LLC in California Cost:- Do you wish to form a limited liability company (LLC) in California or seek to do business in California as an LLC formed in another state? then there are certain key things you need to know. There are fees you have to pay to various fees to the California Secretary of State’s office.
We will be listing fees that are in effect as of May 1, 2018. Howbeit, both the type and amount of fees, are subject to change at any time.
California LLC Filing Options
To file for an LLC in California you have the following options:
Free PDF Download
Do it Yourself Online
12 Day California LLC
This includes registered agent service, operating agreement, and much more.
LLC in California Cost – What is the Cost of Starting an LLC in California?
What you need to do, to form an LLC in California, is to file Articles of Organization with the California Secretary of State and pay the sum of $70 filing fee. Understand that most businesses may also be required to pay an $800 franchise tax. Then in addition, within the 90 days of filing the Articles of Organization, the LLC is expected to file a statement of information and pay a $20 in the fee.
Also note that your LLC is expected to designate a registered agent in California and if your LLC meets the demands for having a property staffed office in the state, you may need to have an owner or employee serve as the registered agent. If not, you must hire a registered agent, which costs about $50 to $500 per year.
How Long Does it Take to Start a California LLC?
It can be anywhere from a few hours to a few weeks, based on how you choose to file. Filing in person means you can pay for 1-day or same-day processing.
If you file online it currently takes 12 business days on average. If you would rather wait after your file, you can mail your California Articles of Organization, and your filing will end up at the bottom of the lowest priority stack, which might take few weeks.
How Much Does it Cost to Register a Foreign LLC in California?
LLCs that are formed in another state that desire to conduct business in California, are to register as a foreign LLC with the Secretary of State. This includes filing an Application in order to Register a Foreign Limited Liability Company (Form LLC – 5) as well as paying a $70 filing fee. Additionally, within 90 days of filing the Application to Register, the LLC is to file a Statement of Information as well as pay a $20 in the fee.
What is the Costs of Maintaining a California LLC?
After you have registered your LLC, there may just be additional fees, some of which are recurring to operate in California.
The $800 franchise tax fee has to be paid annually. But also there is an additional fee if your LLC is being taxed either as a sole proprietorship or a partnership and has income from California operations which are proportional to or greater than $250,000. Now the amount of this fee differs based on the amount of income. In case your LLC has elected to be taxed either as a C or S corporation, then it is subject to California corporate income tax.
Every two years after filing the initial Statement of Information, the limited liability company is to pay a fee of $20, and file either a Statement of Information or a Statement of No Change (Form SI-550).
If you happen to hire a registered agent, those associated fees must also be paid each year.
In the event where certain changes are made by the LLC, like amending the Articles of Organization or changing the LLC’s name, the Secretary of State has to be intimated using the appropriate form and a fee, usually $30 for most changes must be paid. There are also fees for less common changes, like mergers of two LLCs, or the merger of an LLC as well as any other type of entity.
In order to either an LLC in California or register a foreign LLC, the basic minimum cost to get the business fully functional for the first year is $890. Thereafter, for subsequent years, the minimum cost is a franchise tax of $800.
For the most current information on California LLC forms, fees, and taxes, visit the Secretary of State’s website.