California vs. Florida LLC — 2026 Cost, Tax & Migration Comparison

Comparison

California LLC vs. Florida LLC — head to head

All figures verified against official state portals as of 2026-05-08.

Factor	California (CA)	Florida (FL)
Formation filing fee	$70	$125
Annual fee	$800/year minimum	$138.75/year
First-year total cost	~$890	~$264
Ongoing annual cost	$800 min + $10/yr avg SOI + RA service	$138.75 + RA service
Online processing time	5–10 business days; Expedited available (additional fee)	Same business day; None needed — same-day included
State income tax	Yes	None
Franchise / gross receipts tax	$800 minimum every year; gross receipts fee above $250K	No franchise tax
Name reservation	$10 for 60 days	Not available
Publication requirement	None	None
Annual report deadline	$800 FTB franchise tax (April 15) + SOI every 2 years ($20) + FTB-568 return	Annual Report by May 1 ($138.75)
Filing portal	BizFile	Sunbiz
Name search	CA name search	FL name search
Governing statute	CA Corps Code §§ 17701.01 et seq.	FL Stat. Ch. 605

Cost analysis

California vs. Florida state-fee tradeoff

CA: $70 one-time + $800/yr minimum franchise tax. FL: $125 one-time + $138.75/yr annual report. CA year-1: ~$890. FL year-1: ~$264.

California annual obligations

What a California LLC must file each year

Due date: 15th day of 4th month after formation (year 1); April 15 each year thereafter
Fee: $800/year minimum
What to file: $800 FTB franchise tax (April 15) + SOI every 2 years ($20) + FTB-568 return
Failure consequence: 5% per month penalty (max 25%) plus interest. Continued non-payment results in LLC suspension — a suspended CA LLC cannot conduct business or enforce contracts.
Filing portal: California annual filing portal

Florida annual obligations

What a Florida LLC must file each year

Due date: Within 90 days of formation; every 2 years thereafter
Fee: $138.75/year
What to file: Annual Report by May 1 ($138.75)
Failure consequence: $250 penalty for failure to file. Continued non-filing leads to LLC suspension by the CA SOS.
Filing portal: Florida annual filing portal

California name rules

LLC name requirements in California

Required designators include LLC, L.L.C., or Limited Liability Company.
Name must be distinguishable from existing CA entities.
Name reservation: $10 for 60 days.
Search at CA name search.

Florida name rules

LLC name requirements in Florida

Required designators include LLC, L.L.C., or Limited Liability Company.
Name must be distinguishable from existing FL entities.
Name reservation: Not available.
Search at FL name search.

City-specific guides

California and Florida LLC formation by city

State rules apply statewide; city guides cover local context and additional permits.

California cities

Florida cities

Registered agents

Registered agent requirements: California vs. Florida

Requirement	California	Florida
Required	Yes	Yes
Who can serve	CA resident 18+ with in-state street address, or registered CA entity	FL resident 18+ with in-state street address, or registered FL entity
Self-serve allowed	Yes (address becomes public state record)	Yes (address becomes public state record)
Consent required	Consent or appointment captured in the formation filing	Consent or appointment captured in the formation filing
Commercial RA typical cost	$50–$150/yr	$50–$150/yr

Decision framework

How to choose: California vs. Florida LLC

Compare formation costs: CA $70 vs. FL $125 California's $70 Articles of Organization fee is $55 cheaper than Florida's $125. However, the formation fee is one of the least important cost factors in this comparison. California's $800 minimum franchise tax — owed the same year the LLC is formed — reverses the cost picture within the first year.
Model year-1 costs: CA ~$890 vs. FL ~$264 Year 1 total: California ~$890 ($70 filing + $800 franchise tax + $20 SOI). Florida ~$264 ($125 filing + $138.75 annual report). Florida is $626 cheaper in year one despite having a higher formation fee. The $800 minimum California franchise tax is the dominant cost driver.
Model the 5-year cost delta Year 1: CA ~$890 vs. FL ~$264. Year 2: CA ~$1,690 (+$800 franchise tax) vs. FL ~$402.75 (+$138.75). Year 3: CA ~$2,510 (+$800+$20 SOI) vs. FL ~$541.50 (+$138.75). Year 4: CA ~$3,310 (+$800) vs. FL ~$680.25 (+$138.75). Year 5: CA ~$4,130 (+$800+$20 SOI) vs. FL ~$819 (+$138.75). 5-year total: CA ~$4,130 vs. FL ~$819. California costs approximately 5× more than Florida over 5 years for a small LLC with no gross receipts surcharge.
Factor in state income tax — CA's largest ongoing differentiator Florida has no state income tax. California taxes LLC members' pass-through income at rates up to 13.3%. For a business with $100K in net income, California members face up to $13,300 more in state income tax annually. Over 5 years, a CA founder pays ~$66,500 more in state income taxes compared to a FL founder with the same income. This obligation applies to California residents regardless of where the LLC is formed.
Apply the operating-state rule for founders relocating from CA to FL Founders physically relocating from California to Florida can often eliminate California's tax obligations — but not retroactively. A California domiciliary who forms a Florida LLC still owes California taxes on California-source income and must complete a physical relocation (not just nominal). Once genuinely domiciled in Florida with no CA nexus, a FL LLC avoids the $800 franchise tax and CA income tax. California's FTB aggressively audits departing residents; a clean break requires genuine relocation.
Evaluate Sunbiz simplicity vs. FTB compliance complexity Florida's Sunbiz system is widely regarded as one of the simplest annual report filing experiences in the US — a one-page online form, $138.75, done in under 5 minutes. California's FTB compliance stack includes Form FTB-3522 ($800 franchise tax), Form FTB-568 (annual LLC return), and Form LLC-12 (biennial SOI). CA compliance requires professional tax preparation for most LLCs; FL compliance is typically DIY-friendly. The compliance cost difference is real beyond just the fee difference.
Choose your state and file Florida: file at efile.sunbiz.org (Form LLC-1, $125). California: file at bizfileonline.sos.ca.gov (Form LLC-1, $70 + $800 franchise tax within 4 months). After formation in either state, obtain an EIN at irs.gov/ein, draft an operating agreement, and open a business bank account. California filers must also file Form LLC-12 within 90 days.

Provenance

Statute basis & official sources

Last verified 2026-05-08.

California Corporations Code, Title 2.6 (Beverly-Killea LLC Act 2014), §§ 17701.01 et seq.; CA Rev. & Tax Code §§ 17941–17948 (LLC franchise tax and fees); Florida Statutes Ch. 605 (Florida Revised LLC Act); IRS guidance on single-member LLC disregarded entity treatment.

Why you need an LLC (either state)

Without entity formation, the business name is unprotected in both California and Florida; a competitor can register the same name as an LLC. Check availability and reserve before filing -- California: https://bizfileonline.sos.ca.gov/search/business ($10 for 60 days); Florida: https://search.sunbiz.org/Inquiry/CorporationSearch/ByName (Not available).
California: failure to file the Statement of Information within 90 days triggers a $250 penalty and eventual LLC suspension.
California: failure to pay the $800 franchise tax triggers a 5%/month penalty and LLC suspension — a suspended CA LLC cannot enforce contracts or defend itself in court.
Florida: failure to file the Annual Report by September 30 causes administrative dissolution and loss of the registered business name.

Official sources

FAQ

California vs. Florida LLC — common questions

Is it cheaper to form an LLC in California or Florida?

California has a lower formation fee ($70 vs. $125), but Florida is dramatically cheaper overall. Year 1: California ~$890 vs. Florida ~$264. Over 5 years: California ~$4,130 vs. Florida ~$819. The $800 California minimum franchise tax — owed every year regardless of revenue — is the dominant cost driver. Florida's only annual cost is the $138.75 annual report.

Does California have a franchise tax on LLCs?

Yes — California imposes an $800 minimum franchise tax on every LLC every year, including the year of formation. The first-year exemption that applied to LLCs formed 2021–2023 expired January 1, 2024. LLCs with California gross receipts of $250,000 or more owe an additional gross receipts fee stacking on top of the $800 minimum: $900 ($250K–$499,999), $2,500 ($500K–$999,999), $6,000 ($1M–$4,999,999), $11,790 ($5M+). Florida has no franchise tax on LLCs.

Can I form a Florida LLC to avoid California franchise tax?

Only if you genuinely relocate to Florida and cease California-source income. If you live in California or earn income from California operations, California will require you to register as a foreign LLC in CA ($70 + $800/yr franchise tax) — and California income tax applies to California residents regardless of LLC formation state. California's FTB aggressively audits departing residents. Forming in Florida only saves you money if you are genuinely domiciled in Florida with no CA nexus.

What is the 5-year cost difference between a California and Florida LLC?

For a small single-member LLC below the CA gross receipts surcharge threshold: Year 1: CA ~$890 vs. FL ~$264 (CA costs $626 more). Year 3 cumulative: CA ~$2,510 vs. FL ~$541.50 (CA costs $1,968.50 more). Year 5 cumulative: CA ~$4,130 vs. FL ~$819 (CA costs $3,311 more). These figures exclude state income tax on members — California's up-to-13.3% income tax adds thousands more annually for profitable LLCs.

How does Florida's annual report compare to California's biennial Statement of Information?

Florida's Annual Report ($138.75, due May 1 each year) is a simple one-page online form via Sunbiz — typically a 5-minute task. California's Statement of Information (Form LLC-12, $20, due within 90 days and every 2 years) is simpler in dollar terms, but California's full compliance stack includes FTB-3522 ($800 franchise tax), FTB-568 (annual LLC return), and the LLC-12 itself. Florida's compliance burden is lighter both in cost and complexity.

Does California have a state income tax on LLC members?

Yes — this is the largest ongoing cost differentiator between California and Florida. California taxes LLC members' pass-through income at rates up to 13.3% (the highest top marginal rate in the US). Florida has no state income tax. For a business with $100K in annual net income, California members face up to $13,300 more in state income tax annually. Over 5 years, that's up to $66,500 in additional state taxes — far exceeding the franchise tax difference.

Is California or Florida better for a founder relocating to save taxes?

Florida is significantly more favorable from a tax perspective. A founder who genuinely relocates from California to Florida eliminates: the $800/yr CA franchise tax, California income tax (up to 13.3%), and California's gross receipts surcharge. Florida's only ongoing LLC cost is the $138.75 annual report and no income tax. California's FTB aggressively audits departing residents — a genuine domicile change (not nominal) with no remaining CA-source income is required to fully exit CA tax obligations.

What are the registered agent requirements in California vs. Florida?

Both states require an LLC to maintain a registered agent with a physical in-state street address (no PO boxes) available during normal business hours. In California, the agent cannot be the LLC itself. In Florida, the registered agent's consent is captured within the Sunbiz Articles filing. In both states, you can self-serve as RA if you have a valid in-state address, but your address becomes publicly indexed. Commercial RA services start around $50–$150/yr in both states.

§ A Building permits by city

§ B LLC formation guides

§ C Companion tools

Disclaimer: Informational only — not legal advice. LLC laws change; verify with a California or Florida business attorney or CPA before filing.