How Much Does It Cost to Form an LLC?

California LLC Annual Fee and Tax Obligations

The $800 annual fee applies to all LLCs in California. The fee amount changes based on when your LLC was started and your fiscal year. Pay by the 15th day of the 4th month after your fiscal year ends. If the 15th is a weekend or holiday, pay the next business day. This $800 fee is separate from your LLC’s tax obligations. Your LLC earnings calculate your personal taxes. Use the FTB fee calculator to determine your exact $800 cost.

California LLC Annual Waiver for New LLCs and Partnerships

From 2021-2023, new LLCs and partnerships don’t owe the $800 tax their first year. This waiver only applies to companies formed during those years.

LLC Taxation and Filing Procedures

LLCs file a tax form and may pay franchise fees. The $800 minimum tax applies every year even if open only part of the year. LLCs can pay this fee up to a year early using the FTB’s online payment system. If paying online, don’t file form FTB 3522.

Taxation of Single-Member LLCs

Single-member LLCs are treated as sole proprietorships by the IRS. So the LLC itself doesn’t pay taxes or file a federal return.

California LLC Statement of Information Filing

The $20 Statement of Information filing fee is due yearly within 90 days of LLC approval. Then, file it biennially before your approval anniversary. Download the form and mail it with payment to the Secretary of State.

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