Starting a Business in California

LLC filing: $70 | Corp filing: $100 | Business-friendly score: 4.8/10

Business Environment at a Glance

4.8/10

Business-Friendly Score

1% - 13.3%

Income Tax

7.25%

State Sales Tax

$16.00

Minimum Wage

Business Filing Fees in California

ItemCostDetails
LLC Filing Fee $70 One-time, filed with Secretary of State
LLC Annual Fee $800 Due annually to maintain good standing
Corporation Filing Fee $100 One-time, Articles of Incorporation
Corporation Annual Fee $800 Annual report/franchise tax

Tax Rates

State Income Tax1% - 13.3%
Corporate Tax Rate8.84%
State Sales Tax7.25%
Max Local Sales Tax3.25%
Minimum Wage$16.00/hr
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California Special Requirements

  • Annual $800 minimum franchise tax for LLCs and corporations
  • CalOSHA workplace safety requirements
  • Mandatory sexual harassment prevention training for employers with 5+ employees
  • Stricter environmental regulations for food and manufacturing businesses

Start Your Business in California

Form your LLC in California for $70 online.

Register with LegalZoom
Start Your LLC — $0 + State Fee