California LLC Comparisons — Entity Types & State vs. State

Understanding your options before forming is especially important in California because of the $800 annual franchise tax — once you form, you are committed to that annual cost until formal dissolution. For formation steps, see our CA LLC guide.

Entity Comparisons

• LLC vs. Sole Proprietorship
• LLC vs. Corporation
• LLC vs. S-Corp
• LLC vs. Partnership

State Comparisons

• California vs. Delaware
• California vs. Wyoming

The California Decision Factor

The $800 annual franchise tax means you should only form when you are committed to operating the business. Unlike Texas ($300 one-time, $0 ongoing) or Wyoming ($100 one-time, $60/year), California LLC formation is a $800/year commitment starting in year two.