Angeles County), plus newspaper publication |
| Operating agreement (strongly recommended) | $0–$1,000 |
| Annual tax | $800 ($400 for the first year if your first tax year begins in 2027–2029) |
Setting up an LLC can be a confusing process. There are a lot of steps required in California to do so. Though it is one of the best things you can do for your new California business, it is necessary to work through the process properly, avoiding any missteps along the way. The best way to do that is to understand the entire process, including all the costs related to the process.
How much will starting an LLC in California cost? There are a few different costs likely throughout the process. While establishing an LLC can be difficult and expensive, knowing what to do or using an LLC formation service can help eliminate at least some of that frustration. The costs paid vary significantly from one state to the next. Here’s a look at what you can expect to pay in California for an LLC establishment.
General costs when forming a California LLC
Making the decision to form an LLC is the first step. Once you realize the benefits of doing so, you then need to go through several steps under California law that govern the process. Here is a short look at what the process entails and the costs that are typically a part of that process. Keep in mind that there’s more to it than just this information.
Naming reservation fee
One of the first things you need to do is name your LLC, which may be different from the name you are operating under now. There is no cost for a name search, but this is a step you need to work through to ensure that the name you select is, in fact, available to you. The California business entity search is available on the Secretary of State website.
The name you choose must comply with California’s requirements. It must include “limited liability company” or some abbreviation of it (like LLC or L.L.C.), and you cannot include any words that could be confusing, such as words that imply your business is related to the government.
Once you determine your name, you can then reserve it. That means you get 60 days to move forward with your LLC arrangements. You need to take the steps necessary to obtain your name and register your LLC in that timeframe.
There is a filing fee for this service. In California, a name reservation costs $10, and you file it online through bizfile Online on the Secretary of State’s website.
Also, consider the need to complete a “doing business as” (DBA) in California. This is a fictitious business name. That is, you may want to operate your business under a different name from that which you are registering as your LLC name. To do this, first search your county’s fictitious business name records. You must file a DBA in California within 40 days of first doing business under that name.
What makes it a bit more confusing is that DBAs are governed by state law, but you file them with your county. Look for your county clerk’s website to do this. Fees vary by county (for example, $26 in Los Angeles County), and you also have to publish the statement in a local newspaper once a week for four weeks, which adds to the cost.
It is important to ensure this process is completed properly. If you are unsure how to do so, call your county clerk’s office for more information and guidance.
Filing fee for articles of organization
Articles of Organization is the form that needs to be filed to complete an LLC registration in California. You can file it online through the California Secretary of State‘s bizfile Online portal, which is the fastest option, or file a paper Form LLC-1 by mail or drop-off.
The state filing fee for the Articles of Organization is $70, or $75 with a certified copy. If you drop it off in person, an additional $15 handling fee is added.
In addition, you need to complete a Statement of Information in California. This will include the name of your business and the Secretary of State’s file number for it. This must be done within 90 days of submitting your Articles of Organization. There is a $20 filing fee to complete the Statement of Information in the state of California.
Registered agent costs
Every California LLC must have a registered agent, so the next step is to determine who your registered agent will be. You can do it yourself. If that is the case, you do not have to pay for the service itself. If you use a registered agent service, you will usually pay $50 to $300 a year.
There are variable benefits to using a registered agent service. It is important to consider the value of taking that step over doing it yourself.
Operating agreement
California expects every LLC to have an operating agreement. The law allows it to be oral, implied or written, but a written agreement is strongly recommended. It provides a wide range of details to outline how your company will be managed and the process by which you will maintain it. It sets the ground rules for how decisions will be made in your company, the management of the company, and how profits are allocated to stakeholders.
You can do this yourself. Though you must understand the process and create legally binding agreements, it is possible to do it yourself and not pay anything for this service. However, many companies choose to use a lawyer to handle this process for themselves, in which case costs will vary.
Additionally, you can use our operating agreement service. If you go this route, you can include it in your LLC formation when we provide that service for you.
Other annual and additional California LLC costs
Depending on your business structure and overall goals, there may be more costs associated with setting up your LLC and managing it over time. Here is a look at some of those.
Franchise tax
The California annual tax (often called the franchise tax) is one of the biggest costs of operating an LLC in the state. Every LLC that is formed or registered in California, or does business there, owes at least $800 a year, even if it earns nothing.
Your first payment is due by the 15th day of the 4th month after your LLC is formed, and after that by April 15 each year. Under SB 122, signed into law in June 2026, LLCs whose first tax year begins in 2027, 2028 or 2029 pay a reduced $400 for that first year; the full $800 applies from the second year. Learn more in our guide to the California LLC franchise tax.
Business licenses & permits fees
Depending on the industry you operate in as well as the type of work you do, you may need to obtain a small business license in California or a permit to operate in the state. The state itself does not require a general business license, but many cities and some counties require you to obtain a local license or permits.
For business licenses, check out the CalGold website. This is a resource that helps you learn more about local requirements. Additionally, permits, often issued by local governments, often include taxing, zoning, health, alarm, building, signage, and occupational permits.
The answer to how much does a business license cost in California can vary significantly. It is important to check with local authorities to determine what you need to pay to do business here.
Statement of Information fee
California doesn’t have an annual report. Instead, LLCs file a Statement of Information within 90 days of forming and then every two years to keep the state up-to-date on your business information. It may seem tedious, but it is a part of keeping on top of the business’s requirements to operate in California. Each filing costs $20. Keep in mind that there is a $250 penalty if you fail to file on time.
LLC fee
Another cost associated with operating in the state is the LLC fee. If an LLC has total California gross receipts of $250,000 or more in a year, it owes this fee on top of the $800 annual tax. The amount depends on your gross receipts, and you pay an estimate by the 15th day of the 6th month of the tax year.
| Fee vs. Gross Receipts | |
| Total California Gross Receipts | Fee Amount |
| $250,000–$499,999 | $900 |
| $500,000–$999,999 | $2,500 |
| $1,000,000–$4,999,999 | $6,000 |
| $5,000,000 and up | $11,790 |
The expenses you can write off
All of these fees can seem to add up quickly, and that can be frustrating for many LLC owners, especially if you have a smaller business you are just getting off the ground. One bit of good news is that you may be able to deduct some of these LLC formation costs. They may be tax-deductible for your business at the federal level.
Some potential write-offs that you may have include the following:
- Cost of completing the articles of organization (this includes the costs that you pay for a company to complete these for you)
- Filing fees (all filing fees mentioned above could be considered a cost of doing business and written off as a deduction as a result)
- DBA fees (the fees you pay to establish the DBA are also considered a deductible cost in most situations)
- Operating Agreement Costs (this includes the costs you pay someone to create the Operating Agreement for your business)
- Registered Agent Costs (this typically includes the costs you pay to set up the registered agent service as well as the ongoing costs you pay to manage these services throughout the year)
- Attorney fees (any fees paid that are considered necessary to operate your business can be included in your tax deductions)
Keep in mind it is always important to speak to an accountant to determine your specific situation. The type of tax deductions you qualify for may differ from what is listed here – and even the accountant’s fee for service can reduce your costs.
California LLC State Fees
The following fees are taken from the California Secretary of State’s LLC forms and fees page.
| Fee type | Fee cost |
| Formation – Articles of Organization | $70.00 |
| Certified copy | $5.00 |
| Statement of Information | $20.00 |
| Attachment to Statement of Information | No Fee |
| Certificate of Dissolution, Certificate of Cancellation, Short Form Cancellation Certificate | No Fee |
| Conversion | $30.00–$150.00 |
| Amendment of Articles of Organization | $30.00 |
| Restated Articles of Organization | $30.00 |
| Certificate of Correction | $30.00 |
| Certificate of Continuation | $30.00 |
| Merger | $70.00–$150.00 |
| Application to Register a Foreign LLC | $70.00 |
| Name reservation | $10.00 |
Conclusion
With all these costs, creating an LLC may seem expensive and complex. However, in nearly all situations, it is worth creating your LLC to help form your business and operate it in the best way possible. Do not overlook the importance of doing so.
Remember, too, that as complex as it may seem, it is possible to reduce a lot of those frustrations by using an LLC formation service like ours. When you do, you get that expert insight and guidance you need – eliminating all the frustrations you feel. In addition to this, you also likely can write off the costs for our service on your taxes, making this an easy decision to make for most of today’s business owners.
If you’re ready to take the next step, learn more about how to start a business in California and about our services for the LLC formation process in California. It is fast and easy to get your business in place.
FAQ
It costs $70 to file Articles of Organization with the California Secretary of State, plus an optional $5 for a certified copy.
Yes. California LLCs must pay an $800 annual tax and file a Statement of Information every two years, which costs $20.
Yes. Most LLCs must pay the $800 annual tax, even if the business does not earn income. Under SB 122, signed in June 2026, LLCs whose first tax year begins in 2027, 2028 or 2029 pay $400 for that first year.
Depending on your industry and location, you may need business licenses or permits, which come with separate fees. LLCs with $250,000 or more in California gross receipts also owe an annual LLC fee.
You can save by filing your own formation documents and acting as your own registered agent, but many owners choose professional services for compliance and convenience.