Compare corporations, LLCs, and DBAs side by side to choose the right structure for your California business.
Choosing a business structure is one of the first decisions you make. This chart compares the three most common options in California — corporation, LLC, and DBA — across the factors that matter most: liability, cost, taxes, and compliance.
| Factor | Corporation | LLC | DBA |
|---|---|---|---|
| Separate legal entity | Yes | Yes | No |
| Personal liability protection | Yes | Yes | No |
| Filed with | Secretary of State | Secretary of State | County clerk |
| Formation fee | $100 | $70 | $40–$60 |
| Annual franchise tax | $800 | $800 | None |
| Statement of Information | Every year ($25) | Every 2 years ($20) | Not required |
| Name protection | Statewide | Statewide | County only |
| Can raise investment / issue stock | Yes | Limited | No |
| Tax flexibility | C corp or S corp | Pass-through or corporate | Owner's tax return |
| Best for | Companies seeking investors | Most small businesses | Sole proprietors using a trade name |
| If you need… | Consider |
|---|---|
| Liability protection with simple upkeep | LLC |
| To raise venture capital or issue shares | Corporation |
| A trade name for a sole proprietorship | DBA |
| Statewide name protection | LLC or Corporation |