California vs Delaware

Delaware is cheaper: $510 in state fees for the first year versus $870 in California. Delaware has the lower state income tax (6.6% vs 13.3%). Pick Delaware if you plan to raise venture capital (as a C-corp); otherwise California is the better LLC for most small businesses.

Filing the Articles of Organization in California costs $70. After that, expect an $800 minimum franchise tax each year, plus a $20 Statement of Information every two years. $800 minimum franchise tax (Form 3522, due the 15th day of the 4th month after formation, then yearly) plus a $20 Statement of Information every two years. LLCs with California income above $250,000 also pay a gross-receipts fee ($900 to $11,790). A commercial registered agent, if you need one, is typically $50–$300 a year extra.

Yes. California requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.

Filing the Certificate of Formation in Delaware costs $110. After that, every LLC pays a flat annual LLC tax of $400 (raised from $300 for tax year 2026), due June 1. You also need a Delaware registered agent, typically $50–$300 a year.

Yes. Delaware requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.