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What does a California LLC actually cost in year one?
Budget about $890 in government charges for year one: $70 to file the Articles of Organization, $20 for the first Statement of Information, and $800 for the California annual LLC tax. That $800 is waived for your first tax year if you qualify, so your cash out in the first twelve months is closer to $90 plus whatever you pay a registered agent.
Quick Answer: A California LLC costs $70 to form with the Secretary of State and $20 for the initial Statement of Information. Every California LLC also owes an $800 annual tax to the Franchise Tax Board, waived for the first tax year only. Add a registered agent fee, which is a private cost, not a government one.
Three buckets keep this straight.
- Secretary of State fees. $70 to form, $20 for the initial Statement of Information. One-time at the start [2].
- The $800 annual tax. Paid to the Franchise Tax Board (FTB), California's tax agency. Recurring [1].
- Provider fees. Registered agent, formation service, mail forwarding. Optional but realistic, and recurring.
Note: the $800 is a tax, not a filing fee. It goes to the FTB, never to the Secretary of State, and paying it does nothing for your Statement of Information.
One more charge sits on top at higher revenue: an income-based LLC fee tied to California gross receipts. It is separate from the $800 and only applies above a threshold.
Why do founders confuse the $70 filing fee with the $800 annual tax?
Because they are two different charges to two different agencies, and most cost pages lead with the smaller one. The $70 forms your LLC. The $800 keeps it in good standing with the tax authority.
The Secretary of State handles formation and the Statement of Information. The FTB handles the annual tax and Form 568, the California LLC return. Neither agency collects for the other [1][2].
| Charge | Agency | When due | Recurring? | Type |
|---|---|---|---|---|
| Articles of Organization | Secretary of State | At formation | One-time | Government |
| Statement of Information | Secretary of State | Within 90 days, then every 2 years | Recurring | Government |
| $800 annual tax | FTB | With Form 568 each year | Recurring | Government |
| Registered agent | Private company | Annual | Recurring | Provider |
Say your LLC forms in March. You pay $70 to the Secretary of State, then $20 within 90 days. The $800 is a separate obligation to the FTB, and your first payment lands with your second-year return.
When does the $800 California LLC tax start, and is the first year really exempt?
The $800 minimum franchise tax applies to every LLC doing business in California. A newly formed LLC is exempt from that tax for its first tax year only. The exemption covers the $800. It does not touch the $70 filing fee or the $20 Statement of Information.
That is the part people get wrong. They read "first year exempt" and assume the whole bill disappears. It does not. You still pay the Secretary of State in full.
Timing follows your formation date and your LLC's tax year, so the first $800 payment lands in your second year. File Form 568 for that year and pay then.
Zero revenue does not save you. A California LLC owes the $800 even with no sales, no profit and no California-source income, once the first-year exemption is used up [1]. This is where an LLC differs from a corporation that may qualify for its own first-year relief. Do not carry corporate assumptions into an LLC.
Heads-up: Form 568 is due the 15th day of the fourth month after your tax year ends for a calendar-year LLC.
Statement of information: is it $20 every year or every two years?
Every two years. For LLCs the Statement of Information costs $20, is due within 90 days of formation, then every two years during the anniversary month of your registration [2]. Corporations file annually, which is where the confusion starts.
| Filing | Due window | Fee | Agency |
|---|---|---|---|
| Initial Statement of Information | Within 90 days of registration | $20 | Secretary of State |
| Biennial Statement of Information | Anniversary month, every 2 years | $20 | Secretary of State |
Missing it triggers a penalty from the Secretary of State, and an LLC that stays delinquent can be penalized further or lose good standing. The fee is small. The cleanup is not.
Imagine you form in July 2026. Your initial statement is due by roughly October 2026. The next one is due in July 2028, not July 2027. Put both dates in your calendar the day you file.
California vs Wyoming and Delaware: which is cheaper in year one?
California is the most expensive of the three in year one once the $800 tax is counted. Wyoming and Delaware charge less at the state level, but they carry their own recurring charges, and neither one automatically removes California tax if your LLC actually does business in California.
| State | Formation fee | Recurring state filing | Annual state tax | Year-one government total |
|---|---|---|---|---|
| California | $70 | $20 Statement of Information every 2 years | $800 LLC tax (waived year one) | About $90 year one, $820+ after |
| Wyoming | Check the current official fee | Annual report, small fee | None at state level | Check the current official fee |
| Delaware | Check the current official fee | Annual LLC tax | $300 | Check the current official fee |
Delaware charges no state-level LLC franchise tax but does charge a $300 annual LLC tax. Wyoming charges a small annual report fee and no state income tax on LLCs.
The trap is nexus. If your team, your office or your operations sit in California, California treats you as doing business there and the $800 follows you, whatever state stamped your formation papers. Forming in Wyoming to dodge $800 while running the business from California buys you two filings instead of one.
Suppose you live in Punjab, sell software to US customers, and hold no California office, staff or property. California tax exposure is then a real question with a real answer, and it is worth asking a qualified tax professional before you pick a state. If you want the formation mechanics either way, see US LLC formation for non-residents.
What does a non-resident founder pay on top of the California LLC fees?
Exactly the same government fees as a resident: $70, $20 and $800. There is no non-resident surcharge in California. Your extra costs are the registered agent and any tax filing help.
You need a registered agent: a person or company with a physical California street address who accepts legal mail for you. That is a private annual fee, not a government charge, and it is unavoidable for a non-resident with no California address.
You also need an EIN, the free federal tax ID from the IRS, before you open a bank account or file anything. The IRS issues it at no cost. Getting one without an SSN is a process, not a purchase: getting an EIN as a non-US resident.
Online filing through the Secretary of State's bizfile system is the normal route, and it accepts foreign addresses in practice.
You file federal forms too. A single-member LLC owned by a non-resident files Form 5472 with a pro forma Form 1120, and the penalty for missing it is $25,000. That number is not a typo. Budget for professional help on this one: federal tax support for Form 5472 and Form 1120.
Tip: pay the $800 through the FTB's own payment system, not a third-party site. You want the payment tied to your California entity number.
Common mistakes that inflate a California LLC's real cost
Treating $70 as the total. It is the entry ticket, not the cost of ownership. The $800 is the number that shapes your budget.
Reading the first-year exemption as covering everything. It covers the $800 tax for the first tax year. The $70 and the $20 are always due.
Filing the Statement of Information annually. For LLCs it is biennial. You will overpay or file early and confuse your own records.
Forming in Wyoming or Delaware to save money while operating from California. You end up with two sets of filings and the California tax anyway.
Ignoring the income-based LLC fee. At higher California gross receipts a second fee applies on top of the $800, and it surprises people at year end.
Forgetting the registered agent renewal. It is a private recurring cost, and letting it lapse puts your legal mail at risk.
Do this: write your real annual number down before you file. $800 tax plus registered agent plus tax prep. If that total does not work for your revenue plan, a California LLC is the wrong vehicle, and finding out now is cheaper than finding out in month fourteen.
Frequently Asked Questions
Is the $800 California LLC tax due in the first year? No, if your LLC is newly formed and qualifies for the first-year exemption. The $70 filing fee and $20 Statement of Information are still due immediately. The $800 starts in your second tax year.
Do I pay the $800 tax if my California LLC makes no money? Yes. The $800 minimum franchise tax applies to a California LLC with zero revenue, once the first-year exemption is used. Revenue does not change the minimum.
How often is the $20 Statement of Information filed for an LLC? Within 90 days of formation, then every two years during the anniversary month. It is not annual for LLCs, unlike corporations.
Can a non-resident form a California LLC, and what does it cost? Yes. The government fees are the same $70, $20 and $800. Add a registered agent fee. There is no separate non-resident charge.
Is it cheaper to form an LLC in Wyoming or Delaware than California? On state fees, usually yes. But if the LLC does business in California, California tax still applies. Compare total cost including nexus, not just the filing fee.
What is the income-based California LLC fee? A separate fee based on California gross receipts above a threshold, charged on top of the $800.
Can I pay the $800 and skip the Statement of Information? No. They go to different agencies and satisfy different obligations. Paying one does not clear the other.
If you want help with US LLC formation, EIN and business setup, NexFyla can assist. Start with the formation steps and a clear view of what year two costs you.
*Last updated: February 2026.*
Related reading
- New Mexico LLC Filing Fee and the Zero Annual Fee Question
- Wyoming LLC Filing Fee Breakdown: $100 Plus the $60 Annual Report
- Texas LLC Filing Fee in 2026: What a Non-Resident Actually Pays
Ready to act on this? federal tax and Form 5472 support takes the filing, registered agent and paperwork off your desk.