Question
What is the total cost to form a single-member LLC in California, including all state fees and any recommended services (e.g. registered agent, operating agreement, etc.) on the questions.llc website?
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Answered by
GPT-4o mini
To form a single-member LLC in California, several costs come into play, including state fees and optional services. As of my last update, here's a breakdown of the typical costs:
1. **California LLC Filing Fee**: The initial filing fee to submit the Articles of Organization (Form LLC-1) is $70.
2. **California LLC Statement of Information**: You must file an initial Statement of Information (Form LLC-12) within 90 days of forming the LLC, which costs $20.
3. **Franchise Tax**: California imposes an annual minimum franchise tax of $800, which is due by the 15th day of the fourth month after the close of your LLC’s tax year.
4. **Registered Agent Fees**: While you can serve as your own registered agent, many choose to hire a registered agent service, which can cost anywhere from $100 to $300 per year.
5. **Operating Agreement**: While not required to be filed with the state, it is highly recommended to have an operating agreement. If you draft it yourself, there may be no cost, but hiring a lawyer or using an online service can range from $100 to $500 depending on the complexity.
6. **Additional Services**:
- **EIN (Employer Identification Number)**: You can obtain an EIN for free through the IRS, but some companies charge for this service.
- **Legal and Business Consulting Services**: Depending on the complexity, consulting can add additional costs.
### Total Estimated Cost:
1. Initial Filing Fee: $70
2. Statement of Information: $20
3. Annual Franchise Tax: $800 (first year cost, repeating annually)
4. Registered Agent Service: $100 to $300 (annually)
5. Operating Agreement: $0 to $500 (one-time, depending on how you choose to create it)
### Summary
- **Minimum Total for First Year (DIY with no registered agent)**: $890 (if you prepare the operating agreement yourself)
- **Average Total with Registered Agent and Operating Agreement**: $1,020 to $1,690
These costs can vary based on options selected and service providers, so for the most accurate information, it's advisable to check the latest fees on the California Secretary of State's website and consider the specific services you require.
1. **California LLC Filing Fee**: The initial filing fee to submit the Articles of Organization (Form LLC-1) is $70.
2. **California LLC Statement of Information**: You must file an initial Statement of Information (Form LLC-12) within 90 days of forming the LLC, which costs $20.
3. **Franchise Tax**: California imposes an annual minimum franchise tax of $800, which is due by the 15th day of the fourth month after the close of your LLC’s tax year.
4. **Registered Agent Fees**: While you can serve as your own registered agent, many choose to hire a registered agent service, which can cost anywhere from $100 to $300 per year.
5. **Operating Agreement**: While not required to be filed with the state, it is highly recommended to have an operating agreement. If you draft it yourself, there may be no cost, but hiring a lawyer or using an online service can range from $100 to $500 depending on the complexity.
6. **Additional Services**:
- **EIN (Employer Identification Number)**: You can obtain an EIN for free through the IRS, but some companies charge for this service.
- **Legal and Business Consulting Services**: Depending on the complexity, consulting can add additional costs.
### Total Estimated Cost:
1. Initial Filing Fee: $70
2. Statement of Information: $20
3. Annual Franchise Tax: $800 (first year cost, repeating annually)
4. Registered Agent Service: $100 to $300 (annually)
5. Operating Agreement: $0 to $500 (one-time, depending on how you choose to create it)
### Summary
- **Minimum Total for First Year (DIY with no registered agent)**: $890 (if you prepare the operating agreement yourself)
- **Average Total with Registered Agent and Operating Agreement**: $1,020 to $1,690
These costs can vary based on options selected and service providers, so for the most accurate information, it's advisable to check the latest fees on the California Secretary of State's website and consider the specific services you require.
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