To start an LLC in California, file the Articles of Organization (Form LLC-1) with the California Secretary of State. The state filing fee is currently $70. Filing in person adds a $15 handling fee.
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.
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Choose a Business Name
The name must end with "Limited Liability Company," "LLC," or "L.L.C." and be distinguishable from names already registered with the Secretary of State.
Search California Business Records
Use bizfile Online to search existing entity names before you file.
Choose an Agent for Service of Process
California's term for a registered agent. It can be an individual with a California address or a registered corporate agent.
File Articles of Organization (LLC-1)
File online through bizfile Online for $70. Online filing is the fastest option.
Prefer Help Filing Your LLC?
If you'd rather have a service help prepare and file your LLC formation documents, you can review the LLC formation services from LegalZoom or Bizee. A formation service is optional — you can always file directly with the state yourself.
Affiliate disclosure: We may earn a commission if you purchase through these links, at no additional cost to you.
File the Initial Statement of Information
Within 90 days of filing, submit a Statement of Information (Form LLC-12) for $20. After that, it's due every two years. A late filing can bring a $250 penalty.
Create an Operating Agreement
California does not require you to file one, but every LLC should keep a written operating agreement with its records.
Get an EIN
Apply for a free EIN directly from the IRS.
Pay the $800 Annual Tax
The first payment is due by the 15th day of the 4th month after the LLC is formed (use FTB Form 3522). After that it's due every year by the 15th day of the 4th month of your tax year (April 15 for calendar-year LLCs).
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.
How Much Does It Cost to Start an LLC in California?
| Fee | Amount | When |
|---|---|---|
| Articles of Organization (LLC-1) | $70 | One time |
| Statement of Information (LLC-12) | $20 | Within 90 days, then every 2 years |
| Minimum annual LLC tax (Franchise Tax Board) | $800 | Every year, including year one |
| Additional LLC fee (gross receipts $250K+) | $900 – $11,790 | Only if receipts reach $250K |
| Seller's permit (CDTFA) | $0 | If selling goods |
| EIN from the IRS | $0 | One time |
Some third-party sites still claim the $800 first-year waiver applies in 2026. The Franchise Tax Board states the exemption covered only tax years beginning 2021–2023.
Fees and requirements can change. Verify current amounts with the appropriate government agency before filing. Optional services such as registered agents or formation companies are not included above.
Licenses and Permits by Business Type
What California requires beyond forming the LLC, depending on what your business does.
Construction / Trades
Contractor registration · Bonding · Insurance · Professional licenses
Food Business
Food permits · Local health department requirements · Facility permits
Transportation
Vehicle requirements · Commercial insurance · State / federal transportation requirements
Ecommerce
Sales tax requirements · Ecommerce platform · Payment processor · Shipping · Returns policy · Privacy policy
Consulting / Freelance
Client contracts · Professional insurance · Invoicing
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.
Federal note: since March 2025, LLCs formed in the United States are not required to file beneficial ownership (BOI) reports with FinCEN.
Common California LLC Mistakes
Assuming the first year is free. The first-year exemption only applied to LLCs formed in 2021–2023.
Missing the 90-day deadline for the initial Statement of Information.
Letting an unused LLC sit open. The $800 tax keeps accruing until the LLC is formally canceled.
Frequently Asked Questions
How much does it cost to start an LLC in California?
Plan for at least $890 in the first year: $70 to file, $20 for the Statement of Information, and the $800 minimum annual tax.
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.
When is the first $800 payment due?
By the 15th day of the 4th month after the LLC is formed. For example, an LLC formed in March owes its first payment by July 15.
Official Sources
Related LLC Guides
California LLC Cost
Every required government fee, plus what's optional.
Read the GuideWhat Is a Registered Agent?
What a registered agent does and who can serve as one.
Read the GuideHow to Get an EIN
Apply directly with the IRS — the application is free.
Read the GuideOperating Agreement Guide
What your agreement should cover, based on your ownership.
Read the GuideCalifornia Business License
Formation and licensing are separate — see what applies to you.
Read the GuideCalifornia LLC Annual Report
What to file each year, the fee, and the deadline.
Read the GuideWhat to Do After Forming Your LLC
The practical steps that come next.
Read the GuideStarting in Another State?
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