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How to start an LLC in California

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Filing a California LLC costs $70. The bill that matters comes after: every California LLC owes the Franchise Tax Board an $800 annual tax, whether it earns anything or not. You file Articles of Organization (Form LLC-1) with the California Secretary of State on bizfile Online. Within 90 days you file a $20 Statement of Information, and you file it again every two years after that. The first $800 is due by the 15th day of the 4th month after you file, and every April 15 after that for a calendar-year LLC. The 2021-2023 first-year exemption has ended. For an LLC whose first taxable year begins between January 1, 2027 and December 31, 2029, California cuts the first year's tax from $800 to $400. Every year after the first, and every LLC formed before 2027, pays the normal $800. There's no newspaper publication requirement for the LLC itself.

Best next step

For most founders, start with the California filing itself

If you live and operate in California, the safest move is to file in California directly. Compare LLC services only if you want help with privacy, document handling, or someone to do the filing for you.

Safest default
File directly with California Secretary of State, Business Programs Division if you live and operate in California.
Cheaper viable option
Handle the filing yourself if you're comfortable managing the agent for service of process role and the state paperwork.
Avoid overpaying
Don't buy bundled extras until you confirm the filing fee, the annual schedule, and whether a service actually solves a problem for you.
See official filing instructions Compare LLC services
Filing fee
$70 online or by mail
The same $70 fee applies online, by mail, or in person. In-person drop-off in Sacramento adds a $15 special handling fee.
Processing time
A few business days online (varies)
Standard estimate. Expedited available.
Annual report
$20 every 2 years
Statement of Information: first one within 90 days of filing, then every 2 years. Separate from the $800 annual tax to the FTB.
Publication
None
No newspaper requirement

Official California resources

Primary filing source

Start here

File Articles of Organization on bizfile Online

Open this first. It's the official source for the filing itself.

bizfileonline.sos.ca.gov

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How to form an LLC in California

Forming, registering, filing, or applying for an LLC in California: it's all the same process, and these are the steps in the order you'll do them.

Before you file

What you'll need

To form a California LLC, you will need a bizfile Online account, an available name ending in LLC, L.L.C., or Limited Liability Company, a principal office street address, an agent for service of process (a California resident or a registered 1505 corporate agent), a decision on whether the LLC is member-managed or manager-managed, and $70. Plan for the $20 Statement of Information within 90 days and the annual tax to the Franchise Tax Board.

  1. Step 1 of 8: Pick an available California LLC name

    The name must include "Limited Liability Company," "LLC," or "L.L.C." ("Limited" can be "Ltd." and "Company" can be "Co."). It can't include bank, trust, trustee, incorporated, inc., corporation, corp., or insurance terms, and it must be distinguishable from other LLCs on the Secretary of State's records. Search bizfile Online first. The Secretary of State only checks names against other LLCs, not trademarks or county fictitious business names. Reserving a name is optional: $10 for 60 days. Skip it unless you need to hold the name before you're ready to file.

  2. Step 2 of 8: Choose your agent for service of process

    California calls the registered agent an agent for service of process. It must be either an individual who lives in California or a corporation registered as a 1505 corporate agent. The LLC can't be its own agent, but you can be the agent if you live here. The agent's name and street address are public on bizfile. If you use a corporate agent, only its name goes on the filing, which keeps your address off the record.

    California agent for service of process rules and costs

  3. Step 3 of 8: Decide when to file, because the date sets your $800 bill

    Your LLC's first tax year starts the day the Secretary of State files your Articles and ends December 31, and California doesn't let original Articles of Organization take a delayed effective date. File in October and you owe the first-year tax by January 15, then the next year's $800 by April 15: two payments about three months apart. The first-year tax is $800, or $400 if that first taxable year begins between January 1, 2027 and December 31, 2029. If you're close to year-end and don't need liability protection yet, filing on or after January 1 means your first tax year is a full year. If you need the LLC now, file now and budget for both payments.

  4. Step 4 of 8: File Articles of Organization (Form LLC-1) on bizfile Online

    Create a bizfile Online account, choose Register a Business, then Articles of Organization - CA LLC. You enter the LLC name, the principal office street address and mailing address, the agent for service of process, and whether the LLC is managed by its members, one manager, or more than one manager. The fee is $70. You can also mail Form LLC-1 for the same $70, or drop it off in Sacramento for an extra $15. Don't upload an operating agreement; the Secretary of State doesn't file them. Most first-time founders don't need to expedite. If a deadline depends on it, 24-hour service costs $350 and same-day costs $750.

  5. Step 5 of 8: Get a free EIN, write an operating agreement, and open a bank account

    Once the LLC is filed, get an EIN directly from IRS.gov. It's free and usually issued immediately online. The Secretary of State says California LLCs are required to have an operating agreement. State law lets it be oral or implied, but write it down. It's the document a bank asks for, and it records who owns the LLC and how decisions get made. Keep it at the LLC's office with your other records; you don't file it. Then open a business bank account so the LLC's money stays separate from yours.

  6. Step 6 of 8: File the $20 Statement of Information within 90 days

    Every California LLC must file a Statement of Information (Form LLC-12) within 90 days after its Articles are filed, then every two years during a six-month window that ends with the month you formed. It costs $20 and lists your addresses, agent, managers or members, and type of business, plus a question about unpaid Labor Code judgments. Since August 1, 2026, filing online requires User Access to your entity on bizfile, so set that up when you form. If nothing has changed at renewal time, you can file a Statement of No Change for the same $20.

  7. Step 7 of 8: Handle local licenses, a seller's permit, and any DBA

    California has no single statewide business license that covers everyone. Most cities, and counties for unincorporated areas, require their own business license or business tax registration, with fees and home-business rules that vary. If you sell tangible goods at retail, get a free seller's permit from the CDTFA. If you'll operate under a name other than the LLC's exact legal name, file a fictitious business name statement with your county. State law requires you to publish that statement in a local newspaper within 45 days. The LLC itself has no publication requirement.

  8. Step 8 of 8: Pay the annual tax to the Franchise Tax Board and file Form 568

    Pay the first annual tax by the 15th day of the 4th month after your filing date. Form on June 18 and it's due September 15. Pay with Form FTB 3522 by mail, or online through Web Pay without the voucher. For a calendar-year LLC, every later payment is due April 15. The LLC also files Form 568 every year, including single-member LLCs. If total California income reaches $250,000, estimate and pay the LLC fee with Form FTB 3536 by the 15th day of the 6th month. Late payment adds a 5% penalty plus 0.5% a month, and an LLC that stays unpaid can be suspended.

How much a California LLC costs

What you'll pay the state if you file it yourself and serve as your own agent for service of process. The cost page has every fee, the optional add-ons, and when each payment is due.

To form
$70
Year one total
$490
$70 + $20 + $400 first-year tax (2027-2029); $890 if you form in 2026
Every year after
$800/yr
Annual tax, plus the $20 Statement of Information every 2 years
Full California LLC cost breakdown

The $800 franchise tax: when it's due and how to avoid paying it twice in year one

California's LLC annual tax, which most people call the $800 franchise tax, is owed by every LLC organized or registered in California, every year, even with zero income. The first payment is due by the 15th day of the 4th month after you file. For a calendar-year LLC, every later payment is due April 15. Form late in the year and those two due dates land only a few months apart.

Who owes it
Every LLC whose Articles were accepted or that registered with the Secretary of State, plus any LLC doing business in California. It stays due each year, active or not, until you file a cancellation with the Secretary of State. Single-member LLCs owe it too.
First payment
Due by the 15th day of the 4th month after the Secretary of State files your Articles. The FTB's example: form on June 18 and the first payment is due September 15. If the due date falls on a weekend or holiday, it moves to the next business day.
Every year after
Due the 15th day of the 4th month of each tax year: April 15 for a calendar-year LLC. Pay online with Web Pay or mail Form FTB 3522.
The year-end trap
The first tax year runs from your filing date to December 31, however short. File on November 10 and the first-year tax is due February 15, then the next year's $800 is due April 15. That is two full payments in about two months.
$400 first year (2027-2029)
For taxable years beginning January 1, 2027, through December 31, 2029, the annual tax is $400 instead of $800 for an LLC's first taxable year only. Existing LLCs and every later year stay at $800. Recheck the FTB before filing in 2030 or later; the reduction ends after 2029 unless the law is extended.
The 2021-2023 exemption
LLCs formed from 2021 through 2023 paid nothing for their first year. That exemption has expired. Ignore guides that still say your first year is free.
The 15-day rule
State law exempts a tax year that is 15 days or shorter if the LLC did no business in California during it. A December 17-31 filing can qualify. Whether the following year then counts as your "first" year for the $400 rate is not addressed in FTB guidance, so filing in January is the cleaner choice.
Changed your mind?
If you cancel within 12 months of forming using the Short Form Cancellation (LLC-4/8), the FTB says the LLC isn't subject to the $800 for its first tax year.
If you pay late
The FTB adds a 5% late payment penalty plus 0.5% of the unpaid tax per month, and interest. Unpaid taxes can lead to the LLC being suspended.

If you're a freelance designer in Los Angeles deciding in October whether to form now or on January 1, run the numbers. Filing in October buys a first tax year of about three months for a full first-year tax, then the next year's $800 comes due in April. Filing on January 1 makes your first tax year a full year, so you pay one fewer annual tax over the life of the LLC. The cost of waiting is three months without the LLC's liability protection. For most people billing from a laptop, that's an easy trade. If you have a lease, employees, or a client contract that requires an LLC, file now.

Whatever date you pick, put the first due date on your calendar the day the filing is approved. Formation packages charge for the $70 filing; the annual tax is a separate payment you make to the FTB yourself.

Estimate your California self-employment tax

California Statement of Information: the $20 filing every two years

The Statement of Information is California's version of an annual report, filed with the Secretary of State and separate from the FTB annual tax. It costs $20, is due within 90 days of forming, and then every two years. It's a short online form you can file yourself on bizfile Online.

First filing
Within 90 days after the Secretary of State files your Articles of Organization. $20.
After that
Every two years, during a six-month window that ends on the last day of your formation month. Form in March and the window runs October 1 through March 31 every other year.
What it asks
Principal office and mailing addresses, agent for service of process, the names and addresses of managers (or members, if there are no managers), principal business activity, and whether any manager or member has an unpaid Labor Code judgment.
Nothing changed?
File a Statement of No Change instead. It costs the same $20.
Reminders
The Secretary of State sends a notice about three months before the window closes. Not receiving it doesn't excuse a late filing.
If you miss it
The Secretary of State sends a delinquency notice. If you still have not filed 60 days later, a $250 penalty applies, and the FTB collects it. Only the Secretary of State can waive it.
Online access
Since August 1, 2026, filing a Statement of Information online requires User Access to your entity on bizfile Online. Set it up right after formation so you aren't locked out at the deadline.

File the first one as soon as your Articles are approved, not on day 89. Changing your agent or the agent's address also requires a new Statement of Information.

Expect official-looking letters from private companies asking you to pay them to file it. The Secretary of State has warned about mailers demanding $495 or other amounts. The state fee is $20, paid on bizfile Online.

Why a Wyoming, Delaware, or Nevada LLC doesn't save a California resident the $800

California's $800 is owed by any LLC doing business in California, not only LLCs formed here. If you live in California and run the business from here, an out-of-state LLC has to register in California as a foreign LLC and pay the same annual tax, on top of its home state's fees.

Doing business
The FTB counts an LLC as doing business in California if it engages in any transaction for financial gain in California, is commercially domiciled here, or exceeds the sales, property, or payroll thresholds. A business run by a California resident from California meets the first test.
Foreign registration
An out-of-state LLC registers with the Secretary of State as a foreign LLC for $70, files the same $20 Statement of Information, and needs a California agent for service of process.
What you pay instead
A Wyoming LLC run from California costs Wyoming's $100 filing and $60+ a year, a Wyoming registered agent, California's $70 registration, and the $800 annual tax. A Delaware LLC adds $400 a year. You pay more for the same result.
Privacy
A corporate agent for service of process keeps your home address off California's records. You don't need a second state for that.

Form out of state only if you'll actually live and operate there. For a California resident, a California LLC filed yourself for $70 is the cheapest correct option.

See how states compare on cost

California tax and compliance notes

This is where California gets less simple than the filing itself. The state-specific issues that generic LLC guides usually skip.

Every LLC organized in California, registered with the Secretary of State, or doing business here owes the Franchise Tax Board an $800 annual tax (Form FTB 3522) every year until it is canceled. It is owed even when the LLC has no income or does no business. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State; after that it is due on the 15th day of the 4th month of each tax year, which is April 15 for a calendar-year LLC.

The first-year exemption from 2021 to 2023 is over. For taxable years beginning January 1, 2027, through December 31, 2029, California reduces the annual tax from $800 to $400 for an LLC's first taxable year. Existing LLCs, and every year after the first, stay at $800.

An LLC fee applies on top of the $800 once total California income reaches $250,000: $900 from $250,000, $2,500 from $500,000, $6,000 from $1 million, and $11,790 from $5 million. You estimate and pay it with Form FTB 3536 by the 15th day of the 6th month of the tax year. Underpaying the estimate adds a 10% penalty.

A default single-member LLC's profit is taxed on your personal California return. For 2025, the latest schedule the FTB has published, rates run from 1% to 12.3%, plus a 1% Behavioral Health Services Tax on taxable income over $1 million. Single filers reach the 9.3% bracket at $72,724 of taxable income. The LLC also files Form 568 every year.

Domestic California LLCs don't file FinCEN BOI reports. FinCEN made the exemption for U.S. companies permanent in a final rule effective August 14, 2026. If you sell tangible goods at retail, register for a free seller's permit with the CDTFA; forming the LLC doesn't create one.

California vs other LLC states

The simple comparison most founders actually want. Watch the ongoing state cost column. That's where states with cheap filing fees can still get expensive.

State Annual report Upfront cost Ongoing state cost
California This page
$20 Statement of Information every 2 years $70 $800/yr annual tax + $20 every 2 years
Oregon
$100/yr, due on the anniversary date $100 $100/yr
Nevada
$150 annual list + $200 state business license ~$425 $350/yr
Arizona
No annual report for LLCs $50 mail / $85 online + publication notice $0 state annual fee
Wyoming
$60 minimum, due 1st day of anniversary month $100 $60+/yr
Delaware
No annual report; $400 annual LLC tax due June 1 $110 $400/yr

California LLC pros and cons

Quick tradeoffs. Where California helps, where it adds friction, and what to watch before you file.

What works

  • The filing fee is only $70, and there is no publication requirement for the LLC.
  • You can file and maintain the LLC yourself on bizfile Online; the Statement of Information is $20 every two years.
  • The first-year annual tax drops to $400 for LLCs whose first tax year begins in 2027 through 2029.
  • You can be your own agent for service of process for free if you live in California.

Watch out for

  • The $800 annual tax is owed every year, even with no income, until you formally cancel.
  • Filing late in the year can mean two $800 payments within a few months.
  • Total California income of $250,000 or more adds an LLC fee of $900 to $11,790 a year, measured before expenses.
  • There are two agencies to track: the Secretary of State for the Statement of Information and the FTB for the tax and Form 568.
  • Forming in another state doesn't avoid any of this if you live and work in California.

Other state guides

If California isn't the right fit, these guides cover the other states most first-time founders compare it against.

Growing past a basic LLC?

Check the S-corp math after your California LLC is profitable.

Once net income is consistently around $60K or more, S-corp treatment may reduce self-employment tax. The savings only count after payroll, accounting, and state costs.

Run S-corp calculator

FAQ

The questions people ask right before they decide to file on their own or pay a service.

How much does it cost to start an LLC in California?

The filing is $70, the first Statement of Information is $20, and the first annual tax to the Franchise Tax Board is normally $800. That puts the real first-year minimum at $890. For an LLC whose first taxable year begins between January 1, 2027 and December 31, 2029, the first-year tax is $400, so the minimum is $490. After that, expect $800 a year plus $20 every two years. A commercial agent for service of process adds about $50 to $200 a year.

What is the California LLC filing fee?

The Articles of Organization cost $70, online through bizfile Online or by mail. In-person drop-off in Sacramento adds $15. Expedited service is extra: $350 for 24-hour service or $750 for same day.

Do I have to pay the $800 California LLC tax in the first year?

Yes. The first-year exemption only covered LLCs formed in 2021 through 2023. The first payment is due by the 15th day of the 4th month after filing. It is $800, or $400 if the LLC's first taxable year begins between January 1, 2027 and December 31, 2029. After the first year, it is $800 every year.

When is the $800 California LLC tax due?

The first payment is due by the 15th day of the 4th month after the Secretary of State files your Articles. Form on June 18, pay by September 15. After that, it is due on the 15th day of the 4th month of each tax year, which is April 15 for a calendar-year LLC. Pay online with FTB Web Pay or by mail with Form FTB 3522.

Do I owe the $800 if my LLC made no money?

Yes. The annual tax is owed for every year the LLC exists on the Secretary of State's records, with or without income or activity, until you cancel it. The one first-year escape is the Short Form Cancellation: cancel within 12 months of forming and the FTB says the LLC isn't subject to the first year's tax.

What is the California LLC fee for $250,000 or more in income?

On top of the $800 tax, an LLC with total California income of $250,000 or more pays an LLC fee: $900 from $250,000, $2,500 from $500,000, $6,000 from $1 million, and $11,790 from $5 million. "Total income" is roughly gross receipts, not profit. Estimate and pay it with Form FTB 3536 by the 15th day of the 6th month of the tax year, or face a 10% underpayment penalty.

How long does it take to form an LLC in California?

The Secretary of State doesn't publish a standard time. It posts the dates it is currently reviewing. In early October 2026, online LLC formations were being reviewed about two business days after they came in, and mail ran a few days behind that. Year-end is slower. If you need a guaranteed time, 24-hour service costs $350 and same-day costs $750.

Where do I file an LLC in California?

With the California Secretary of State, online at bizfileonline.sos.ca.gov. Taxes are separate: the Franchise Tax Board collects the $800 annual tax, and the CDTFA handles seller's permits.

What is the California LLC formation document called?

Articles of Organization, Form LLC-1. Online, choose Articles of Organization - CA LLC on bizfile Online. An out-of-state LLC registering in California files an Application to Register (Form LLC-5) instead, also $70.

Does California require a registered agent?

Yes. California calls it an agent for service of process. It must be an individual who lives in California or a corporation registered as a 1505 corporate agent. The LLC can't serve as its own agent. The agent's name and address are public.

Can I be my own agent for service of process in California?

Yes, if you live in California. Your name and street address go on the public record, and you need to be reachable for court papers. If you work from home and don't want that address public, use a registered corporate agent; only the agent's name appears on your filing.

Does California require an operating agreement?

The Secretary of State says yes: a California LLC must have an operating agreement, kept at the LLC's office and not filed with the state. State law lets it be oral or implied, even for a single-member LLC. Write it down anyway, because banks ask for it and it is your proof of who owns and runs the LLC.

Does California have an annual report for LLCs?

Not under that name. California's version is the Statement of Information: $20, due within 90 days of forming and then every two years in the six-month window ending with your formation month. Missing it can lead to a $250 penalty. The $800 annual tax to the FTB is a separate obligation.

Does California require newspaper publication for an LLC?

No. Forming a California LLC has no publication requirement. Publication only comes up if the LLC operates under a name other than its legal name: a county fictitious business name statement must be published in a local newspaper within 45 days of filing.

Do I need a business license for my California LLC?

Usually, from your city, or your county if you're in an unincorporated area. Forming the LLC doesn't register it locally. If you sell tangible goods at retail, you also need a free seller's permit from the CDTFA, and licensed professions need a state professional license.

How is a California LLC taxed?

The LLC pays the $800 annual tax and, at $250,000+ of California income, the LLC fee. Profit passes through to your personal California return at progressive rates from 1% to 12.3% (2025 schedule), plus 1% on taxable income over $1 million. The LLC files Form 568 every year.

Should a California resident form an LLC in Wyoming, Delaware, or Nevada?

No. An LLC run by a California resident from California is doing business here, so it must register in California as a foreign LLC ($70) and still owes the $800 annual tax. You'd pay the other state's fees and registered agent on top. Form in California.

Can I form a California LLC if I live in another state?

Yes. Members and managers don't have to live in California. You'll need a California agent for service of process, which usually means a registered corporate agent. The $800 annual tax applies no matter where the owners live.

Do California LLCs need to file a BOI report?

No. FinCEN's final rule, effective August 14, 2026, permanently exempts U.S. companies, including California LLCs, from BOI reporting. The federal rule has changed before, so recheck FinCEN before relying on an older checklist.