California LLC and Corporate Taxes & Fees

When you're getting ready to set up your business in California, it's natural to wonder about the California corporate tax or the California LLC fee. These fees are covered in the sections below.

The California corporate tax rate is a flat 8.84%, which is comparable to other popular incorporation states. 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.

California Fees for Incorporation

There are fees for various aspects of the incorporation process in California. Reserving a name has a fee that is payable to the county or city where you are incorporating – the fee varies depending on your location.

In addition, the California articles of incorporation including a filing 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. Each year you must file an annual report and pay a filing fee of $25. Most corporations must also pay a minimum annual tax of $800 to the California Franchise Tax Board.

If you need specific business licenses, 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.

Keeping track of the multiple fees, when they are due, and who they should be paid to can be a hassle – fortunately, when you work with 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!

CA LLC Fees and Taxes

The LLC California cost is less than forming a corporation in California. 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.

LLCs in California are also subject to business licensing fees, which vary depending on the jurisdiction 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.

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 look at the various forms, fees, and taxes that are needed to start your California LLC or Corporation, it's easy to be overwhelmed. incorporate.com can help. We have years of experience with thousands of companies, and we can walk you step-by-step through the process of handling your California LLC fees or California fees for incorporation. Contact us to begin today!