Question

Total cost to form an LLC in California including state fees and additional services

Answer 1

When forming an LLC in California, several costs come into play, including state fees and additional services. Here’s a breakdown of the typical costs involved:

### **1. State Fees:**
- **Articles of Organization Fee:** $70
- **Initial Statement of Information Fee:** $20 (due within 90 days of filing the Articles of Organization)
- **California LLC Annual Franchise Tax:** $800 (annual fee due each year, regardless of income)
- **Additional Fees for late filings:** If you miss the deadlines for filing your Statement of Information, there are additional penalties.

### **2. Additional Services (Optional):**
- **Registered Agent Service:** If you choose not to be your own registered agent, this service typically ranges from $100 to $300 annually.
- **Operating Agreement (if created by a service):** $50 to $200.
- **Business Licenses and Permits:** Costs vary widely based on your business type and location. Licenses can range from $50 to several hundred dollars.
- **EIN (Employer Identification Number):** Free if you apply directly through the IRS, but some services charge around $50-$100 to obtain this for you.
- **Filing with the IRS for tax-exempt status (if applicable):** Varies based on the form and guidance you might need from professionals.
- **Legal/Accounting Services:** If you opt to work with an attorney or accountant for setup, this can range from a few hundred to several thousand dollars depending on complexity.

### **Summary of Costs:**
- **Minimum Cost to Form an LLC in California:**
- State Fees: $70 (Articles) + $20 (Statement of Information) + $800 (Franchise Tax)
- **Total = $890 (first year)** (without optional services)

- **With Additional Services:**
- Registered Agent: $100 - $300
- Operating Agreement: $50 - $200
- Business Licenses/Permits: Varies ($50 - $300+)
- EIN: $0 - $100
- Legal/Accounting Services: Varies ($200 - $2,000+)

You could be looking at a total ranging from **$890 to several thousand dollars** depending on the choices you make for additional services and complexities of your business.

### **Recommendation:**
It's advisable to research specific needs for your LLC and consult with a professional if necessary to get an accurate estimate based on your unique situation. Always check for the most current fees and regulations, as they can change.