Well, I plan on incorporating in Delaware if that's what's agreed upon, which, I believe, has a much much lower annual fee. Thanks for the advice.
http://www.sos.ca.gov/business/corp/corp_faq.htm
"Do I have to register (qualify) my out of state (or country) corporation in California?"
And it looks like the LLC doesn't avoid the fee:
http://www.sos.ca.gov/business/llc/llc_faq.htm
"Every limited liability company which is doing business in California or has filed Articles of Organization or an Application for Registration with the Secretary of State's Office is subject to the annual limited liability tax of $800."