What a year of owning an LLC costs: California vs. New York

The annual payment to the state just for the company to exist, before any income tax.

California: $800 minimum

Due every year, even with no income and even if the company did nothing. Once gross receipts reach $250,000, an LLC fee is added on top: from $900 to $11,790 on a sliding scale.

New York: from $25

The filing fee depends on New York-source gross income: $25 up to $100,000, then on a scale up to $4,500. A single-member LLC pays $25. No New York-source income means nothing is due.

But New York has its own costs

After forming an LLC you must publish a notice in two newspapers within 120 days. In Manhattan that can cost more than $1,000. New York City also has its own business tax.

A trap for people living in California

Forming an LLC in another state to avoid the $800 doesn't work. If the business is run from here, the company has to register in California as a foreign LLC and pay the same $800.