California
Taxes and business formation • USA 2025–2026
TL;DR
California at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in California.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $90.00 |
| LLC annual report fee | $20.00 |
| LLC annual report deadline | Last day of the company's registration-anniversary month |
| LLC dissolution fee | $0.00 |
| Corporation formation fee | $125.00 |
| Corporation annual report fee | $25.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in California
Corporation in California
Tax system of California
Income Tax
California levies a personal income tax with progressive rates ranging from 1% to 13.3% depending on income level.
Sales Tax
California's sales tax rate is 7.25%, but local taxes can push this up to 10.5% in some areas. Determining the taxable base and the applicable tax rate can be complex and requires a professional approach. We provide services for obtaining a Sales Tax Certificate and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
The average property tax rate in California is 0.74%–1.1% of a home's value. While the rate is low, the taxable base is high because California real estate is expensive.
Business Taxes
C-corporations in California are subject to a corporate tax of 8.84%, while S-corporations pay 1.5% of net income (with a minimum of $800 per year, even at a loss). The Statement of Information (California's equivalent of the Annual Report) is filed twice a year for corporations and once a year for LLCs.
Franchise Tax
A minimum of $800 per year, paid by all registered corporations and LLCs regardless of profit.
Excise Taxes
California levies excise taxes on items such as alcohol, tobacco, and fuel. These charges vary depending on the category of goods.
Frequently asked questions
Does California have a personal income tax?+
Yes. California levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in California?+
The state filing fee in California is $90.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a California LLC?+
The California annual report fee is $20.00, due Last day of the company's registration-anniversary month. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in California to open an LLC there?+
No. You do not need to live in California — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my California state return remotely?+
Yes. FinTaxes prepares and e-files federal and California state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
Starting a business in California?
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