Starting a California LLC means paying $70 for your Articles of Organization, whether you choose the BizFile portal's online option or mail it in. Want to drop it off in person? That'll cost you an extra $15 handling fee.
However, the real sting comes from California's infamous $800 annual franchise tax, which the Franchise Tax Board collects regardless of whether your LLC generates a single dollar of revenue. Don't forget the $20 Statement of Information due within 90 days of forming your LLC and every two years afterward.
Here's every possible charge you'll encounter when filing your California LLC, broken down by method and processing speed.
That $70 fee for Articles of Organization remains consistent across all filing methods. The Secretary of State sets this amount, which you can verify on BizFile.
Need your LLC approved faster? Expedited filings come in three speed tiers. You'll pay an additional $350 to $750 on top of the base $70, depending on your urgency. Most expedited options work both online and in-person, although the fastest four-hour service requires showing up in person.
Remember to file your Statement of Information within 90 days; that'll cost you an additional $20.
California lands in the middle range for initial formation costs among its neighbors. The $70 Articles of Organization fee seems reasonable compared to Oregon's $100, Nevada's $225 ($75 articles plus $150 initial list), Arizona's $50, and Utah's $54. When you're just getting started, California isn't actually more expensive than surrounding states. In fact, it's sometimes even cheaper.
The real shock comes after formation. California's flat $800 annual franchise tax is significantly lower than what neighboring states require. Oregon asks for a $100 annual report, Arizona charges nothing for domestic entities, and even Nevada's pricey business license and annual list total just $350 combined, less than half of California's mandatory minimum. Utah's recurring fees vary and aren't simply a flat $20 yearly charge.
The contrast gets even starker nationally. Few states impose blanket franchise taxes, and those that do, like Delaware and Texas, either set lower minimums or base fees on actual revenue. California wants its $800, whether you're making millions or haven't earned a cent.
So why do founders still bite the bullet? Access to the world's fifth-largest economy, 39 million potential customers, and specialized industry hubs in tech, entertainment, aerospace, and biotech make the math work out. When your success depends on proximity to investors, specialized talent, or specific regulators, that extra cost becomes just the price of admission.
Beyond the $70 Articles of Organization fee, several smaller charges can accumulate as you establish and maintain your California LLC. Understanding these optional and required costs helps you budget appropriately and avoid surprise expenses.
While some of these fees are optional, the registered agent service often pays for itself by preventing missed legal notices and the costly complications that follow. Budget for the essentials and consider which optional services align with your business needs and growth plans.
Discern eliminates compliance headaches by automating your California compliance filings. Our platform handles initial formation filings, provides professional registered agent services, and automatically tracks every biennial Statement of Information deadline.
Ready to transform your California LLC management and ongoing compliance? Book a demo with Discern today.
%20(1).png)
.png){kind=small}