Ready to Form Your LLC in California?
When you're preparing to open a business in California, it's natural to wonder how the cost of incorporating in California will be affected by fees, such as the California corporate tax or the California limited liability company (LLC) fee.
The California corporate tax rate is a flat 8.84%, which is comparable to other state incorporation rates. There are also exemptions, deductions, and other strategies to reduce that rate, and there are other significant advantages depending on the type of corporation formed.
Keep reading for the details about the cost of incorporating in California below.
California Fees for Incorporation
There are fees for various aspects of the incorporation process in California.
California Reserving Business Name Fee
There are fees for various aspects of the incorporation process in California. Reserving a name has a fee (which varies by location) that is payable to the county or city where you are incorporating. – the fee varies depending on your location.
California Incorporation Filing Fee
In addition, filing the California articles of incorporation including a filing carries a fee of $100, plus a $15 handling fee. You must also file an initial report giving detailed information about your company, which includes a fee of $25 and a $75 service fee.
California Annual Report Filing Fee
Each year you must file an annual report and pay a filing fee of $25.
California Annual Tax Fee
Most corporations must also pay a minimum annual tax of $800 to the California Franchise Tax Board.
California Business License Fee
If you need specific business licenses when incorporating in California, there will likely be fees associated with them. Most cities and jurisdictions charge between $50 – $100 for a small business license, and depending on your type of business you may need industry-specific licenses as well.
Be Sure to Pay All California Fees on Time
Keeping track of the multiple fees, associated due dates, and where payments should be sent, can be a hassle. Fortunately, when you work with the experts at incorporate.com to set up your California corporation, we will include these fees in your purchase price. We will also make sure fees are paid in a timely manner to the correct state or local offices, and that all applicable licenses are applied for. Start working with us today!
California LLC Fees and Taxes
The LLC California costs less than forming a corporation in California, but there are some fees and taxes to be aware of, including:
California LLC Fee
The CA LLC fee is $85, payable to the secretary of state. In addition, a California LLC fee is also due for the statement of information, a document that must be submitted within 90 days of LLC formation and carries a filing cost of $20.
California LLC Business Licensing Fees
LLCs in California are also subject to specific business licensing fees, which vary depending on the jurisdiction where you form and operate your company in. A small business license will generally cost between $50 – $100, and you may need industry-specific business licenses for your LLC, as well.
California LLC Ongoing Costs: Annual Taxes and Fees
Finally, having an LLC means you are also required to pay ongoing fees. The California LLC fee schedule includes a California LLC annual fee, which is $800 annually, and is due within 3.5 months of forming your LLC and then every April 15th thereafter.
For tax purposes, a California LLC with a single owner is treated as a sole proprietorship while an LLC with multiple owners is classified as a partnership. The California LLC tax fee is based on the LLC's total income received from all worldwide sources.
As you review the various forms, fees, and taxes that are needed to start your California LLC or corporation, it's easy to be overwhelmed. But incorporate.com is here to help. We have years of experience assisting thousands of companies, and we can walk you through the process, step-by-step. Contact us today and we can begin handling your California LLC or incorporation fees.
Note: For tax purposes, a California LLC with a single owner is treated as a sole proprietorship, while an LLC with multiple owners is classified as a partnership. The California LLC tax fee is based on the LLC's total income received from all worldwide sources.