As of October 2026, forming an LLC in California costs $70 to file the Articles of Organization (Form LLC-1) with the Secretary of State, plus $20 for the Statement of Information due within 90 days. The big cost comes next: every California LLC pays the Franchise Tax Board an $800 annual tax, even in a year it does no business, until it's cancelled.
So your first year means three payments before you've earned anything: $70, then $20, then $800, and the $800 keeps coming every year after that. The first-year exemption that some guides still mention only covered tax years beginning in 2021, 2022 and 2023. Here's what you pay, when, and how to avoid a nasty surprise.
Every California LLC cost in one place
| Cost | Amount as of October 2026 | Paid to | When |
|---|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | Secretary of State | When you form |
| Statement of Information (Form LLC-12) | $20 | Secretary of State | Within 90 days, then every two years |
| Annual LLC tax | $800 | Franchise Tax Board | 15th day of the 4th month |
| LLC fee, California income $250,000 to $499,999 | $900 | Franchise Tax Board | Estimate by the 15th day of the 6th month |
| LLC fee, $500,000 to $999,999 | $2,500 | Franchise Tax Board | Same |
| LLC fee, $1,000,000 to $4,999,999 | $6,000 | Franchise Tax Board | Same |
| LLC fee, $5,000,000 or more | $11,790 | Franchise Tax Board | Same |
| Penalty for not filing the Statement of Information | $250 | Collected by the FTB for the SOS | If you miss it |
The LLC fee is separate from the $800 tax. It only applies once your total California income passes $250,000, and you estimate and pay it during the year using Form FTB 3536.
How to form a California LLC
- File the Articles of Organization. Online filing through bizfile Online is the fastest route; the Secretary of State lists online submissions at 5 days or less, against 10+ days for PDF forms.
- File your first Statement of Information within 90 days. It costs $20 and confirms who runs the LLC and where. If there's more than one manager or member, there's an attachment form (LLC-12A).
- Pay the first $800 annual tax by the 15th day of the 4th month after you file. The FTB's own example: form on June 18 and the tax is due September 15. Use voucher FTB 3522 if you pay by mail.
- Get your federal EIN; here's how that works.
- File Form 568, the LLC Return of Income, by the original due date each year, and pay the $800 again by the 15th day of the 4th month of each tax year.
One new rule for 2026: from August 1, 2026, the Secretary of State requires User Access to file a Statement of Information online, so set up your account before you need it.
When is the Statement of Information due?
After the first one, it's due every two years in a six month window tied to the month you formed. The Secretary of State publishes the schedule. A few examples from its table:
| Month you formed | Filing window opens | Filing window closes |
|---|---|---|
| January | 1 August | 31 January |
| April | 1 November | 30 April |
| June | 1 January | 30 June |
| October | 1 May | 31 October |
The FTB collects a $250 penalty for the Secretary of State if you don't file it, and the Secretary of State warns that failing to file can also lead to suspension or forfeiture. You should also file an updated statement any time your details change in between.
The $800 trap, and the one way out
The FTB is blunt about it: the annual tax is due even if you aren't conducting business, until you cancel the LLC. Forming one 'just in case' costs $800 a year for the privilege. The one escape the FTB describes is short form cancellation: if you cancel within one year of organizing using Form LLC-4/8, the LLC isn't subject to the $800 tax for its first tax year.
That makes sense if you formed by mistake or the plan fell through. It's no help once you're trading. If you're still weighing it up, an LLC vs a sole proprietorship is worth comparing first, since a sole proprietor doesn't pay the $800.
It's also worth knowing what 'doing business' means here too. The FTB's guidance says you may have California source income if you sell goods to California customers, perform a service for customers who get the benefit in California, or own an intangible used in California. If your LLC was formed elsewhere but sells into the state, read that page before assuming the $800 doesn't apply to you.
The verdict
California's $70 filing fee is a decoy. The cost that matters is the $800 a year to the Franchise Tax Board, due from your very first year now that the 2021 to 2023 exemption has ended. If the liability protection is worth $800 a year to your business, go ahead, and calendar three dates: the 90 day Statement of Information, the 4th month tax payment and the Form 568 return. If it isn't, don't form one yet, because there's no pausing the $800 once you have.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
Frequently asked questions
How much does it cost to start an LLC in California?
As of October 2026, the Articles of Organization cost $70 and the first Statement of Information costs $20. Every LLC also pays an $800 annual tax to the Franchise Tax Board.
Do California LLCs still get the first-year $800 exemption?
No. The FTB says the exemption only applied to tax years beginning on or after January 1, 2021 and before January 1, 2024.
When is the California $800 LLC tax due?
By the 15th day of the 4th month after you file with the Secretary of State, and then by the 15th day of the 4th month of each tax year.
Do I pay the $800 if the LLC had no sales?
Yes. The FTB says the annual tax is due even if you're not conducting business, until you cancel the LLC.
How often is the California Statement of Information due?
Within 90 days of forming, then every two years. It costs $20 for an LLC.
What is the California LLC fee?
It's a separate fee on top of the $800 tax for LLCs with California income of $250,000 or more, from $900 up to $11,790 for $5,000,000 or more.
Can I avoid the $800 if I close my LLC quickly?
If you cancel within one year of organizing using short form cancellation (Form LLC-4/8), the FTB says the LLC isn't subject to the $800 for its first tax year.
