Forming your LLC with the California Secretary of State (bizfile Online) does not license it to operate. In California, register for any state taxes that apply to your business and check with your city and county for local business licenses.
Get a Seller's Permit and Local Licenses
If you sell tangible goods, get a free seller's permit from the California Department of Tax and Fee Administration (CDTFA). Most cities and counties also require a local business license.
What's Different About California
- $800 minimum annual tax, owed every year the LLC exists, including the first year for LLCs formed in 2026.
- A $20 Statement of Information is due within 90 days of forming, then every two years.
- LLCs with California gross receipts of $250,000 or more also owe an additional LLC fee, starting at $900.
Licensed professions and regulated activities (contractors, food, alcohol, transportation, health care) may need additional state board licenses. Verify your specific activities with the state and your city.
Ongoing California Requirements
- $800 minimum annual tax to the Franchise Tax Board every year.
- Statement of Information ($20) every two years.
- Form 568 LLC tax return each year, plus the gross-receipts LLC fee if receipts reach $250,000.
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Frequently Asked Questions
Is the $800 California LLC tax waived for the first year?
Not for new LLCs. The first-year exemption covered LLCs formed from 2021 through 2023. LLCs formed in 2026 owe the $800 tax for their first year.
Official Sources
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