How to Start an LLC in California

California LLCs file Articles of Organization and pay an annual franchise tax. Full step-by-step guide to forming an LLC in California.

To start an LLC in California, you file Articles of Organization with the California Secretary of State, pay a filing fee of approximately $70, and plan for the $800 minimum annual franchise tax that every California LLC owes. The state also requires a Statement of Information every two years, so the ongoing obligations are heavier than in most states.

Here is the direct answer: California LLC formation costs about $70 for the Articles of Organization filing fee, plus an $800 minimum annual franchise tax, and processing typically takes five to seven business days for online filings. Fees change frequently, so confirm the current amounts on the California Secretary of State website before you submit.

Choose a Name for Your California LLC

Your LLC name must include "Limited Liability Company," "LLC," or an approved abbreviation, and it must be distinguishable from other names on file. Search the California Secretary of State's business name database through bizfileOnline before you file. You can reserve a name for 60 days for a small fee if you are not ready to file yet. Avoid words that suggest a different business type, such as "bank" or "trust," unless you hold the appropriate license. If your first choice is taken, try a slight variation or add a geographic qualifier, as long as the result still reads as distinguishable from existing names.

Designate a California Registered Agent

Every California LLC must designate a registered agent with a physical street address in California. The agent accepts service of process and official mail on your behalf. You can act as your own agent, or use a commercial registered agent service. Because the agent's address is public, many owners choose a commercial service to keep their home address off the record. Learn more in our guide to what a registered agent does.

File Articles of Organization in California

File Form LLC-1, Articles of Organization, online through bizfileOnline or by mail. You will provide the LLC name, registered agent information, management structure, and the street address of the initial agent for service of process. Online filing is faster and gives you a confirmation number immediately. Mail filings take longer and require a cover letter with your contact information.

Understand the California Franchise Tax

California levies an $800 minimum annual franchise tax on every LLC, including in your first year of operation, even if the business has no income. The Franchise Tax Board may apply a credit for part of the first year depending on when you form, so check with the FTB for your situation. As of 2026, the $800 minimum remains in place, and it is separate from any income-based taxes your LLC may owe. The tax is due even in years when the LLC loses money, so factor it into your annual budget.

Post-Formation Steps: EIN, Operating Agreement, and More

After your LLC is approved, apply for an Employer Identification Number (EIN) from the IRS. It is free and takes about ten minutes online. You will need it to open a business bank account, hire employees, and file federal taxes. See our guide on how to get an EIN for your LLC.

Draft an operating agreement even though California does not require one, and file your first Statement of Information within 90 days of formation. Then register with the California Department of Tax and Fee Administration if you sell goods or services subject to sales tax, and open a dedicated business bank account.

Ongoing Requirements for California LLCs

California LLCs must file a Statement of Information every two years, with a fee of approximately $20, and pay the $800 minimum annual franchise tax each year. Missing either deadline triggers late fees and penalties. For a full comparison of what formation costs across states, see our guide to how much an LLC costs.

Frequently Asked Questions

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

Filing Articles of Organization costs approximately $70. On top of that, California levies an $800 minimum annual franchise tax on every LLC, including in your first year. A Statement of Information costs $20 and is due every two years. Fees change frequently, so confirm current amounts on the California Secretary of State and Franchise Tax Board websites.

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

Online filings through bizfileOnline are typically processed in five to seven business days. Mail filings can take several weeks. Expedited processing is available for an additional fee. Confirm current processing times on the California Secretary of State website before you file.

Does a California LLC have to pay the $800 franchise tax in its first year?

Yes. The $800 minimum annual franchise tax applies from your first taxable year, even if the LLC has no income. The Franchise Tax Board may apply a credit for part of the first year depending on when you form, so check with the FTB for your specific situation.

When is the Statement of Information due for a California LLC?

Your first Statement of Information is due within 90 days of filing Articles of Organization. After that, it is due every two years during the LLC's registration month. The filing fee is approximately $20, and you can file online through bizfileOnline.