The total cost to form a single-member LLC in California includes several components:
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Filing Fee: The primary cost is the filing fee for the Articles of Organization (Form LLC-1), which is $70.
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Immediate Statement of Information: After forming your LLC, you must file an initial Statement of Information (Form LLC-12) within 90 days. There is a filing fee of $20 for this form.
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Annual Franchise Tax: California imposes an annual franchise tax of $800 on all LLCs, which is due each year, regardless of income.
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Cost for Additional Services (Optional): If you choose to use a registered agent, obtain an operating agreement, or seek legal or accounting help, those costs can vary widely.
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Business Licenses and Permits: Depending on your business type and location, you may need additional licenses or permits, which can incur further costs.
So, the minimum initial cost just to form the LLC and meet initial filing requirements is approximately $90 ($70 for the Articles of Organization and $20 for the Statement of Information). However, you should also account for the annual $800 franchise tax in your planning. If you consider additional services or fees, the total expense can increase significantly.
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