Calculate the true cost of forming and maintaining a California LLC including the $800 minimum franchise tax.
Your Result:
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California has the highest minimum franchise tax in the nation at $800 per year, regardless of income. This calculator shows the true cost of California LLC formation and maintenance.
First-year costs include $70 filing fee plus $800 franchise tax (waived for some new LLCs), plus $20 Statement of Information. Annual costs are $800+ every year.
Compare these costs carefully with Wyoming ($60 annual) or other low-cost states before deciding where to form your LLC.
$70 to file Articles of Organization with the California Secretary of State.
$800 minimum annual tax, due even if your LLC has zero income or losses.
$20 fee due within 90 days of formation, then every 2 years.
$890+ for most LLCs ($70 + $800 + $20). Higher if you need professional services.
$800+ annually, making California one of the most expensive states for LLC maintenance.
Q: Why is California so expensive?
A: California charges an $800 minimum franchise tax regardless of income, plus additional fees based on gross receipts above $250,000.
Q: Can I avoid the $800 tax my first year?
A: Some new LLCs qualify for a first-year exemption, but must still pay in subsequent years regardless of income.
Q: Is California worth the cost?
A: Only if you specifically need to do business in California. For most non-residents, Wyoming or Delaware offer better value.
Q: What if I can't pay the franchise tax?
A: Your LLC will be suspended, losing the right to do business in California until taxes and penalties are paid.
Q: Are there additional fees for high income?
A: Yes, LLCs with gross receipts over $250,000 pay additional fees ranging from $900 to $11,790 annually.