LLC Costs in California (CA)
$995 all-in for your first year - $70 to file, $800 annual report, plus a registered agent. California is $612 (160%) more expensive than the national average for first-year LLC costs.
California's $800 minimum franchise tax applies every year, even if the LLC has no income. This is one of the highest ongoing costs in the country. Additionally, LLCs with revenue over $250,000 pay a graduated fee up to $11,790.
Updated 2025 · Source: California Secretary of State
Higher periodic report fee
Higher periodic report fee. Annual Franchise Tax at $800 sits in the dearer third of report fees among states that still charge one. Filing, registered agent and the Annual Franchise Tax together put California's first-year total at $995, ranking #49 of 51. Fees are those published by the California Secretary of State; registered agent is a $125/yr market-rate line, not a vendor quote.
According to the California Secretary of State fee schedule; registered agent normalized at $125/yr. See methodology. How we calculate →
State LLC fee schedule strip
Fee strip CA · California SOS FY 2026 · rank #49
California · FY 2026 · 3-5 business days · no pub
- EXPEDITE Online filing
- EXPEDITE www.sos.ca.gov
- EXPEDITE 3-5 business days
- EXPEDITE +$350 expedite
- EXPEDITE near Nevada
- EXPEDITE 160% above avg
Dear-third stack: stamps derive from this state's Secretary of State fee schedule, not a recommendation of where to form. Read with tax planning against a dear SOS stack → · All 51 SOS fee rows →
Cost vs. speed: where California sits among all 51 filing offices
How the dear-third $995 stack breaks down
- State filing fee $70
- Annual Franchise Tax (yr 1) $800
- Registered agent $125
| Cost Item | Amount |
|---|---|
| State Filing Fee | $70 |
| Annual Franchise Tax | $800 |
| Registered Agent | $125/yr |
| Expedited Filing (optional) | $350 |
| Total, First Year | $995 |
Ongoing tax burden after formation
California's 8.84% corporate tax rate ranks among the highest corporate tax burdens nationally, an ongoing cost that can outweigh the one-time $995 formation fee within a few profitable years.
Sources: Tax Foundation state corporate tax rates, Census ACS effective property tax rates.
California LLC quick facts (dear third)
Similar Cost States
Lower-cost escapes
Jurisdictions with a lower first-year SOS-fee total than dear-third CA:
Read our methodology - how this data is sourced, computed, and verified. Report a data error on this page.
Sources used on this page
- California Secretary of State - LLC filing fee, annual-report requirement, and processing time. www.sos.ca.gov
- Federation of Tax Administrators - cross-check of state fee and tax figures. taxadmin.org