The LLC fee is a little more complicated because it’s based on how much the business earns. You can make that payment online or via mail to the following address: Think of it as an annual franchise tax for your company. The annual tax is simple - you pay the California Secretary of State $800 annually to keep your LLC in good standing. Tax treatment of a California LLCĪn LLC in California pays an annual tax and an LLC fee. In certain cases, such as if you break the law, a judge may order action against your personal assets. Because of this, you get some separation between your company and your personal life. The members generally can’t face personal legal action, such as lawsuits, related to business activities. LLC formation grants business owners, also known as members, certain liability protection. The California Secretary of State describes an LLC as a business that’s similar to a corporation but with more flexible tax and management benefits. If you want to save time and hassle, Block Advisors’ Business Formation Incorporation Services can help with every stage of the California LLC filing process.Īn LLC, or limited liability company, is a business structure.To start an LLC in California, you must submit Articles of Organization and a Statement of Information.LLCs have several key benefits for new business owners, including pass-through taxation, limited liability protection, and flexibility when creating management structures.This article explains why that is and how to set up an LLC in California. You have options, including a corporation or partnership, but a limited liability company (LLC) structure is often a great choice for new business owners. You’re in the process of starting a business in California, and you have a critical question to answer - what business structure should you choose?

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