California Business License and Tax Registration for LLCs

Forming an LLC and getting licensed are separate steps in California. State tax registration, local business licenses, and official California links.

Last reviewed September 24, 2026

Short Answer

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.

Official Government Resource
CDTFA Permits and Licenses

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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Important Information

This website provides general educational information and tools for business owners. It is not a law firm, accounting firm, tax adviser, financial adviser, or government agency.

Information can change, and requirements vary based on business activities and individual circumstances.

Verify filing requirements, fees, deadlines, licenses, permits, and tax obligations with the appropriate government agency or a qualified professional before acting.