How Much Does an LLC Cost in California?
Forming a California LLC costs $70 in state filing fees. Keeping it alive costs $800 a year, minimum. Most first-year totals land between $900 and $2,700 depending on how much help you hire. Here’s every fee, what triggers it, and which ones catch Roseville owners by surprise.
What LLC Formation Really Costs: Minimum, Typical, Full-Service
Three realistic first-year budgets for California LLC formation, as of July 2026:
| Cost item | DIY minimum | Typical online service | Attorney flat fee (BJS Law) |
|---|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | $70 | $70 |
| Statement of Information (Form LLC-12) | $20 | $20 | $20 |
| Service / legal fees | $0 | $0–$300 + upsells | $1,750 — includes entity selection counseling and all governing documents |
| Registered agent | $0 (yourself) | $100–$300/yr | Included in setup guidance |
| Operating agreement | Template risk | Generic template | Drafted for your ownership and exits |
| $800 annual franchise tax | Everyone pays it — see below | ||
The filing fee is the cheap part. The decisions around it — tax classification, ownership terms, whether an S corporation election fits — are where the real money gets made or lost. And remember that your LLC name is not a brand: protecting it is a separate budget, covered in what a trademark costs in California.
Formation Filing Fees and the Optional Extras
Required at the start: the $70 formation filing fee to create your limited liability company with the Articles of Organization, filed through the Secretary of State’s bizfile Online portal, then a $20 Statement of Information within 90 days of formation (and every two years after — California’s version of what other states call an annual report, and one of the recurring filing requirements every LLC carries; miss the window and the state adds a $250 late filing penalty). Every LLC also needs a registered agent — formally, an agent for service of process — with a California street address. You can serve as your own for free; a registered agent service runs $100–$300 a year and keeps your home address off the public record.
The optional extras the Secretary of State sells: name reservation ($10) if you’re not filing immediately, certified copy of your Articles (banks occasionally ask), a certificate of status ($5) for lenders, and expedited filing if you need the Articles back in days instead of weeks. Most Roseville businesses need none of them.
Not fees, but real setup items: your EIN is free from the IRS — never pay a website for one. A business bank account and clean bookkeeping from day one protect the liability shield you just paid for. And the operating agreement is where cheap goes expensive: California doesn’t require one, but without it, state default rules decide your disputes and exits.
The FTB Is the Bill That Never Leaves: $800 Annual Tax + the LLC Fee
Every California LLC pays the Franchise Tax Board (FTB) an $800 annual tax — the minimum franchise tax — every year it exists. Profitable or dormant, storefront off Galleria Blvd or laptop in a spare bedroom. It applies until you formally file for dissolution and cancellation with the state.
Two details on the payment due date that generate penalties constantly. Your first $800 is due by the 15th day of the 4th month after formation — form an LLC in July 2026 and the first payment lands in October 2026. There is no first-year exemption anymore; that waiver expired for LLCs formed after December 31, 2023. (Fresh legislative note: under SB 122, passed in June 2026, LLCs formed in 2027 through 2029 will pay a reduced $400 first-year tax. If you’re on the fence in late 2026, that’s worth a conversation about timing.)
Then there’s the second charge many owners discover late: the annual LLC fee, based on gross receipts — total income, meaning California source income, not profit:
| Total California income | LLC fee (on top of the $800) |
|---|---|
| Under $250,000 | $0 |
| $250,000 – $499,999 | $900 |
| $500,000 – $999,999 | $2,500 |
| $1,000,000 – $4,999,999 | $6,000 |
| $5,000,000 + | $11,790 |
These income thresholds trip up high-revenue, low-margin businesses — a contractor grossing $600,000 on thin margins owes the $2,500 even in a rough year. The $800 goes in with Form 3522 each taxable year, the fee rides on the LLC’s Form 568 return, and estimated payments on the fee are due mid-year — missing them brings penalties and interest. If your revenue is anywhere near a threshold, this belongs in your tax planning conversation with your CPA — and in whether the LLC default — pass-through taxation, under partnership tax classification for multi-member LLCs — is even the right setup for you.
Two Calendar Tricks That Each Save an $800 Payment
The 15-day rule at formation. An LLC formed in the final 15 days of December that conducts no business before January 1 has no tax year for that stub period — and owes no $800 for it. File on December 10 and do business, and you owe the full $800 for those three weeks. File December 20 and wait, and you don’t. Same paperwork, $800 apart.
The year-end rule at shutdown. The $800 accrues for any tax year your LLC exists, even one day of it. If you’re winding a business down in the fall, completing the dissolution and cancellation filings with the Secretary of State before December 31 — and filing your final FTB return — stops the next year’s $800 from ever accruing. Wait until the second week of January and you’ve bought a dead company an $800 tax bill.
The state filings to cancel an LLC are free. The cost of shutting down badly isn’t: owners who just walk away accumulate years of $800 charges, penalties, and interest, plus FTB suspension — and a suspended LLC can’t enforce its contracts or defend itself in court while you’re trying to resolve it. If a business is done, close it on paper. It’s an afternoon of filings that saves thousands.
Roseville-Specific Costs to Budget
Placer County and city-level items that a state-fee checklist misses: a City of Roseville business license (annual, fee varies by activity), a seller’s permit from the CDTFA if you sell goods (free, but you’ll collect sales tax), industry permits, any professional license your field requires, whatever local permit your activity triggers, and a Placer County DBA filing with its four-week newspaper publication if you’ll operate under a trade name. Our full walkthrough: how to start a business in Roseville.
Professional services round out a realistic budget. A CPA or tax professional for the first-year returns and estimated taxes. Legal fees if you have partners, investors, or anything beyond a single-member structure. This is where an attorney flat fee beats hourly ambiguity — at BJS Law, LLC formation is $1,750, quoted before work begins, with compliance support after launch through ongoing counsel plans starting at $99/month.
Three common Roseville scenarios, budgeted honestly:
Home-Based Consultant
State filings $90, the $800 annual tax, city license plus Home Occupation Clearance, no seller’s permit. First year lands near $1,000 DIY — or about $2,750 with attorney formation and a purpose-built operating agreement.
Retail Storefront
Everything above, plus a seller’s permit for sales tax, signage and occupancy permits, and a lease worth reviewing before you sign. The lease, not the LLC, is usually the biggest legal risk in this budget.
Two-Partner Services Firm
Same state costs — but a template operating agreement is where partner LLCs go to die. Budget real legal drafting for ownership splits, decision rights, and exits. It’s cheaper than one partnership dispute. By a lot.
California LLC Cost Questions, Answered Directly
Do I owe the $800 annual tax if my LLC makes no money?
Yes. The $800 minimum franchise tax applies every year your LLC exists, regardless of income or activity. It stops only when you formally dissolve and cancel the LLC with the Secretary of State and file final returns with the FTB.
What does an LLC cost in California the first year?
State minimum: $890 — the $70 Articles of Organization, $20 Statement of Information, and the $800 annual franchise tax. Add a registered agent service, attorney or filing help, and local licenses, and typical first-year totals run $1,000–$2,700.
Can I avoid the $800 by forming my LLC in Nevada or Wyoming?
No. If you live and operate in Roseville, your out-of-state LLC is doing business in California and must register here and pay the same $800 — plus the other state’s fees on top. The two-state setup costs more, not less.
What happens if I don’t pay the FTB?
Penalties and interest accrue, and the FTB can suspend your LLC. A suspended LLC can’t legally operate, enforce its contracts, or defend itself in court — and the liability protection you formed it for is at risk while it’s suspended.
How long does it take to form an LLC in California?
Standard Secretary of State processing typically runs one to three weeks depending on filing volume, and paid expedited processing can compress that to days. At BJS Law, formation engagements usually complete in two to four weeks including entity counseling, drafting, and filings.
Is the LLC fee based on profit?
No — gross receipts. The fee keys to total California income: $900 at $250,000, up to $11,790 above $5 million, even in a year with zero profit. High-revenue, low-margin businesses should factor it into pricing and entity decisions early.
Know Your Real Number Before You File
Fifteen minutes with a business attorney who has run these numbers on his own companies. Flat fee if you move forward. Straight answers either way.