As of my last update, the total cost to form a Limited Liability Company (LLC) in California includes several fees and potential ongoing costs. Here’s a breakdown of the main costs involved:
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Filing Fee:
- The initial filing fee for the Articles of Organization (Form LLC-1) is typically $70.
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California LLC Annual Franchise Tax:
- After formation, California LLCs must pay an annual minimum franchise tax of $800. This fee is due each year, even if the LLC does not generate income.
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Statement of Information:
- LLCs are required to file an Initial Statement of Information (Form LLC-12) within 90 days of formation, which has a filing fee of $20. This must be updated every two years.
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Additional Fees:
- Depending on the services you use to file and set up your LLC, you might incur additional costs. For example, hiring a lawyer or using an online service can add to the total cost.
- If you choose to reserve a name before filing, there’s a fee of $10.
- If you need to obtain any business licenses or permits, those will have their own costs.
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Optional Costs:
- You may want to consider obtaining an Employer Identification Number (EIN) from the IRS, which is free if you apply directly. However, some services might charge for this.
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Ongoing Costs:
- Aside from the annual franchise tax and renewal of the Statement of Information every two years, you may also need to consider any additional business licenses or permits specific to your industry.
Always check the California Secretary of State's website or consult with a legal professional for the most current and accurate information, as fees and regulations may change.