Opening a small business in California is always an interesting experience, still, there are some expenses being made while legalizing it. Below, I reveal the amount of cost every small business registering in California is likely to incur.

Business Filing Structure

The cost to register your business structure with the California Secretary of State can range from $0 to $900 depending on the type:

– Sole Proprietorship: $0

If you are a sole business person, you can start carrying business activities under your name and do not need to form your business legally. Remember that there is no legal shield available for sole traders with reference to legal liabilities.

– General Partnership: $70

While the filing fee for a DBA is $70, you will also have to pay another $70 to file your Fictitious Business Name Statement with your county clerk’s office to reserve a name for the partnership.

– Limited Partnership: $70 + $150

A limited partnership has what being a general partner and limited partners. Truth be told, you will be charged $70 for the fictitious business name filing as well as a $150 filing fee at the Secretary of State. 

– Limited Liability Company (LLC): $90

An LLC also assists in reducing your personal credit risk. The Articles of organization is processed at $90 in California.

– Corporation: $100

Deep compliance for California incorporation means paying $100 for submitting the articles of incorporation.

Ongoing Fees

Depending on the legal form of your businesses, you will have to meet annual fees or taxes such as an annual minimum franchise fee of $800 for both corporations and LLCs in California.

License & Permit Fees

 Due to this, depending on the type of business you are running, you could need to secure particular municipal permits or licenses in order to operate your California small business successfully.

In conclusion, it costs nothing to file register a small business as sole trader but to formally incorporate a business with the state the lowest amount is $70. Other local demands may entail extra charges across the year to the member countries.