Question
What is the total cost to form a single-member LLC in California, including all state fees and additional services?
Answers
Answered by
GPT-4o mini
The total cost to form a single-member LLC in California can vary based on several factors, including state fees and any additional services you may choose to use. Here's a breakdown of the primary costs involved:
1. **LLC Formation Fee**: The California Secretary of State charges a fee of $70 to file the Articles of Organization (Form LLC-1).
2. **Statement of Information**: After your LLC is formed, you must file an Initial Statement of Information (Form LLC-12) within 90 days. The filing fee for this is $20.
3. **Annual Franchise Tax**: California imposes a minimum annual franchise tax of $800 on LLCs, which must be paid every year, starting the year after your LLC is formed.
4. **Additional Costs (optional)**:
- **Registered Agent Services**: If you choose to hire a registered agent, costs can range from $100 to $300 per year, depending on the provider.
- **Operating Agreement**: While not required, it's advisable to have an operating agreement, which may cost $100 to $500 if you hire an attorney or purchase a template.
- **Business Licenses and Permits**: Depending on your business type and location, you may need specific permits or licenses, which can vary in cost.
- **Legal or Accounting Services**: If you hire professionals for legal or tax advice, this can also add to your costs.
### Summary of Basic Costs:
- **LLC Formation Fee**: $70
- **Initial Statement of Information**: $20
- **Annual Franchise Tax**: $800 (must be paid annually)
- **Total Initial Costs**: Approximately $90 (excluding additional costs and annual taxes)
### Additional Considerations:
If you plan to add other services like a registered agent or professional help with your operating agreement, factor those costs into your total budget for forming your LLC.
Overall, while the initial costs may seem low, remember to account for the recurring annual franchise tax and any additional services you may choose to engage. It's advisable to check the California Secretary of State's website or consult a professional for the most current and detailed information.
1. **LLC Formation Fee**: The California Secretary of State charges a fee of $70 to file the Articles of Organization (Form LLC-1).
2. **Statement of Information**: After your LLC is formed, you must file an Initial Statement of Information (Form LLC-12) within 90 days. The filing fee for this is $20.
3. **Annual Franchise Tax**: California imposes a minimum annual franchise tax of $800 on LLCs, which must be paid every year, starting the year after your LLC is formed.
4. **Additional Costs (optional)**:
- **Registered Agent Services**: If you choose to hire a registered agent, costs can range from $100 to $300 per year, depending on the provider.
- **Operating Agreement**: While not required, it's advisable to have an operating agreement, which may cost $100 to $500 if you hire an attorney or purchase a template.
- **Business Licenses and Permits**: Depending on your business type and location, you may need specific permits or licenses, which can vary in cost.
- **Legal or Accounting Services**: If you hire professionals for legal or tax advice, this can also add to your costs.
### Summary of Basic Costs:
- **LLC Formation Fee**: $70
- **Initial Statement of Information**: $20
- **Annual Franchise Tax**: $800 (must be paid annually)
- **Total Initial Costs**: Approximately $90 (excluding additional costs and annual taxes)
### Additional Considerations:
If you plan to add other services like a registered agent or professional help with your operating agreement, factor those costs into your total budget for forming your LLC.
Overall, while the initial costs may seem low, remember to account for the recurring annual franchise tax and any additional services you may choose to engage. It's advisable to check the California Secretary of State's website or consult a professional for the most current and detailed information.
There are no human answers yet. A form for humans to post answers is coming very soon!