# California LLC Formation

> A California LLC costs $70 to file but pays a minimum $800 annual franchise tax from its first year, files a Statement of Information within 90 days of formation and every two years after, and pays an additional LLC fee once California gross receipts exceed $250,000. An LLC formed elsewhere must also register in California and pay the $800 tax if it is 'doing business' there — for example with California employees, property or significant sales.

Practice: US Company Registration — https://www.industax.com/services/us-company-registration/

For founders with no California connection, a California LLC is usually the costliest choice. But if you have staff, an office or substantial customers in California, the state's tax applies regardless of where the LLC is formed.

We assess California nexus, form or register the LLC, and file the franchise tax, LLC fee returns and Statements of Information.

## Key facts

| Item | Detail |
| --- | --- |
| Filing fee | $70 |
| Minimum franchise tax | $800 a year |
| Statement of Information | Within 90 days, then every 2 years ($20) |
| LLC fee | On California gross receipts above $250,000 |

## Who needs this

- Businesses with California staff, offices or property
- Founders living in California
- Out-of-state LLCs doing business in California

## What's included

- Nexus assessment
- Formation or registration
- Franchise tax and LLC fee filings

## Documents

- Passport
- Business details
- California activity details

## Process

1. **Assess** — California nexus reviewed.
2. **Register** — LLC formed or registered.
3. **Comply** — Tax and statements filed.

## FAQs

### Can I avoid the $800 tax by forming in Delaware?

Not if the LLC is doing business in California. The state's 'doing business' rules look at where the LLC actually operates, not where it was formed.

### Is the $800 due in the first year?

Yes. The temporary first-year exemption for LLCs formed in 2021–2023 has ended, so new LLCs pay the minimum tax from their first year.

### What is the California LLC fee?

An additional annual fee based on California-source gross receipts above $250,000, rising in bands with revenue.

## Official sources

- California Secretary of State: https://www.sos.ca.gov/business-programs

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Canonical page: https://www.industax.com/services/us-company-registration/california-llc-formation
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.