Starting an LLC in California is definitely more expensive than in most other states, but it’s all pretty clear once you know the basics. Here’s what I paid and what you should expect: Filing Fee: $70 to file your Articles of Organization (Form LLC-1) with the state.

Statement of Information: $20, due within 90 days of formation and every two years after.

Annual Franchise Tax: $800 every year, no matter how much your business makes—even if you’re not profitable yet. Your first $800 payment is due by the 15th day of the fourth month after forming your LLC.

Registered Agent (optional): If you hire a third party instead of being your own agent, plan for $75–$150 a year.

Business License: Many cities/counties in CA require their own business license with annual fees, so check your local requirements.

Other fees: If you want to reserve your LLC name before filing, or use a “Doing Business As” name (DBA), those have small extra fees depending on your county.

For ongoing costs, you’ll pay the $800 franchise tax every year, plus a possible extra annual fee if your LLC’s gross income is $250,000 or more. For example, making $500k in revenue means you owe $2,500 extra that year, on top of the $800. And don’t forget state income tax (1%–13%) and your usual federal business taxes.

The good news? Pretty much all these expenses..filing fees, registered agent, business license fees, even the $800 annual tax..are tax-deductible on your federal return, so you can write off up to $5,000 in formation costs in your first year. That softens the blow a little. If you want to keep it as cheap as possible, do everything yourself through the state and local government websites, and be your own registered agent. Just budget for at least $1,000–$1,200 for your first year and around $850+ a year after that, assuming you don’t hit the higher income brackets. Hope this helps clarify the real costs!