Form an LLC in California
California has a low filing fee but imposes an $800 annual franchise tax on all LLCs regardless of income. For many software founders, this is the most expensive state to maintain an LLC in. If you live in California, you'll owe the $800 franchise tax whether you form in CA or another state. Forming in Wyoming can save on the formation cost, but the franchise tax applies to all California-resident LLCs.
Total cost
$220 ($150 + $70 state fee)
State filing fee
$70
Processing time
5-7 business days
Annual cost
$800/year (franchise tax) + $20 biennial report
Why form in California
- Lowest filing fee among popular states ($70)
- World's largest tech ecosystem (Silicon Valley, SF, LA)
- If you live and operate in California, forming locally is simplest
- Avoids foreign LLC registration if you're a CA resident
- Strong consumer protection laws
Things to consider
- $800 annual franchise tax applies to ALL California LLCs regardless of income
- If you form in another state but live in CA, you still owe the $800 franchise tax
- High state income tax (1%-13.3%)
- Biennial Statement of Information ($20) due every two years
- Most expensive state for ongoing LLC maintenance
Best for
California residents who want the simplest setup by forming in their home state. Note: forming in Wyoming instead costs $250 vs $220 for CA, but doesn't avoid the $800 CA franchise tax if you're a CA resident.
How to form an LLC in California with QuickBiz
- 1Choose your LLC name (must include "LLC" or "Limited Liability Company")
- 2We file Articles of Organization with California Secretary of State ($70)
- 3We set up your registered agent via Northwest (included)
- 4We apply for your EIN with the IRS (free)
- 5We generate your operating agreement (designed for software businesses)
- 6You receive all documents in your QuickBiz dashboard
Frequently asked questions
How much does it cost to form an LLC in California?
The California state filing fee is $70. With QuickBiz, the total cost is $220 ($150 service fee + $70 state fee). However, California imposes an $800 annual franchise tax on all LLCs that starts in your first year.
What is the California $800 franchise tax?
California charges an $800 minimum franchise tax to all LLCs every year, regardless of revenue or profit. This applies even if your LLC earns $0. It's due by the 15th day of the 4th month after your tax year begins.
Can I avoid the California franchise tax by forming in Wyoming?
If you live in California, no. California requires all LLCs doing business in the state (including those formed elsewhere) to pay the $800 franchise tax. Forming in Wyoming saves on formation cost but doesn't avoid the CA franchise tax.
Is California a good state to form an LLC for software businesses?
California is fine if you live there and want simplicity. The $70 filing fee is low, but the $800/yr franchise tax makes it the most expensive state for ongoing LLC costs. Many CA-based founders form in Wyoming ($250 total, $60/yr) and register as a foreign LLC in CA when needed.
Ready to form your California LLC?
$220 ($150 + $70 state fee). Everything included. Takes about 5 minutes.
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