California. The most beautiful expensive mistake.

The character of the state

In 1848 a sawmill worker named James Marshall found a few flakes of gold in the American River, and within a year three hundred thousand people were streaming to the West Coast. The Gold Rush of 1849 turned California into a state almost overnight, and it shaped its character for good: California is where you go to find the next big thing. First gold, then oil, then Hollywood, then semiconductors, then the internet. No place on earth has produced more global corporations out of garages.

Anyone who does business there knows the flip side: California is also the state that holds out its hand most confidently. The highest taxes in the US, the densest regulation, a franchise tax that accepts no excuses. The Golden State knows what it's worth, and it makes you pay for it.

The prestige of the address is real: an invoice from California carries the shine of Silicon Valley and Hollywood. What that shine costs every year is spelled out, unvarnished, in the warning above.

Who California still makes sense for

There are three situations in which our clients deliberately choose California. First, when business partners or platforms expect a Californian presence, for example in tech or entertainment, where the address opens doors. Second, when real activity in California is planned anyway, because then the registration duty there applies regardless of where the company was formed. Third, simply out of conviction: some people want their piece of America right here, and we respect that. In every other case, the recommendation in the warning above applies. Feel free to talk your situation through in a consultation (held in English only).

Do you really need a California LLC?

The honest question before you order: if what draws you to California is mainly the look of it, you don't need a California LLC for that. Your business address is yours to choose, in any state, for any LLC. A Los Angeles address is available from any of the many virtual business address providers for around $20 to $150 a month; you book it yourself, directly with the provider, and it is not part of our package. Pair it with a Wyoming LLC and you get the same presence, plus anonymity in the register and the strongest statutory asset protection in the US.

There are two things an address cannot replace, though, and they belong to the full picture. First: your contracts and invoices show the company's state of formation. If they need to say "California" in so many words, you really do need the California LLC. Second: an address is appearance, not substance. If you actually keep premises, staff or ongoing business operations in California, you create a real point of connection there, with reporting and tax consequences, regardless of where the LLC was formed. Situations like that belong in a consultation (held in English only) before you order.

And if your reason for California is a personal or business connection: good choice. That is exactly what this page is for.

No hidden fees, no surprise invoices for extra work

Our flat fee covers every service you need to form your California LLC and run it for the first 12 months, including the California franchise tax and the Statement of Information. You'll find a detailed description of the services here. Bought separately, these services cost over $7,000. With us: one flat fee, $3,370, done.

Formation and taxes

Forming your California LLC takes around 5 to 8 days. The first Statement of Information is due within 90 days of formation; we file it for you, and the fee is included in the package.

Structured correctly, your California LLC pays no income tax in the US. Please read our detailed explanation of how the exempt LLC is taxed. The franchise tax is a separate matter: it is not an income tax but a charge for the privilege of being formed in California, and it is always due. Whether and to what extent the LLC's profits are taxed in your country of residence is a question for your tax adviser or for a consultation, held in English.

Transparency in the register

There is no anonymity in California: the Statement of Information names the LLC's managers or members, and that information is open to the public. If discretion is a priority for you, look at Wyoming, New Mexico or Delaware, where your name appears in no public register. And a point that applies everywhere: banks and payment providers verify your identity regardless of the register. More under anonymity.