California LLC fees start with a one-time $70 filing fee to form the company and a recurring $800 annual franchise tax owed to the Franchise Tax Board, which every LLC pays whether or not it earned a dollar that year. LLCs with $250,000 or more in California-source income owe an additional tiered fee that tops out at $11,790. A $20 biennial Statement of Information, penalties for late payment, and the cost of a registered agent round out what most owners actually spend.
Formation Filing Fee
You form a California LLC by filing Articles of Organization (Form LLC-1) with the Secretary of State. The fee is $70, paid once.1California Secretary of State. Business Entities Fee Schedule
Standard processing takes several weeks. If you need it faster, the Secretary of State offers two expedited tiers charged on top of the $70:2Legal Information Institute. Cal Code Regs Tit 2, 21905 – Expedited Filing of Documents
- 24-hour service: $350, processed within one business day of receipt.
- Same-day service: $750, processed by 4:00 p.m. the day the document is received, provided it arrives by 9:30 a.m.
Most owners don’t need expedited processing. It matters when a contract or launch date won’t wait.
The $800 Annual Franchise Tax
Every LLC doing business in California or organized in California owes an annual franchise tax of $800 to the Franchise Tax Board, regardless of income.3Franchise Tax Board. Limited Liability Company The tax keeps accruing each year until you formally cancel the LLC with the Secretary of State. An inactive LLC doesn’t quietly disappear.
For your first tax year, the $800 is due by the 15th day of the fourth month after you file your Articles of Organization. Form on June 18, and the first payment is due October 15. After that, the tax is due on the 15th day of the fourth month of each taxable year, which lands on April 15 for calendar-year LLCs.3Franchise Tax Board. Limited Liability Company You pay using Form FTB 3522 (LLC Tax Voucher) or electronically through the FTB’s Web Pay system.
The First-Year Waiver Has Expired
California temporarily waived the first-year $800 tax for LLCs formed between January 1, 2021, and December 31, 2023. That waiver no longer applies. LLCs formed in 2024 or later owe the full $800 in their first year.3Franchise Tax Board. Limited Liability Company
One narrow escape survives: if you cancel your LLC within one year of organizing by filing a short-form cancellation (Form LLC-4/8), you won’t owe the $800 for that first tax year.3Franchise Tax Board. Limited Liability Company Useful if you form an LLC and quickly realize you don’t need it.
Income-Based Annual Fee
On top of the $800, California charges a separate annual fee on LLCs whose total California-source income reaches $250,000 or more. It’s a flat amount at each tier, not a percentage:4California Legislative Information. California Revenue and Taxation Code 17942
- $250,000 to $499,999: $900
- $500,000 to $999,999: $2,500
- $1,000,000 to $4,999,999: $6,000
- $5,000,000 or more: $11,790
The jump between tiers can sting. An LLC earning $499,000 pays $900; one earning $500,000 pays $2,500.
What Counts as “Total Income”
“Total income” here is not taxable income or net profit. It means gross income (as defined under California tax law) plus cost of goods sold, which makes the figure larger than most owners expect. Revenue and Taxation Code Section 17942 also excludes income already subject to this fee that flows from one LLC to another, so the same dollars aren’t double-counted when LLCs hold interests in other LLCs.4California Legislative Information. California Revenue and Taxation Code 17942
Estimated Payment and the 10% Penalty
You don’t pay this fee when you file your return. You estimate it and pay by the 15th day of the sixth month of the current tax year, which is June 15 for calendar-year LLCs. The FTB provides Form 3536 for mailing the payment, or you can pay electronically.5Franchise Tax Board. 2025 FTB 3536 Estimated Fee for LLCs
Underestimate, and the FTB adds a 10% penalty on the shortfall. The safe harbor: you avoid the penalty if your estimated payment at least equals the total fee you owed for the prior tax year.4California Legislative Information. California Revenue and Taxation Code 17942 When revenue is unpredictable, paying last year’s amount by June is the simplest way to stay safe.
Annual Return: Form 568
California LLCs classified as partnerships file Form 568 (Limited Liability Company Return of Income) with the FTB each year. The return is due by the 15th day of the third month after the close of your taxable year, which is March 15 for calendar-year filers.6Franchise Tax Board. 2025 Instructions for Form 568 Limited Liability Company Tax Booklet It’s the return where the $800 tax, the income-based fee, and the LLC’s income figures come together. LLCs with no activity still file if they’re organized or registered in California.
Biennial Statement of Information
Every California LLC, domestic or foreign, files a Statement of Information (Form LLC-12) with the Secretary of State. The fee is $20.1California Secretary of State. Business Entities Fee Schedule Your initial statement is due within 90 days of formation or registration. After that, you file every two years during a six-month window set by the Secretary of State.7California Secretary of State. Statements of Information Filing Tips
The statement keeps your public record current: agent for service of process, principal office address, and the names and addresses of managers or members. Miss the deadline and you’re hit with a $250 penalty.8Franchise Tax Board. Limited Liability Company Collections Information Filing online through the Secretary of State’s bizfile system takes a few minutes.
If Your LLC Was Formed in Another State
An out-of-state LLC doing ongoing business in California must register as a foreign LLC by filing an Application for Registration (Form LLC-5) with the Secretary of State. The fee is $70, and you must submit a certificate of good standing from the LLC’s home state, issued within the preceding six months.9California Secretary of State. LLC-5 Application to Register a Foreign Limited Liability Company
Once registered, a foreign LLC pays the same $800 annual franchise tax, the same tiered income-based fee on California-source income, and the same biennial Statement of Information as a domestic LLC.3Franchise Tax Board. Limited Liability Company Forming in Nevada or Wyoming to lower your California tax doesn’t work. It adds the cost of maintaining the LLC in two states.
Other Costs Worth Budgeting
Certified copies of filed documents like your Articles of Organization cost $5 for the certification plus $1 for the first page and $0.50 per additional page. Request a certified copy in person and a $10 special handling fee applies.1California Secretary of State. Business Entities Fee Schedule
Every California LLC must designate an agent for service of process. You can name yourself or another individual with a California street address, or hire a commercial registered agent. Typical annual costs run $100 to $300, with budget options starting around $50 and premium multi-state packages exceeding $500.
Penalties, Suspension, and Cancellation
Missing California tax deadlines gets expensive fast, and the fallout goes past extra dollars on the bill.
Late Payment Penalties
If the $800 franchise tax isn’t paid by its due date, the FTB charges a penalty starting at 5% of the unpaid amount plus an additional 0.5% for each month the payment remains late, capped at 25% of the unpaid tax.10Franchise Tax Board. FTB Pub 1024 Penalty Reference Chart Interest accrues on top. For the income-based fee, the 10% underpayment penalty above applies whenever the estimated payment falls short.4California Legislative Information. California Revenue and Taxation Code 17942
Suspension
When taxes or filings stay delinquent long enough, the FTB suspends the LLC. A suspended LLC cannot legally do business in California and cannot bring or defend a lawsuit. That second consequence is the sharp one. If someone sues your suspended LLC, you can’t respond. If a customer owes you money, you can’t sue to collect. The Secretary of State can add a separate $250 penalty.11Franchise Tax Board. My Business Is Suspended
To revive a suspended LLC, you pay all back taxes and penalties, file every delinquent return, and submit an Application for Certificate of Revivor (Form FTB 3557 LLC). For an LLC that’s been suspended for years, back taxes alone come to at least $800 per year, before penalties and interest.
Administrative Cancellation
If your LLC stays suspended for 60 or more consecutive months, the FTB can permanently cancel it administratively. The FTB sends notice; if you don’t object within 60 days, cancellation becomes final. Even if you object, you get 90 days to clear all outstanding obligations. Once the administrative cancellation goes through, the state legally terminates the business and there are no appeal rights.12Franchise Tax Board. Administrative Dissolution/Cancellation
Closing the LLC
The Secretary of State charges no filing fee for a Certificate of Cancellation or short-form cancellation.13California Secretary of State. Limited Liability Companies (LLC) – California The real cost is settling up with the FTB first: file all delinquent returns, pay outstanding balances including penalties, fees, and interest, and file the final-year return before the Secretary of State will accept the cancellation.14Franchise Tax Board. Guide to Dissolve, Surrender, or Cancel a California Business Entity
If the FTB has already suspended your LLC, the Secretary of State will reject your cancellation paperwork until you revive the entity, which means paying the back taxes and penalties you were trying to escape by closing it. Each year you delay adds another $800 minimum to the bill.