California vs Nevada: $800+ Tiers vs $350 Stack + $4M Shield

Cost to form and keep

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

California: what else to know

• 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).

Full rules: Start a California LLC.

Nevada: what else to know

• Corporations pay a $500 State Business License instead of $200, so their minimum is about $650.
• Commerce tax applies only to Nevada gross revenue above $4 million, at 0.051%–0.331% by industry.
• No personal or corporate income tax.

Full rules: Nevada commerce tax.

Verdict

No California footprint: Nevada saves thousands yearly. Any CA office, employee, or $757k of sales: you pay California too, and the move saves nothing.

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