California LLC Cost (2026): The $800 Tax and Every Other Fee
California is the most expensive state in the country to keep an LLC alive, and almost all of that cost comes from one line: the $800 annual franchise tax collected by the Franchise Tax Board (FTB). The Secretary of State filing fee is only $70. Everything else on this page explains the $800, when it is due, and the smaller fees that sit around it.
If you read an older guide that promised “no $800 tax in your first year,” that rule is gone. Assembly Bill 85 waived the first-year tax only for LLCs formed in tax years 2021, 2022 and 2023. An LLC formed in 2026 owes $800 for its first taxable year.
The $800 Tax Every California LLC Owes
Every LLC that is organized in California, registered here, or doing business here owes the $800 annual tax, whether it earned money or not. It is paid with FTB Form 3522 and is due by the 15th day of the 4th month after the LLC’s taxable year begins. For a new LLC, the clock starts on the date the Secretary of State files your Articles. Form an LLC on June 10 and the first $800 is due September 15.
The tax does not stop when you stop working. It keeps accruing every year until the LLC is formally cancelled with the Secretary of State, which is why a forgotten California LLC can pile up years of tax and penalties.
One narrow exception: if the LLC’s first taxable year is 15 days or less and it does no business in that window, the FTB does not charge the $800 for that short year. This matters mainly for LLCs formed in the second half of December.
Northwest Registered Agent
California LLCs pay the $800 tax no matter which service files the paperwork, so the formation fee is the part worth minimizing. $39 formation + $70 state fee, free registered agent in year one, then $125/yr.
$39 formation fee · Free registered agent for 12 months · Your address stays off public records · No data selling · No hidden fees
Form Your LLC with Northwest ($39) →Lowest 3-year cost we found: Northwest $289 vs Bizee $298 vs ZenBusiness $497 (service fees; state fees extra). Northwest also puts its address on your public filings instead of yours where the state allows.
What You Pay the Secretary of State
| Filing | Fee | When |
|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | Once, to create the LLC |
| Initial Statement of Information (Form LLC-12) | $20 | Within 90 days of filing the Articles |
| Statement of Information renewal | $20 | Every two years, in the filing window tied to your formation month |
The Statement of Information lists your managers or members and the LLC’s addresses. Because it becomes public, many owners list a registered agent’s address rather than their home. A professional agent in California typically costs $125 to $300 a year; Northwest Registered Agent is free for the first year with the $39 formation, then $125.
The Gross Receipts Fee Above $250,000
On top of the $800 tax, California charges a separate annual LLC fee once the LLC’s total income from California sources reaches $250,000. It is estimated and prepaid with Form 3536 by the 15th day of the 6th month of the taxable year, and reconciled on Form 568.
| Total California income | Annual LLC fee | Plus $800 tax |
|---|---|---|
| Under $250,000 | $0 | $800 |
| $250,000 to $499,999 | $900 | $1,700 |
| $500,000 to $999,999 | $2,500 | $3,300 |
| $1,000,000 to $4,999,999 | $6,000 | $6,800 |
| $5,000,000 and over | $11,790 | $12,590 |
Underpaying the estimated fee triggers a 10% penalty on the shortfall, so a growing business should estimate on the high side. Profit itself is not taxed at the LLC level for a default LLC: it passes through to the owners’ personal California returns, where rates run up to 13.3%.
3-Year Cost: Why California Is a $2,500 State
Three years of the $800 tax is $2,400 before any other fee. Here is the full minimum for an LLC with under $250,000 of California income:
| Scenario | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| Northwest Registered Agent | $929 ($70 filing + $39 + $20 SOI + $800 tax, RA free) | $925 ($800 tax + $125 RA) | $945 ($800 + $20 SOI + $125 RA) | $2,799 |
| ZenBusiness (Starter) | $989 ($70 + $0 + $99 RA + $20 SOI + $800 tax) | $999 ($800 + $199 RA) | $1,019 ($800 + $20 SOI + $199 RA) | $3,007 |
| DIY, self as registered agent | $890 ($70 + $20 SOI + $800 tax) | $800 ($800 tax) | $820 ($800 + $20 SOI) | $2,510 |
The gap between doing everything yourself and using Northwest Registered Agent is $289 over three years. It buys a California registered agent address for your public filings, compliance reminders for both the FTB and the Secretary of State, and a formation that is filed correctly the first time.
Form your California LLC for $39 + $70 state fee.
Northwest Registered Agent: $39 formation, free Year 1 registered agent, compliance reminders, and your home address kept off public records.
Form My California LLC for $39
Prefer a $0 upfront starter plan? Compare ZenBusiness (registered agent $199/yr).
California LLC Payment Calendar
For an LLC formed on June 10, 2026 that uses a calendar tax year:
- June 10, 2026: $70 Articles of Organization filed.
- By September 8, 2026: $20 initial Statement of Information (90 days).
- September 15, 2026: first $800 tax on Form 3522 (15th day of the 4th month).
- April 15, 2027: Form 568 return for 2026, and the $800 tax for 2027.
- 2028: Statement of Information renewal ($20), plus the $800 tax each April 15.
Penalties That Make $800 Worse
Missing the Statement of Information can lead to a $250 penalty, which the Secretary of State refers to the FTB for collection. Unpaid franchise tax adds FTB late-payment penalties and interest, and a long-delinquent LLC can be suspended, which strips its right to use its name or defend itself in a California court. The fix is simple: calendar the 15th day of the 4th month and the Statement of Information window from the day you file.
When a California LLC is not worth it: if the business will earn only a few thousand dollars a year, the $800 floor can exceed the profit. A sole proprietorship has no state entity tax, and you can convert later. Forming in Wyoming or Delaware does not help if you live and work in California, because the out-of-state LLC must register here and pay the same $800.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: $39 includes a free business address, mail scanning, and more.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
Frequently Asked Questions
Do California LLCs still get the first year free?
No. The first-year exemption under AB 85 applied only to LLCs formed in 2021, 2022 and 2023. A California LLC formed in 2026 owes the $800 annual tax for its first taxable year, due by the 15th day of the 4th month after formation.
How much does it cost to start an LLC in California?
The state charges $70 for the Articles of Organization and $20 for the initial Statement of Information. Add the first $800 franchise tax and the first-year minimum is $890 if you are your own registered agent, or $929 with Northwest Registered Agent ($39 formation, registered agent free for year one).
Is the $800 due if my LLC made no money?
Yes. The $800 is a minimum tax on the right to exist or do business in California, not a tax on profit. It is owed every year until the LLC is formally cancelled.
When does the California LLC gross receipts fee apply?
Once total California income reaches $250,000. The fee is $900 from $250,000, $2,500 from $500,000, $6,000 from $1 million, and $11,790 from $5 million, on top of the $800 tax.
What is the 3-year cost of a California LLC?
About $2,510 if you file everything yourself, $2,799 with Northwest Registered Agent, and $3,007 with ZenBusiness, for an LLC with under $250,000 of California income. Most of that is three years of the $800 tax.
