LLC Formation Guide
How to Start an LLC in California
California is home to more LLCs than any other state, with over 1.5 million active limited liability companies. The Golden State offers access to the largest consumer market in the US, but it also comes with the highest annual minimum franchise tax in the country at $800 per year.
Let Us Form Your California LLCCalifornia LLC Filing Fees and Costs
Here is what it costs to form and maintain an LLC in California. Last checked: November 2026.
| Fee Type | Amount |
|---|---|
| LLC Filing Fee (Articles of Organization) | $70 |
| Name Reservation | $10 - 60 days - Name reservation available online. Cannot be renewed for consecutive 60-day periods; must be at least 1 day between reservation periods. |
| Annual Report Fee | $20 |
| Annual Report Due Date | Biennial (anniversary month) |
| Registered Agent | Must designate an Agent for Service of Process. Must be an individual who resides in California or a registered 1505 corporate agent. A business entity cannot act as its own agent for service of process. The agent must have a physical street address in California. |
| Foreign LLC Registration | $70 - Registration - Out-of-State LLC. Must attach a valid certificate of good standing from the home jurisdiction. |
| Operating Agreement | Operating agreements are NOT filed with the Secretary of State. California Corporations Code does not explicitly require an operating agreement but it is strongly recommended. Not filed with SOS. |
Last checked: November 2026. Verify current fees with the California Secretary of State.
How to Form an LLC in California: Step by Step
Follow these steps to form your California LLC. The whole process typically takes 1 to 4 weeks depending on filing method and state processing times.
Pick a Name for Your California LLC
Your LLC name must include "Limited Liability Company," "LLC," or "L.L.C." and must be distinguishable from other business names on file with the California Secretary of State. You can search name availability for free on the bizfile Online portal at bizfileOnline.sos.ca.gov. If you want to reserve a name before filing, California charges $10 for a 60-day name reservation.
Designate a California Registered Agent
Every California LLC must maintain an agent for service of process. This can be an individual who lives in California or a corporation authorized to do business in California. The agent must have a physical street address in the state (no P.O. boxes). Many owners hire a professional registered agent service to keep their personal address off public records.
File Form LLC-1 with the Secretary of State
Submit your Articles of Organization (Form LLC-1) to the California Secretary of State. The filing fee is $70. You can file online through bizfile Online, by mail, or in person at the Sacramento office. Online filings are typically processed within 5 business days.
Draft Your Operating Agreement
California does not require LLCs to have an operating agreement, but creating one is strongly recommended. Your operating agreement should cover ownership percentages, member roles, voting rights, profit distribution, and procedures for adding or removing members.
Get Your EIN from the IRS
Apply for a free Employer Identification Number at irs.gov/businesses. You need an EIN to open a business bank account, hire employees, and file federal taxes. The online application takes about 10 minutes and your EIN is issued immediately.
File Your California Statement of Information
Within 90 days of forming your LLC, you must file an initial Statement of Information (Form LLC-12) with the Secretary of State. The fee is $20 online ($25 by mail). After the initial filing, you must file every 2 years. The Statement of Information updates the state on your LLC address, registered agent, and members or managers.
Franchise and Privilege Taxes
California LLCs must pay a minimum franchise tax of $800 per year to the Franchise Tax Board. Additionally, LLCs with total income of $250,000 or more may be subject to an LLC fee. Administered by the Franchise Tax Board, not the Secretary of State.. Check with the state Department of Revenue for current rates and filing requirements.
California-Specific Things to Know
- California charges an $800 minimum franchise tax every year, even if your LLC makes no money. This is separate from the $70 filing fee and is due to the Franchise Tax Board, not the Secretary of State.
- LLCs with income over $250,000 pay an additional fee based on total income, ranging from $900 to $11,790.
- California requires an initial Statement of Information (Form LLC-12) within 90 days of formation, then every 2 years after that.
- The $800 franchise tax is waived for the first taxable year of a newly formed LLC, but you still need to file the return.
California Franchise Tax Explained
Every California LLC must pay an $800 minimum franchise tax to the Franchise Tax Board (FTB) each year, regardless of income or activity. This is not a filing fee - it is an ongoing tax just for existing. The first year is exempt for newly formed LLCs, but you still need to file Form 3522. LLCs with California income over $250,000 pay an additional fee ranging from $900 to $11,790 on top of the $800 minimum.
Frequently Asked Questions About California LLCs
How much does it cost to start an LLC in California?
The California Secretary of State charges $70 to file Articles of Organization. However, the total first-year cost is at least $870 because California also imposes an $800 minimum franchise tax (waived for the first year). You should also budget for a registered agent service ($50 to $300 per year) and the $20 Statement of Information filing fee.
How long does it take to form an LLC in California?
Online filings through bizfile Online are typically processed within 5 business days. Mail filings take 2 to 4 weeks. California does not offer expedited processing for LLC formation documents as of November 2026.
What is the California franchise tax for LLCs?
Every California LLC owes a minimum $800 franchise tax per year to the Franchise Tax Board, regardless of income or activity. LLCs earning over $250,000 in California-source income pay an additional fee ranging from $900 to $11,790. The franchise tax is due by April 15 each year (or the 15th day of the 4th month after the start of your tax year).
Does California require an operating agreement?
No, California law does not require LLCs to adopt a written operating agreement. However, having one is strongly recommended, especially for multi-member LLCs. The operating agreement defines how the LLC is managed, how profits are distributed, and what happens if a member leaves.
Can I form a California LLC if I do not live in California?
Yes, non-residents can form a California LLC. However, if you are doing business in California (which includes having customers, employees, or an office in the state), you will need to register as a foreign LLC in California even if you formed the LLC in another state.
What happens if I do not file my California Statement of Information?
California charges a $250 penalty for failing to file the Statement of Information on time. If you still have not filed after 60 days, the Secretary of State can suspend your LLC, which means you lose the right to do business in California until you file and pay the penalty.
Ready to Start Your California LLC?
We handle the paperwork, registered agent, EIN, and compliance filings. Our Standard and Advanced build-out packages cover state filing fees. Call us or book a free consultation to get started.
Data Sources
- Filing Fee
- Name Reservation
- Registered Agent
- Annual Report
- Franchise Tax
- Expedite Options
- Operating Agreement
- Foreign Llc
- Portal
- California Secretary of State / Business Portal
- IRS EIN Application
Last checked: November 2026. Fees and requirements change. Always verify with the state before filing.