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

The total first-year cost to start a California LLC is $890, broken down as follows: $70 for filing Articles of Organization with the California Secretary of State, $20 for the initial Statement of Information (due within 90 days of formation), and $800 for the mandatory annual franchise tax. California LLCs must pay this $800 franchise tax every year regardless of income, revenue, or activity level, even if your business generates no profit. Additional costs to budget for include a registered agent service, an EIN application (free through the IRS), and any required business licenses. Many founders also pay $100 to $300 for an attorney to draft an operating agreement. California ranks 49th of 50 states in total first-year LLC cost, sitting $648 above the national average primarily due to the mandatory franchise tax.

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

California doesn't commit to a turnaround. Instead the California Secretary of State publishes the dates it's currently working through, which moves week to week, so the only reliable answer is whatever that page says on the day you file. For reference, as of 2026-07-29 it reported: As of the Secretary of State's July 29, 2026 processing-dates page, LLC Formations/Registrations submitted online were being reviewed as of 07/28/2026 (about one business day), in person as of 07/27/2026, and by mail as of 07/24/2026 (about three business days). That figure will have moved since. Because of that, don't plan a launch date around a number you read anywhere else. If your timing is fixed, the published expedite tiers are: $350 for 24-Hour Filing Service (Class C, online or Sacramento drop-off), $500 for 4-Hour Filing Service (Class A, Sacramento drop-off, requires preclearance), and $750 for Same Day Filing Service (Class B, received by 9:30am).

Do I need a registered agent in California?

Yes, all California LLCs are legally required to have a registered agent, called an agent for service of process in California law, with a physical California street address. P.O. boxes aren't accepted. This agent receives service of process for lawsuits, legal notices, and official state correspondence on behalf of your LLC during normal business hours. You've three options: act as your own agent using a California address, designate another individual with a California address, or hire a professional registered agent service. Professional services charge a yearly fee and offer added privacy, since their address rather than yours appears in public state records. They also accept legal papers during business hours, which helps if you travel frequently, work irregular hours, or prefer not to have your home address listed in public California Secretary of State business filings.

What is California's franchise tax for LLCs?

California charges all LLCs a minimum $800 annual franchise tax administered by the California Franchise Tax Board. The first payment is due by the 15th day of the 4th month after your LLC's formation date, for example, forming in January means payment is due by April 15th. Subsequent payments are due annually by April 15th. This $800 minimum applies regardless of whether your LLC earns any revenue or operates at a loss. Higher-earning LLCs owe additional amounts: gross receipts of $250,000 to $499,999 add a $900 fee; $500,000 to $999,999 adds $2,500; $1 million, $4,999,999 adds $6,000; and over $5 million adds $11,790. LLCs formed in the last 15 days of a taxable year may defer the initial $800 payment to the following year. Pay via FTB Web Pay to avoid interest and late penalties. The franchise tax is separate from California personal income tax on LLC earnings.

Can I form an LLC in California if I live in another state?

Yes, non-residents and people living in other states can form a California LLC. You're not required to be a California resident to serve as a member or manager. However, you must designate a registered agent with a physical California street address to receive legal documents and official state correspondence. Keep in mind that forming a California LLC subjects you to the mandatory $800 annual franchise tax regardless of where you personally live or where your business primarily operates. If you form a California LLC but conduct most of your actual business in another state, you may also need to register as a foreign LLC in that home state, potentially paying fees in two states. Many non-residents form California LLCs specifically to do business with California clients, invest in California real estate, or meet contractual requirements. Consult a tax advisor before choosing California as your formation state to understand the full cost implications.

Do California LLCs need to file annual reports?

California LLCs are required to file a Statement of Information with the Secretary of State, though unlike most states, this isn't an annual filing. The initial Statement of Information is due within 90 days of the date your Articles of Organization are approved. After that, subsequent statements are due biennially (every two years) during the anniversary month of your formation. The filing fee is $20 per Statement of Information, submitted online at bizfile.sos.ca.gov or by mail. The statement must include your LLC's current address, registered agent information, and the names and addresses of managers or members. Failure to file on time triggers a $250 late penalty, and continued non-compliance can cause the Secretary of State to suspend your LLC. A suspended LLC can't do business in California, can't sue or be sued in California courts, and can't obtain California tax clearances. Maintain a calendar reminder to file on time.

How to Start an LLC in California: Complete 2026 Guide

Form your California LLC with the right paperwork. Understand all costs upfront, including the mandatory $800 annual franchise tax.

By Edmond Hui · Last updated: October 2026

Filing an LLC in California costs $70 upfront and has a biennial report due anniversary month ($20). California processes filings from a live queue with no fixed turnaround. See breakdown below.

California publishes no fixed LLC processing time. It posts the dates it's currently working through, so the figure moves week to week

That rolling queue is the California Secretary of State's own measure, and it's the only honest answer: any specific day count copied out of it's stale within a week. Check the agency's processing-dates page on the day you file rather than trusting a number quoted elsewhere. Paid options are published and fixed: $350 for 24-Hour Filing Service (Class C, online or Sacramento drop-off), $500 for 4-Hour Filing Service (Class A, Sacramento drop-off, requires preclearance), and $750 for Same Day Filing Service (Class B, received by 9:30am).

Source: MyStateLLC 50-state primary-source processing verification, July 2026

Read this guide for another state:

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Form your LLC with Northwest ($39 + state fee)Includes a year of registered agent service. After year one, registered agent service is $125/yr. That enrolls you by default in biennial report filing at $100 plus state fees per report, charged automatically to your saved payment method and cancellable any time.

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Quick Facts

State filing fee	$70
Processing time	Live queue, no fixed turnaround
Annual report due	Anniversary month
Annual report fee	$20
State income tax	Yes. Plus $800/year minimum franchise tax for all LLCs

Source: California Secretary of State (verified July 2026)

Step diagram for forming an LLC in California, showing the 7 required steps, $70 state filing fee, $20 annual report. — The 7 steps to form an LLC in California, with the state's own filing fee and annual report cost. Source: California Secretary of State, verified July 2026.

How to Form an LLC: Step-by-Step

1
Choose Your LLC Name
Your California LLC name must include 'LLC' or 'Limited Liability Company' and be distinguishable from existing business names. Check availability using the California Secretary of State's business search tool. Reserve your name for 60 days if needed for $10.
How to search California's business entity records →
Pro tip: California prohibits certain words like 'bank' or 'insurance' without special licensing. Avoid generic terms that might conflict with trademark rights.
2
Designate a Registered Agent
California requires a registered agent with a California street address to receive legal documents. You can serve as your own agent if you've a California address, or hire a professional service. The agent must be available during business hours.
California registered agent rules, costs and options →
Pro tip: A professional registered agent service puts its address, not yours, on the registered agent line of the public filing, and accepts legal papers during business hours.
3
File Articles of Organization
Submit Form LLC-1 to the California Secretary of State with the $70 filing fee. File online at sos.ca.gov or by mail.
What You File in California
In California, the formation document is the Articles of Organization, filed with the California Secretary of State, Business Programs Division. The state filing fee is $70. California lets you fill in and file the Articles of Organization online. The state's published processing time: Live queue, no fixed turnaround. The form itself requires the LLC's name, the registered agent's name, the principal office address, the organizer's name and a business purpose. California also requires, with the Articles of Organization or after it: Initial Statement of Information; First-year annual LLC tax payment to the Franchise Tax Board (Form FTB 3522). Every line of the Articles of Organization, field by field →
Processing Times
- Online: Not fixed, the California Secretary of State posts the dates it's currently processing rather than a turnaround, and that moves week to week
- Mail: Not published, California Secretary of State states no standard turnaround for mailed filings, and every state that comments says mail is slower than online
- Expedited: $350 for 24-Hour Filing Service (Class C, online or Sacramento drop-off), $500 for 4-Hour Filing Service (Class A, Sacramento drop-off, requires preclearance), and $750 for Same Day Filing Service (Class B, received by 9:30am)
4
Create an Operating Agreement
This page has not confirmed whether California law requires an LLC to have an operating agreement. A written agreement signed by every member is worth having either way: it records who owns what share, who makes decisions and how profits are divided. This document outlines ownership percentages, management structure, and profit distribution rules. Keep it with your business records.
California LLC operating agreement: what to include →
Pro tip: Even single-member LLCs benefit from operating agreements to demonstrate separation between personal and business affairs to courts and creditors.
5
Obtain an EIN from the IRS
Apply for an Employer Identification Number (EIN) directly through the IRS website for free. Most banks ask for this federal tax ID to open a business bank account, and the IRS requires one if the LLC hires employees, owes certain employment or excise taxes, or is taxed as a partnership or corporation. Single-member LLCs can also use the owner's Social Security Number.
How to get your LLC's EIN from the IRS, free →
6
Open a Business Bank Account
Separate your personal and business finances by opening a dedicated LLC bank account. Bring your Articles of Organization, EIN confirmation, and operating agreement to the bank. This separation matters for maintaining your liability protection.
Business bank accounts for California LLCs →
7
Obtain Required Business Licenses
California LLCs need various licenses depending on their business type and location. Check requirements at the state, county, and city levels. Common needs include seller's permits for retail, professional licenses for services, and local business licenses for operation permits.
Does your California LLC need a business license? →

Watch: How to Start an LLC in California (2026): Step-by-Step Guide

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It reports what each Secretary of State publishes for forming an LLC, with the sources this page cites. It cannot tell you what your own filing needs: fees and forms change between our reviews, several occupations cannot use an ordinary LLC at all and must use a professional entity, and your city or county may require a registration of its own. Confirm the current fee and form with the filing office named on this page before you send anything.

Frequently Asked Questions

: The total first-year cost to start a California LLC is $890, broken down as follows: $70 for filing Articles of Organization with the California Secretary of State, $20 for the initial Statement of Information (due within 90 days of formation), and $800 for the mandatory annual franchise tax. California LLCs must pay this $800 franchise tax every year regardless of income, revenue, or activity level, even if your business generates no profit. Additional costs to budget for include a registered agent service, an EIN application (free through the IRS), and any required business licenses. Many founders also pay $100 to $300 for an attorney to draft an operating agreement. California ranks 49th of 50 states in total first-year LLC cost, sitting $648 above the national average primarily due to the mandatory franchise tax.
: California doesn't commit to a turnaround. Instead the California Secretary of State publishes the dates it's currently working through, which moves week to week, so the only reliable answer is whatever that page says on the day you file. For reference, as of 2026-07-29 it reported: As of the Secretary of State's July 29, 2026 processing-dates page, LLC Formations/Registrations submitted online were being reviewed as of 07/28/2026 (about one business day), in person as of 07/27/2026, and by mail as of 07/24/2026 (about three business days). That figure will have moved since. Because of that, don't plan a launch date around a number you read anywhere else. If your timing is fixed, the published expedite tiers are: $350 for 24-Hour Filing Service (Class C, online or Sacramento drop-off), $500 for 4-Hour Filing Service (Class A, Sacramento drop-off, requires preclearance), and $750 for Same Day Filing Service (Class B, received by 9:30am).
: Yes, all California LLCs are legally required to have a registered agent, called an agent for service of process in California law, with a physical California street address. P.O. boxes aren't accepted. This agent receives service of process for lawsuits, legal notices, and official state correspondence on behalf of your LLC during normal business hours. You've three options: act as your own agent using a California address, designate another individual with a California address, or hire a professional registered agent service. Professional services charge a yearly fee and offer added privacy, since their address rather than yours appears in public state records. They also accept legal papers during business hours, which helps if you travel frequently, work irregular hours, or prefer not to have your home address listed in public California Secretary of State business filings.
: California charges all LLCs a minimum $800 annual franchise tax administered by the California Franchise Tax Board. The first payment is due by the 15th day of the 4th month after your LLC's formation date, for example, forming in January means payment is due by April 15th. Subsequent payments are due annually by April 15th. This $800 minimum applies regardless of whether your LLC earns any revenue or operates at a loss. Higher-earning LLCs owe additional amounts: gross receipts of $250,000 to $499,999 add a $900 fee; $500,000 to $999,999 adds $2,500; $1 million, $4,999,999 adds $6,000; and over $5 million adds $11,790. LLCs formed in the last 15 days of a taxable year may defer the initial $800 payment to the following year. Pay via FTB Web Pay to avoid interest and late penalties. The franchise tax is separate from California personal income tax on LLC earnings.
: Yes, non-residents and people living in other states can form a California LLC. You're not required to be a California resident to serve as a member or manager. However, you must designate a registered agent with a physical California street address to receive legal documents and official state correspondence. Keep in mind that forming a California LLC subjects you to the mandatory $800 annual franchise tax regardless of where you personally live or where your business primarily operates. If you form a California LLC but conduct most of your actual business in another state, you may also need to register as a foreign LLC in that home state, potentially paying fees in two states. Many non-residents form California LLCs specifically to do business with California clients, invest in California real estate, or meet contractual requirements. Consult a tax advisor before choosing California as your formation state to understand the full cost implications.
: California LLCs are required to file a Statement of Information with the Secretary of State, though unlike most states, this isn't an annual filing. The initial Statement of Information is due within 90 days of the date your Articles of Organization are approved. After that, subsequent statements are due biennially (every two years) during the anniversary month of your formation. The filing fee is $20 per Statement of Information, submitted online at bizfile.sos.ca.gov or by mail. The statement must include your LLC's current address, registered agent information, and the names and addresses of managers or members. Failure to file on time triggers a $250 late penalty, and continued non-compliance can cause the Secretary of State to suspend your LLC. A suspended LLC can't do business in California, can't sue or be sued in California courts, and can't obtain California tax clearances. Maintain a calendar reminder to file on time.

Sources

6 documents

Each entry below is a document recorded in our verified California sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.

sos.ca.gov/business-programs/business-entitiesCalifornia Secretary of State: business entity filings
sos.ca.gov/business-programs/business-entities/forms/limited-liability-companies-california-domesticCalifornia LLC filing fees
leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP&sectionNum=17702.09California statute: Statement of Information
sos.ca.gov/business-programs/business-entities/statementsCalifornia Secretary of State: file the Statement of Information
leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC&sectionNum=17941California statute: First-year Annual LLC Tax
ftb.ca.gov/file/business/types/limited-liability-company/index.htmlCalifornia Franchise Tax Board: file the First-year Annual LLC Tax

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Ready to Form Your California LLC?

$39 with Northwest, plus your $70 state fee. Northwest's $39 includes a year of registered agent service.

Affiliate disclosure: We may earn a commission at no extra cost to you.

Prefer to file directly? File yourself at the Secretary of State → ($70 state fee, no service fee)

Not sure which service is right? Compare formation services →

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

How we check facts

Quick Facts

How to Form an LLC: Step-by-Step

Choose Your LLC Name

Designate a Registered Agent

File Articles of Organization

What You File in California

Processing Times

Create an Operating Agreement

Obtain an EIN from the IRS

Open a Business Bank Account

Obtain Required Business Licenses