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California Entity Formation Pricing

Last updated: October 2026

Bay Legal, P.C. forms California entities on a flat fee, quoted before any work begins and inclusive of the state filing fees. That last part matters when you are comparing quotes: most firms quote a legal fee and add the Secretary of State’s charges on top, so a lower headline number often is not lower. An LLC or a standard corporation is $1,750 all in. Professional corporations start at $3,500 because the licensing rules add real work.

Every formation fee below includes preparation and filing of the Articles, the core governing document, the EIN application, state filing fees, and compliance guidance on what to do next.

What does it cost to form a California entity?

Entity type Flat fee Regulating board Documents included
LLC $1,750 — Articles of Organization, operating agreement, Statement of Information
Corporation (C-corp or S-corp) $1,750 — Articles of Incorporation, bylaws, Statement of Information
Professional corporation (general) From $3,500 Varies by profession Articles, bylaws, Statement of Information, Moscone-Knox compliance documents
Medical or doctor corporation $3,500 Medical Board of California As above, plus fictitious name permit guidance and ownership compliance
Nursing corporation $3,500 Board of Registered Nursing As above, plus mandatory naming compliance
Physician assistant corporation $3,500 Physician Assistant Board As above, plus mandatory naming compliance
Chiropractic corporation On request Board of Chiropractic Examiners As above, plus BCE Certificate of Registration application
Legal corporation $5,500 State Bar of California As above, plus State Bar registration and security for claims

All figures are flat rates inclusive of state filing fees. Expedited filing is available for an additional $1,000, with payment in full required before documents are filed.

Why do professional corporations cost more?

Because California regulates them twice. Every professional corporation is governed by the Moscone-Knox Professional Corporation Act at Corporations Code section 13400 and following, which restricts who may hold shares, who may serve as a director or officer, and what the corporation may be called. On top of that, each licensing board imposes its own rules — and they differ.

The naming rules alone show why this is not a form-filling exercise. A nursing corporation’s name must contain “nursing” or “registered nursing.” A law corporation must register separately with the State Bar of California and carry specified security for claims. A medical corporation faces ownership and profession-mix restrictions that determine which other licensed professionals may hold shares and in what proportion.

Get any of it wrong and the filing is rejected, or worse, accepted and later found non-compliant by the licensing board. The higher fee reflects the compliance work, not a longer document.

Eligibility is not universal. Professional entity formation is available only where the client’s licence type, ownership structure, and regulatory position qualify under California law. The Medical Board of California and the State Bar of California publish the requirements for their respective professions, and we confirm eligibility before quoting.

Which board regulates your profession?

Naming the board matters, because it is where the second half of the work happens. Forming the corporation with the Secretary of State is step one; satisfying the licensing board is what makes it lawful to practise through it — and the boards differ on whether registration is even required.

Profession Corporation type Regulating board Board registration required?
Physicians and surgeons Medical corporation Medical Board of California No separate certificate; fictitious name permit required to use a trade name
Registered nurses and nurse practitioners Nursing corporation Board of Registered Nursing No separate certificate; naming rules apply
Physician assistants Physician assistant corporation Physician Assistant Board No separate certificate; naming rules apply
Chiropractors Chiropractic corporation Board of Chiropractic Examiners Yes — Certificate of Registration required before rendering services
Attorneys Law corporation State Bar of California Yes — registration and security for claims required
Dentists Dental corporation Dental Board of California No separate certificate; naming rules apply
Accountants Accountancy corporation California Board of Accountancy Yes — registration required

Chiropractic corporations are the clearest example of why the board matters more than the filing. A chiropractic corporation is formed under Moscone-Knox like any other, but Business and Professions Code section 1050 and following adds a second layer: the corporation must obtain a Certificate of Registration from the Board of Chiropractic Examiners before it renders any professional services. Two filings, two agencies, and the Secretary of State half is the easy one.

The naming rules are stricter still. A chiropractic corporation’s name must include a shareholder’s name together with the word “chiropractic” and a corporate designator, and it may not trade under a fictitious name or DBA at all — the Board issues no fictitious name permits. That is unusual: a medical corporation can obtain a fictitious name permit from the Medical Board and trade under a practice name, and most professionals assume the same is available to them. It is not.

Professions not listed above are covered too, including dentists, optometrists, veterinarians, physical therapists, psychologists, marriage and family therapists, architects, and engineers. Each has its own board, its own naming rules, and its own ownership restrictions.

What is not included in the formation fee?

Stated plainly, because a flat fee is only useful if the boundary is clear.

  • Ongoing state taxes. Every California LLC and corporation owes an $800 annual minimum franchise tax under Revenue and Taxation Code section 17941 for LLCs and section 23153 for corporations, payable to the state whether or not the business is profitable. That is a tax, not a fee, and no formation service includes it.
  • The LLC income fee. An LLC with California total income above $250,000 owes a further graduated fee under Revenue and Taxation Code section 17942.
  • Negotiated or customised documents. The formation fee covers our standard operating agreement or bylaws. Multi-class structures, investor terms, shareholder agreements, and buy-sell provisions are quoted separately, flat-fee.
  • Accounting and tax filings. The firm does not provide accounting, bookkeeping, or tax preparation, and works alongside your CPA on the S election and related questions.

The engagement letter defines the scope of each flat fee precisely. Work outside that scope is quoted before it starts, never after.

What ongoing services are available?

Service Annual fee What it covers
Standard annual compliance filing $700 Preparation and filing of required state annual reports and entity renewals. Begins on the first anniversary of formation
Registered agent service $150 A California registered agent for service of process
Virtual mail scanning $450 Digital scanning and email delivery of business mail received at the virtual address

Fictitious Name Permit preparation and filing for medical corporations is available from $250.

How does the flat fee compare with filing it yourself?

Filing Articles with the California Secretary of State is something you can do without a lawyer, and for a straightforward single-member LLC with no partners and no outside money, some people reasonably do. What the fee buys is the part that is not the filing: choosing the right entity in the first place, an operating agreement or bylaws that actually govern the relationship between owners, and confirmation that a licensed professional is not about to form a structure California does not permit them to use.

Two failures account for most of the remedial work the firm sees. A licensed professional files an LLC through an online service, which California does not allow for professional practice, and it has to be unwound. Or two founders form an entity with a fifty-fifty split, no deadlock provision, and no buy-sell terms — and discover the gap years later, at the point they stop agreeing. Both cost multiples of the formation fee to fix.

Who handles entity formation at Bay Legal?

Managing attorney Jayson R. Elliott leads the firm’s business practice, covering entity selection, formation, governing documents, and investor structuring. Where a formation matter later becomes a dispute between owners, it moves to the litigation group under lead litigation attorney Evan Livingstone.

Bay Legal, P.C. serves businesses statewide from offices in Palo Alto and Los Angeles, including founders across San Francisco and the wider Bay Area. Many consultations are free, and where a consultation carries a fee, that payment is generally credited toward flat-fee work.

Frequently Asked Questions

How much does it cost to form an LLC in California?

Bay Legal charges a flat $1,750, inclusive of state filing fees, covering the Articles of Organization, an operating agreement, the EIN application, and the Statement of Information. Separately, the state charges every LLC an $800 annual minimum franchise tax, payable whether or not the business is profitable. That tax is not part of any formation fee.

Does the fee really include state filing fees?

Yes. The figures quoted are all-in for the formation itself. This is worth checking when comparing quotes, because many firms quote a legal fee and add Secretary of State charges separately, which makes a lower headline number higher in practice. What is not included is ongoing state tax, which nobody can include.

Why does a professional corporation cost more than a regular one?

Because California regulates professional corporations under the Moscone-Knox Act and each licensing board adds its own rules on ownership, directors, officers, and naming. A nursing corporation’s name must contain “nursing”; a law corporation must register with the State Bar. The additional fee reflects compliance work specific to your profession, not a longer document.

What is not included in the flat fee?

Ongoing state taxes, including the $800 annual minimum franchise tax and the LLC income fee above $250,000. Also customised or negotiated documents — investor terms, shareholder agreements, buy-sell provisions — which are quoted separately at a flat fee. And accounting or tax filings, which the firm does not provide.

How long does formation take?

Standard processing depends on the Secretary of State’s current turnaround, which varies through the year. Expedited filing is available for an additional $1,000 where the timeline matters, with payment in full required before documents are filed. Professional corporations can take longer where a licensing board registration is also required.

Can you tell me which entity I should form?

That is the consultation, and it is usually free. The answer turns on whether you are taking outside investment, whether you hold a professional licence, how many owners there are, and what your revenue is likely to be — an LLC and a corporation carry different California tax consequences at different revenue levels.

Related Questions

Do you form entities in Delaware?

Yes, though a Delaware entity doing business in California must also register here and pays the California $800 minimum on top of Delaware’s fees. It is generally worth it only for companies raising institutional capital.

What if I already formed the wrong entity?

Conversion or reorganisation is available and is quoted separately. The most common case is a licensed professional who formed an LLC through an online service, which California does not permit for professional practice.

Is the consultation fee credited against the work?

Many consultations are free. Where one carries a fee, that payment is generally credited toward flat-fee services if you go ahead.

Do you help with business licences and permits?

Entity formation with the Secretary of State is separate from city and county business licensing, seller’s permits, and industry-specific licences. We advise on what your business will need; the applications themselves are quoted separately.

Talk to a California business formation attorney

The entity decision is cheap to make well and expensive to unwind. To discuss which structure fits and get a flat-fee quote before any work begins, call the office nearest you or email intake.

Bay Legal, P.C. — serving California statewide

Northern California office

667 Lytton Ave Ste 3, Palo Alto, CA 94301

(650) 668-8000

Southern California office

3211 Cahuenga Blvd W Ste 212, Los Angeles, CA 90068

(213) 668-8000

Intake: intake@baylegal.com

Fax: (650) 963-0041

Website: https://baylegal.com

Fees shown are current as of the last updated date above and are subject to change. Professional entity formation is available only where the client’s licence type, ownership structure, and regulatory requirements qualify under California law. This page is general information about California law and does not constitute legal advice or create an attorney-client relationship. Bay Legal, P.C. does not provide tax advice. For advice on your specific situation, contact a licensed California attorney and a qualified tax professional.

Disclaimer: This article is for general informational purposes only and is not legal, tax, or financial advice. Reading it or contacting Bay Legal, PC does not create an attorney-client relationship. It addresses California law only; other states differ. The law changes, and figures and procedures described here may be updated after this article’s publication date.

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