LLC Fees California

LLC Fees California, What to Expect – Your LLC Guru!

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Today’s Post:  LLC Fees in the State of California

Hello, this is your LLC Guru, welcome to our site! We believe in helping people get started in business worry-free and protected!  We help regular people get their own LLCs quickly, inexpensively, and with confidence!  If you need an LLC or are even thinking about one, you are in the right place here at YourLLCGuru.com, we’ll help you get your own LLC in about 10 minutes!

Before we start I would like to mention that this is in no way legal or tax advice. 

So, back to our topic of LLC fees in California.

 California charges an initial formation fee of $70.00 to get your LLC started the first year.  California requires that every LLC in California pay an annual base tax of $800 per year.  It is important to note that the State of California requires this every year until you cancel your LLC, it is not a one-time fee.  However, if you cancel your LLC within one year of setting it up with the State, you can file a Short Form Cancellation and not be subject to the annual $800 tax.

So we are at $70 to initially form your LLC and an $800.00 “tax” every year no matter what.  But that is not all, California also charges an additional “FEE” per year for LLCs that make over certain income limits. 

If your LLC makes more than $250,000 in a year, then more money is due to the State of California.  As of the time of this video, LLCs earning between $250,000 & $499,999 will owe the State $900.  

$500,000 & $999,999 will owe $2,500.00

$1million to $4,999,999 will owe $6,000 and over $5 million the fee amount is $11,790.

The information provided in the video is for DOMESTIC Limited Liability Companies. California also recognizes LLCs for Foreign (Out-of-State or Out-of-Country) but again, for this video, we are focusing only on Domestic LLCs in the State of California.

As you can see, the state of California has multiple fees for the formation and maintenance of a Domestic LLC. 

Perhaps at this point, it would be beneficial to look at some of the benefits you get with an LLC now that we have gone over most of the fees the State of California requires and it is also important to note that not all States have these same requirements.  Other than the State fees, LLC’s come with little to no downside and take only around 10 minutes or so to get with the proper guidance. 

By setting up your business as an LLC:

  • You get huge liability protection! This alone is what it’s all about!
  • You get simplicity comparable to a sole proprietorship!
  • You avoid the double taxation most corporations pay!
  • Your business will gain legitimacy!
  • You can sleep sound at night knowing you made the right choice and that you & your family are protected from unnecessary liability related to your business activities!

We believe that everyone in business deserves the protection an LLC can provide.  We are making the business world a better place one LLC at a time!

If you’re doing ANY form of business without the protection of a business entity then get yourself covered today! An LLC is the perfect choice for nearly every business out there!

In my next post, we will unpack more details around LLC’s.  Please check out some of my other posts or videos on YouTube so you can learn more helpful information about LLCs and how to use them to protect yourself in business. This is your LLC Guru thanks for reading!

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