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California corporation cost

Official fees for forming and keeping a corporation in California, from California Secretary of State, Business Programs Division.

1 year$925
3 years$2,575
5 years$4,225

Formation plus recurring state fees and taxes. Excludes registered agent costs. Adjust in the calculator.

California corporation cost at a glance

Forming a corporation in California costs $100 in state filing fees. After that, California charges a report fee of $25 a year plus $800 a year in state tax or license fees. Over five years the state's own charges come to $4,225, the highest of the 51 states with full corporation figures here (the median is $285). Registered agent service and local licenses are extra.

Line by line

ItemAmountOfficial source
Formation filing fee$100bpd.cdn.sos.ca.gov
Annual or biennial report fee
$20.00 filing fee plus $5.00 disclosure fee.
$25bpd.cdn.sos.ca.gov
Annual state tax or minimum franchise tax$800www.ftb.ca.gov
Foreign registration (another state's corporation)
Statement and Designation by Foreign Corporation, stock corporation.
$100bpd.cdn.sos.ca.gov

What to know

How to form a corporation in California

  1. Check the name. Search the California Secretary of State, Business Programs Division business records to confirm the name is free. State filing page.
  2. File the articles of incorporation. The California Secretary of State, Business Programs Division charges $100 to form a corporation.
  3. Name a registered agent. The agent needs a physical address in California. You can serve as your own.
  4. Get an EIN. The IRS issues it free on its own website.
  5. Stay in good standing. California charges a report fee of $25 a year plus $800 a year in state tax or license fees. See What to know above for the details that are easy to miss.

Other business types in California

An LLC costs $70 to start, then a report fee of $20 every 2 years plus $800 a year in state tax or license fees. A nonprofit corporation costs $305 to start including the IRS Form 1023-EZ fee, then a report fee of $20 every 2 years. Compare them in the calculator.

Registering an out-of-state corporation in California

A corporation formed in another state registers in California as a foreign corporation. The California Secretary of State, Business Programs Division charges $100 for the registration.

Common questions

How much does it cost to start a corporation in California?

The state filing fee is $100, and California then charges a report fee of $25 a year plus $800 a year in state tax or license fees.

What does a corporation in California cost over five years?

$4,225 in state fees and taxes, counting formation and every recurring charge.

How much does it cost to register a foreign corporation in California?

$100, paid to the California Secretary of State, Business Programs Division.

Compare with nearby states in cost

See every state ranked

Guides

What you'll need to start a corporation in California

  1. 1

    File your Articles of Incorporation

    $100

    The document that creates your corporation with the state of California.

    Have it done

    • Tailor Brands$0 + state feestate filing (Articles of Incorporation), processing in 14 business days. Registered agent $199/yr; EIN $99; Essential $199/yr and Elite $249/yr plans add faster filing and compliance
    • ZenBusiness$0 + state feestate filing (Articles of Incorporation), name check. Registered agent $99 first year, then $199/yr; EIN +$99
    • Zenind$0 + state feestate filing, name check, filing within 7 days. Registered agent and address +$99/yr; bylaws and certificates $99 unless on Standard or Premium
    • Registered Agents Inc$100 + state feestate filing, registered agent (1 yr), online account. Registered agent $200/yr after year 1
    • LegalZoomfrom $149 + state feestate filing (Articles of Incorporation), name search, tax consultation. Registered agent optional, price not stated on page

    Lowest listed price first, from each company’s own pricing page.

  2. 2

    Name a registered agent

    $0 yourself, or $99 to $200 a year

    A person or company with a street address in California who receives legal and state mail for the corporation.

    Do it yourself

    Be your own agent if you have a street address in California.

    Have it done

    • ZenBusiness$99/yrregistered agent (first year). Renews at $199/yr
    • Zenind$99/yrregistered address, mail scanning and forwarding. $99 per year
    • Registered Agents Inc$200/yrannual report filing. $200 per year

    Lowest listed price first, from each company’s own pricing page.

  3. 3

    Get an EIN (tax ID)

    Free

    The federal number banks and the IRS use for your corporation.

    Do it yourself

    Apply on IRS.gov. The IRS states you can get one "in minutes for free".

  4. 4

    File the annual report

    $25 a year plus $800 a year tax

    The recurring filing that keeps the corporation in good standing.

  5. 5

    Open a business bank account

    $0 a month

    Keeps business money separate from personal money. Banks ask for your EIN.

    Options

    • Bluevine$0/mono minimum balance, no overdraft fees. Opening deposit: no minimum balance requirement
    • Mercury$0/mono minimum balance, no account opening fee. Opening deposit: none stated
    • Relay$0/mono minimum balance. Grow $30/month; opening deposit none (no minimum balance)

    Lowest listed price first, from each company’s own pricing page.

  6. 6

    Optional: elect S corporation status

    Filed with the IRS

    The IRS describes Form 2553 this way: a corporation or other entity eligible to be treated as a corporation files it to make an election under section 1362(a) to be an S corporation.

    Do it yourself

    IRS Form 2553.

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