Should I choose California or Florida?

Head-to-head • Updated 2026

By Srikanta M.Reviewed against FTB / SOS sources: September 2026Methodology

California vs Florida: $800 Floor vs 5.5% Over $50k

Florida taxes corps at 5.5% above a $50k exemption with pass-through LLCs; California taxes everything from dollar one.

Should I choose California or Florida?: Profitable C-corps often save five figures moving FL-side; LLCs save the $800 but must still mind the May 1 $400 cliff.

	California	Florida
LLC floor	$800 + tiers	$138.75 report only
Corp tax	8.84% / $800 min	5.5% over $50k exempt
Costliest deadline	June 15 LLC fee estimate (10% penalty)	May 1 annual report ($400 late fee)

	Formation	Annual minimum	Due
California	$70 LLC Articles (LLC-1) + $20 Statement of Information; corporations $100 + $25	$800	Apr 15 / Jun 15
Florida	$125 Articles of Organization (LLC); $70 Articles of Incorporation	$138.75–$150 report	May 1 ($400 late)

Before registered-agent fees and before any tax on profit. Operating in a state means paying it no matter where the entity was formed.

The $800 is owed every year the entity exists, including an LLC’s first year for 2024+ formations; corporations are exempt in their first year only.
LLCs add the § 17942 fee on California receipts of $250,000 or more: $900, $2,500, $6,000, or $11,790.
C-corps pay 8.84% of California net income when that exceeds $800; S-corps pay 1.5%.
Out-of-state entities doing business here pay the same amounts after registering ($70 LLC, $100 corporation).

The annual report opens January 1; filing after May 1 adds a $400 late fee.
C-corps pay 5.5% of Florida net income above a $50,000 exemption; LLCs and most S-corps pay no Florida income tax.
No personal income tax.

Profitable C-corps often save five figures moving FL-side; LLCs save the $800 but must still mind the May 1 $400 cliff.

Test where you actually owe tax with the nexus checker before choosing a home state.

State SOS / FTB / Division / Comptroller fee schedules; calculators on this site