How to Form an LLC in California
California is one of the most expensive states in which to keep an LLC, and its costs arrive fast: an $800 annual tax and a Statement of Information both come due within your first few months. The filing itself is simple and cheap. Here is the whole picture, from the state's own sources.
California at a glance
Filing fee: $70 for the Articles of Organization (Form LLC-1), filed with the California Secretary of State. Recurring: An $800 annual LLC tax every year, plus a $20 Statement of Information every two years. Registered agent: required, with a physical address in California. Every figure on this page was checked against the Secretary of State's and Franchise Tax Board's official sites on November 7, 2026.
On this page
The California filing steps
Check your name on the state's own search
Search the name in the Secretary of State's business records through bizfile Online before you file. Your name must be distinguishable from existing California entities and must carry an LLC designator such as "LLC" or "Limited Liability Company." The state's search is the one that decides, and it is free.
Choose your registered agent
California calls this role the agent for service of process. It must be an individual who lives in California, or a registered corporate agent (often called a 1505 agent, after the Corporations Code section). A business entity cannot be its own agent. The agent's name and California address go on your Statement of Information, which is public record, one reason many home-based founders hire a commercial agent instead of listing a home address.
File the Articles of Organization with the Secretary of State
File online through bizfile Online, the Secretary of State's portal, for the fastest handling. The state cites about five days or less for online submissions. The fee is $70. Paper filers use Form LLC-1 by mail or at the Sacramento office. Either way, the approval document is what your bank will ask for, so save the stamped copy.
Get an EIN from the IRS
Free, online, and takes minutes once your California filing is approved. Never pay a service for this. See EIN for an LLC for the walkthrough and the one IRS rule (a real person as responsible party) that surprises people.
Write your operating agreement
California practice expects an operating agreement for every LLC, and banks and lenders ask for it even though the state never collects it at filing. For a single-member LLC it is a short document. Write it, sign it, keep it with your formation records.
Open the business bank account and handle licenses
Bring your approved formation document and EIN letter. Then check your city and county for a general business license and your industry for state permits. California issues no statewide general business license. Most cities and counties require a local business license (often called a business tax certificate), and regulated trades have their own state boards. Check your city's finance or business license office for the address where you will actually operate.
Filing details that trip people up
- The Statement of Information clock starts at filing. Your first Statement of Information (Form LLC-12, $20) is due within 90 days of registration, not at the end of the year. New founders miss this more than any other California deadline.
- The $800 tax clock also starts at filing. Your first $800 annual tax payment is due by the 15th day of the fourth month after you file with the Secretary of State, paid with voucher FTB 3522. The old first-year exemption applied only to tax years beginning before January 1, 2024, so it does not help you now.
- No publication filing. The Secretary of State's official LLC forms and fees list contains no publication filing or publication fee for LLCs. If a service tries to sell you a California LLC publication package, that list is your answer.
- Foreign LLCs pay the same $70. Registering an out-of-state LLC to do business in California (Form LLC-5) costs $70, and California's taxes and Statement of Information then apply to it as well. Forming in Nevada or Wyoming does not dodge California costs if the business actually operates here.
After your California LLC is approved
Two clocks are already running. File the Statement of Information within 90 days ($20) and pay the first $800 annual tax by the 15th day of the fourth month after filing. If the LLC will earn $250,000 or more of California income, an additional income-based LLC fee exists, estimated and paid by the 15th day of the sixth month (Form FTB 3536). Open the business bank account with your approved Articles and EIN letter, and get the local business license for your city.
The full recurring picture for California, with fees and due dates, is on the California annual report and compliance page, and the money view is on the California LLC cost page.
California LLC questions
What does a California LLC really cost in year one?
$890 in state charges: $70 to file, $20 for the Statement of Information, and the $800 annual tax. That is before any registered agent service or local license. See the full cost page.
Does California still waive the $800 in year one?
No. The waiver covered tax years beginning on or after January 1, 2021 and before January 1, 2024. The Franchise Tax Board's current guidance applies the $800 to LLCs organized or doing business in California now.
Do I owe the $800 if my LLC does nothing?
Yes, according to the FTB, the tax is due every year the LLC exists, even if it is not conducting business, until the LLC is formally cancelled. An idle California LLC is an $800-a-year idle LLC.
Does a California LLC file a BOI report with FinCEN?
No. US-formed companies are exempt under the August 14, 2026 final rule. Details and the pending lawsuit are on our BOI tracker.
General Information Only
LLCForming publishes general information about forming and running an LLC. It is not legal, tax, or accounting advice, and it does not create an attorney or advisor relationship. Rules vary by state and by your situation. For a decision that matters, talk to a licensed attorney or tax professional in your state.