The Fees and Filing Requirements for Your California LLC
Depending on the specifics of your California business, you’ll be required to pay certain fees and fulfill different filing requirements. Some of these costs are payable to the California Secretary of State, while others are due to the federal or California government. We’ve summarized the most common requirements and fees on this page.
Note that California business licenses and permits might need to be paid when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.
Initial Filing and Fees for Forming an LLC in California
When you first incorporate your business in California, you’ll need to file an LLC with the CA Secretary of State and pay a California filing fee. Here are the current fees and filing times for California:
||State Filing Time
||Expedited Filing Time
||30 Business Days
||11 Business Days
When you form your CA LLC through Incfile, we automatically charge you this fee and forward it to the California Secretary of State when we file your incorporation paperwork.
Some states allow you to form your LLC more quickly by paying a rush fee. You can compare state filing times and fees here, including expedited fees for California.
Incorporate your California LLC through Incfile today
Getting an EIN/Tax ID for Your California LLC
Every California LLC should have a unique employer identification number (EIN). These are provided by the Internal Revenue Service, and you use them when filing taxes, opening a business bank account and paying employees. You can get one yourself at no cost from the IRS or have Incfile obtain one on your behalf.
Get an EIN for Your California LLC through Incfile
Foreign Qualification to Operate in a State Outside California
If you’re expanding your California LLC beyond the borders of the state, you will need a Foreign Qualification or Certificate of Authority to operate in another state. These are typically necessary if you have a physical presence, employees or banking in a different state than California. Fees and requirements for foreign qualifications depend on each state’s rules. Incfile provides a complete Foreign Qualification service for any state.
Get a Foreign Qualification/Certificate of Authority through Incfile
Annual Reporting and Fees for Your California LLC
Most states need to file an annual (or other periodic) report with their Secretary of State. California is a little different and requires you to file a couple of different reports.
- California Statement of Information: File this report every other year with the CA SOS
- California Franchise Tax: File this report every year along with an $800 payment
Statement of Information
Due Date: During six-month period ending on last day of anniversary month of incorporation or qualification.
Filing Fee: $20
Important:The initial Statement of Information filing is due within 90 days of the entity formation date.
California Franchise Tax
Franchise Tax Fee: $800 (minimum)
$800 payment for the LLC Franchise Tax is due by 15th day of the 4th month after your LLC is filed. The month your LLC is filed counts as Month 1, regardless if you file on the 1st of the month, the last of the month, or any day of the month, really. This means that if you were to file your LLC on March 22nd, then you must pay the $800 fee no later than June 15th (in this example, March is Month 1, April is Month 2, May is Month 3, and June is Month 4). Then, every year after your first payment $800 LLC Franchise Tax will be due by April 15th. You pay the $800 LLC Franchise Tax using Form 3522 called the LLC Tax Voucher.
(We do not assist in the filing of the Franchise Tax Report)
Incfile can also complete and file your California Statement of Information on your behalf. We cannot assist with your Franchise Tax Report.
Incfile’s California Report Filing Service
California Business Licenses and Permits
Your California LLC may need certain licenses and permits to comply with specific requirements. These business permits and licenses might be issued by California, regional or federal organizations. Some of the associated fees only need to be paid once, while others have ongoing charges.
Permits and licenses vary based on:
- The industry your California LLC operates in (e.g., restaurants will need health permits)
- The location of your California LLC (state, county or city) (e.g., a license to conduct business from the city of Sacramento)
- The type of business that you run (e.g., healthcare providers must meet HIPAA requirements)
You can research these permits and licenses yourself or use Incfile’s Business License Research Package, which includes:
- A complete report on all the licenses, permits and tax registrations your California LLC will need
- The application forms you will need to file with the California, regional and federal licensing authorities
Remember that operating your business without the required licenses can expose you to risks and fines from federal, California and local governments.
Incfile’s California Business License Research Package
Create an Operating Agreement for Your California LLC
An Operating Agreement is a business document that covers how the business will be run, how managers and members are chosen, rights and duties of members and several other key areas.
Your California LLC should have an Operating Agreement. If you’re interested in having your Operating Agreement created for you, Incfile can draft a general Operating Agreement template when you choose to form your California business. You can choose to make changes to the template based on your unique requirements.
Learn more about operating agreements.
Ad Hoc California Fees or Requirements for Your CA LLC
There are several other fees or requirements that you may need to meet during the life of your California LLC. These ad hoc fees will only be payable in specific circumstances, which we’ve listed below.
To Obtain a Fictitious Name for Your California LLC
If you want your CA business to trade under a different name, you can file a form with your county administration. Incfile can file this form on your behalf.
Incfile’s California Fictitious Name Service
To Change the California Agent for Service of Process for Your CA LLC
Your California LLC needs a Registered Agent, which must be appointed when you first incorporate your LLC. You can also switch to a new CA Registered Agent later. Incfile provides a complete California Registered Agent service.
Incfile’s California Agent for Service of Process Service
To Reserve a Name for Your California LLC
If you don’t want to form your CA business right away, you can reserve a name with the California Secretary of State. You will need to pay a small fee to do this.
To Amend Certain Facts About Your California LLC
Your business formation documents state certain facts about your California business when it was originally formed. Over time, these facts might change — if they do, you need to file “Articles of Amendment” with the California Secretary of State. You can do this yourself or have Incfile complete the filing on your behalf.
Areas you might want to file California Articles of Amendment for include:
- Adding, removing or changing a California LLC member or manager
- Changing the business address of your LLC
- Altering the stated business activities of your California LLC
Incfile’s California Articles of Amendment Service
To Get a Certificate of Good Standing for Your California LLC
Some organizations will request that you prove your California LLC’s compliance with laws and tax requirements. If you need to prove you have met your commitments, you will need a “Certificate of Good Standing” from the California Secretary of State. Incfile can obtain a certificate on your behalf.
Incfile’s California Certificate of Good Standing Service
The fees listed above detail all the charges that a standard CA LLC will be required to pay. In some unusual circumstances, there may be other one-off, periodic or ad hoc fees not listed above.
Of course, your California LLC will also probably need to pay self-employment, payroll, federal, state and sales taxes, but we will cover that when we talk about taxes for CA LLCs.
FAQs About California LLC Fees
What Happens to the State Fees That I Am Charged When Forming My California LLC?
We charge you for this fee at cost and then pay the fee to the Secretary of State on your behalf when forming your California business.
Do I Need to Pay an Annual Report Fee Every Year?
Usually, yes. Most states require you file a report for your LLC every year. Some states require filing biennially (every other year), though a handful don’t require annual reports. You can find out more on the compliance page for your state.
Who Will I Need to Get Business Licenses and Permits From for My California LLC?
It depends on various factors including:
- The type of business you run
- Where you are located
- Governing organizations in your industry
- Federal, state and local regulations
That’s why our business license research package is so useful. It explores all of these areas for you and provides a comprehensive overview of exactly what your California LLC needs to be compliant.