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California LLC formation

Form an LLC in California.

The $70 filing fee is among the lowest in the country and it is beside the point. California charges every LLC an $800 minimum annual tax, in year one as well, and a great many guides still tell you otherwise because they were written before the exemption lapsed.

No charge until secure checkout. State fees shown before payment.

$70

State filing fee

Form LLC-1, one-time

$800/yr

Minimum annual tax

Owed in year one — no exemption

3–5 days

Processing time

Business days; online is faster

Why founders choose California

What a California LLC gives you.

1

Form here if you are doing business here

California's doing-business test does not care where you filed. Organising in California, or exceeding the sales, property or payroll thresholds, triggers the $800 regardless of your state of formation. A Wyoming LLC operating in California registers as a foreign LLC and pays anyway — so if you are here, forming here removes a layer rather than adding one.

2

The largest economy you can be inside

If your customers, staff or investors are Californian, being a California entity is the structure that matches reality. Everything below is the price of that, and it is worth paying when the business genuinely sits here.

3

Filing itself is cheap and fast

Seventy dollars and roughly three business days online is unremarkable in the best sense. California's cost is entirely in the annual tax, not in getting started.

Worth knowing before you choose

The $800 minimum annual tax is due for every taxable year, due on the 15th day of the fourth month of the year, and it is owed whether or not the business earned anything. The first-year exemption introduced by AB 85 applied only to LLCs registered between 1 January 2021 and 31 December 2023 and has expired — an LLC formed today owes $800 in its first year. A separate reduced first-year tax of $400 is legislated for LLCs filing in taxable years beginning on or after 1 January 2027 and before 1 January 2030, which does not help a 2026 formation. On top of that sits the LLC fee on California-source gross receipts: nothing below $250,000, then $900, $2,500, $6,000 and $11,790 at the $250k, $500k, $1m and $5m thresholds. Note that this is a fee on gross receipts, not profit. A Statement of Information ($20) is due within 90 days of formation and biennially thereafter, and failing to file it draws a penalty and can lead to suspension or forfeiture of the LLC. The estimated LLC fee on Form 3536 is due by the 15th day of the sixth month, with a 10% penalty for underpayment.

Pricing

Packages for your California LLC.

One-time service fee. The California state filing fee is separate and shown at checkout.

Starter

$129+ state fee

For founders who want a clean US LLC filed without extras.

  • US LLC filing (state fee separate)
  • No EIN included — self-file with the IRS, or add for $49
  • Guided founder intake
  • Order tracking
  • Document checklist
Choose Starter
Most popular

Growth

$249+ state fee

Most popular for founders who need everything to run correctly from day one.

  • Everything in Starter
  • EIN included — unlocks Stripe & US banking
  • Registered Agent (1 year)
  • Operating Agreement template
  • Wyoming or Delaware recommended
Choose Growth
Recommended

Complete

$499+ state fee

For founders who want full setup, compliance monitoring, and priority support.

  • Everything in Growth
  • Annual compliance monitoring
  • Compliance task reminders
  • Priority founder support
  • Business banking guidance
Choose Complete

FAQ

Questions about California LLCs.

Specific answers for forming and running an LLC in California.

View full pricing →

Do I really owe $800 in my first year?

Yes, for an LLC formed today. The AB 85 first-year exemption covered only LLCs registered between 1 January 2021 and 31 December 2023, and it has expired. Guides that still say the first year is free were written during that window and have not been updated. A reduced $400 first-year tax is legislated for taxable years beginning on or after 1 January 2027 and before 1 January 2030.

Can I form in Wyoming and avoid the $800?

Not if you are doing business in California. The Revenue and Taxation Code's test looks at whether you are organised or domiciled here, or exceed the thresholds for California sales, property or payroll. Meeting any one of them triggers the $800 regardless of where you filed, and you also have to register the out-of-state LLC. This is the single most commonly mis-sold point in US formation.

What is the LLC fee, and is it the same as the $800?

It is separate and stacks on top. The $800 is a minimum tax owed by every LLC. The LLC fee is charged on California-source gross receipts: $0 below $250,000, then $900, $2,500, $6,000 and $11,790 as you cross $250k, $500k, $1m and $5m. Because it is assessed on gross receipts rather than profit, a low-margin business can owe it in a bad year.

Is California ever the right choice for a founder abroad?

Rarely, and only when the business genuinely operates in California. If you have no California customers, property or payroll, you are paying $800 a year for nothing that Wyoming's $60 does not do better. We would rather tell you that than sell you the filing.

Do I need to understand US legal paperwork?

No. RazorFile keeps the process plain-language and organised so you know what is needed, what is paid, and what happens next at every stage of your order.

What is a Registered Agent and do I need one?

A Registered Agent is required for every US LLC, regardless of where you live. They receive official government and legal correspondence on your company's behalf at a physical address in your formation state. RazorFile provides this service.

Ready to form your California LLC?

Start with a simple package, add only what you need, and complete checkout in one guided flow. No charge until you confirm payment.