California LLC Cost Calculator
Estimate the cost of forming and maintaining an LLC in California
California Calculator
Start your business right
Updated for 2025 with real California rates, brackets, and regulations
Forming an LLC in California carries one of the highest costs in the nation, thanks to the $800 annual minimum franchise tax — payable to the Franchise Tax Board regardless of whether your LLC earns any revenue. On top of that, LLCs with gross revenue over $250,000 pay additional fees: $900 ($250K-$500K), $2,500 ($500K-$1M), $6,000 ($1M-$5M), or $11,790 ($5M+). These fees are based on GROSS revenue, not profit. A $300K-revenue LLC pays $1,700/year ($800 + $900) before earning a single dollar of profit. This calculator shows your total annual LLC cost in California.
Calculate Your CA Tax
First Year Cost
$1,020
Annual Franchise Tax
$800
LLC Fee (revenue-based)
$0
Articles of Org
$70
Annual Ongoing
$970
5-Year Total
$4,900
Note
$800 min even if $0 revenue
Breakdown
Insight
A California LLC costs $1,020 in year one and $970/year ongoing. The $800 minimum franchise tax applies even if your LLC earns $0 — this is the most controversial business cost in CA. New LLCs are exempt from the $800 in their first year (since 2021). File Form 568 annually with the Franchise Tax Board. Consider: Nevada LLCs avoid this tax but may still owe CA tax if doing business in CA.
AI Explanation
What This Means
Based on default inputs, the California LLC Cost Calculator shows a first year cost of $1,020. Key figures: Annual Franchise Tax: $800, LLC Fee (revenue-based): $0, Articles of Org: $70, Annual Ongoing: $970, 5-Year Total: $4,900, Note: $800 min even if $0 revenue.
Key Insights
A California LLC costs $1,020 in year one and $970/year ongoing. The $800 minimum franchise tax applies even if your LLC earns $0 — this is the most controversial business cost in CA. New LLCs are exempt from the $800 in their first year (since 2021). File Form 568 annually with the Franchise Tax Board. Consider: Nevada LLCs avoid this tax but may still owe CA tax if doing business in CA.
What You Can Do
Enter your actual figures in the calculator above for a personalized breakdown. Consider consulting a tax professional for comprehensive planning, especially for complex situations involving multiple income sources or deductions.
Keep In Mind
This calculator provides estimates based on 2026 rates. Actual tax liability may vary based on credits, exemptions, and other factors not captured here. This is for educational purposes only and should not be considered tax advice.
How the California LLC Cost Calculator Works
The California LLC Cost Calculator uses 2026 tax rates, brackets, and deductions specific to California to provide you with an accurate estimate of your tax obligations. Unlike generic federal-only calculators, this tool accounts for the unique tax structure that California residents face.
Formula
Annual LLC Cost = $800 Franchise Tax + LLC Fee (based on gross revenue) + SOS Filing ($20 biennial) + City Business LicenseSimply enter your financial details above, and the calculator instantly computes your results using the latest available data. All calculations happen directly in your browser — your personal information is never sent to any server or stored anywhere.
Why Use a California-Specific Calculator?
State-Specific Rates
Uses real 2026 California tax brackets, rates, and thresholds — not generic national averages that miss state-level nuances.
Local Programs & Exemptions
Factors in California-specific programs, exemptions, and deductions that national calculators simply don't account for.
Instant & Private
All calculations run locally in your browser. No account required, no data stored, no waiting for results.
AI-Powered Explanations
Get a plain-English breakdown of your results with actionable insights you can actually use for financial planning.
What's Included
$800 Franchise Tax
Mandatory annual minimum regardless of income — $0 revenue still pays $800
Revenue-Based Fees
Additional LLC fees of $900-$11,790 based on GROSS revenue brackets
Entity Comparison
Compare LLC vs S-Corp vs C-Corp total annual costs in California
Frequently Asked Questions
How much does it cost to start an LLC in California?
Filing: $70 (Articles of Organization with SOS). Then immediately: $800 franchise tax (due by 4th month). Annual ongoing: $800 franchise tax + LLC fees if revenue >$250K + Statement of Information ($20/biennial). First-year minimum: $870.
Can I avoid the $800 franchise tax?
Not legally for an active LLC. California briefly waived the first-year $800 for LLCs formed 2021-2023, but this may have expired. You could form in Nevada/Wyoming and register as a foreign LLC in CA, but you still pay the $800 as a foreign entity.
What are the LLC fee brackets in California?
Based on GROSS (not net) revenue: <$250K = $0 fee (just $800 franchise tax), $250K-$500K = $900, $500K-$1M = $2,500, $1M-$5M = $6,000, $5M+ = $11,790. These are in ADDITION to the $800 franchise tax.
Is an S-Corp cheaper than an LLC in California?
S-Corps pay 1.5% net income tax (minimum $800) instead of the LLC fee structure. For high-revenue/low-margin businesses, S-Corp is often cheaper. For low-revenue businesses, it's about the same ($800 minimum either way).
When is the $800 franchise tax due?
For new LLCs: by the 15th day of the 4th month after filing. For existing LLCs: by April 15 each year (same as tax returns). Late payment incurs penalties and interest. The fee is NOT deductible as a business expense on your CA return.
Important Information for California Residents
Tax laws in California can change annually. This calculator is updated regularly to reflect the latest 2026 rates and regulations, but you should always verify important financial decisions with a qualified California tax professional or CPA.
This tool is designed for informational and educational purposes. While we strive for accuracy using official California Department of Taxation data, the results should be used as estimates for planning purposes only. Your actual tax liability may differ based on credits, special circumstances, and legislative changes that occur after our last update.
For filing deadlines, payment schedules, and official forms, visit the California Department of Taxation and Finance website. If you have complex tax situations involving multiple states, business income, or significant investment gains, professional guidance is recommended.
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