How Much Does It Cost to Start an LLC in California? (2026 Breakdown)
Starting an LLC in California is one of the smartest moves you can make as a business owner—but one of the biggest questions we hear is:
“How much is this actually going to cost me?”
The short answer?
It depends—but we’re going to break it down clearly so you know exactly what to expect (no surprises).
💰 California LLC Filing Fee (Required)
To officially form your LLC, you must file Articles of Organization with the California Secretary of State.
State Filing Fee: $70 (one-time)
This is the baseline state cost—no way around it.
📝 Statement of Information (Required)
Within 90 days of forming your LLC, you must file a Statement of Information.
Fee: $20
Frequency: Every 2 years
Think of this as your LLC’s “status update” with the state.
⚠️ California Franchise Tax (The Big One Most People Miss)
Here’s where most people get caught off guard:
$800 Annual Franchise Tax
Due every year your LLC is active
Even if you make $0 revenue.
👉 This is not optional.
🧾 Optional (But Smart) Costs
These aren’t required—but they can save you time, mistakes, and headaches:
Registered Agent Service: $100–$300+/year
Operating Agreement: $0–$500+
EIN (IRS): $0–$200+
Professional Filing Service: $99–$999+
📊 Total Cost Breakdown
Here’s what most new California LLC owners actually pay:
Minimum State Fees (DIY):
👉 ~$90 (filing + initial statement)
Typical Real Cost (with help):
👉 $200 – $800+
Ongoing Annual Cost:
👉 $800/year (plus $20 filing every 2 years)
🤔 DIY vs Professional Help: What Most People Choose
Yes—you can start an LLC yourself for around $90.
But here’s what that doesn’t include:
Making sure your business is structured correctly
Avoiding costly mistakes or rejected filings
Ongoing compliance reminders and support
Time spent researching, filing, and fixing errors
That’s why many business owners choose a professional service.
At SimpleCorp, our Complete package includes:
Correct filing from day one
Same-day submission (in most cases)
Built-in compliance support
First year of registered agent service included
👉 For many owners, it’s not about the cheapest option—it’s about getting it done right.
🚀 What Most People Get Wrong
Most people:
Only think about the $70 filing fee
Completely miss the $800 annual tax
Delay or miss compliance filings (which leads to penalties)
Choose the wrong business structure
That’s where things get expensive.
✅ The Smarter Way to Start
Starting your LLC isn’t just about filing—it’s about setting it up correctly from day one.
At SimpleCorp, we help you:
File correctly the first time
Avoid costly mistakes
Stay compliant long-term
Get set up fast (often same-day submission)
👉 Final Thoughts
Starting an LLC in California is more affordable than most people think upfront—but more expensive long-term if you don’t plan properly.
If you understand the costs up front, you can make the right decision for your business with confidence.
Have a few follow-up questions? Send us a note — we’re always happy to help and answer anything you need.