total cost to form a single-member LLC in California

1 answer

As of my last update in October 2023, the costs to form a single-member LLC in California typically include:

  1. Filing Fee: The primary cost is the filing fee for the Articles of Organization, which is $70.

  2. Statement of Information: You are required to file an Initial Statement of Information (Form LLC-12) within 90 days of forming your LLC, which has a filing fee of $20.

  3. California LLC Annual Franchise Tax: Every year, LLCs in California must pay an annual minimum franchise tax of $800.

  4. Additional Costs: Depending on your needs, you may also want to consider costs for:

    • Obtaining an Employer Identification Number (EIN): Free if done directly through the IRS.
    • Business licenses or permits: Varies based on your business type and location.
    • Legal or professional fees: If you choose to hire a lawyer or use a service to help you form your LLC.
    • Registered agent fees: If using a commercial registered agent service.

In summary, the upfront costs to form a single-member LLC in California are approximately $90 ($70 for the Articles of Organization + $20 for the Initial Statement of Information), plus the annual $800 franchise tax. Always check for the most current fees and verify with the California Secretary of State or a legal professional, as fees and laws can change.