California LLC Quick Facts
$70
CA Secretary of State
Articles of Organization
$800 (see note below)
$20 (every 2 years)
Yes (personal)
Fees and requirements shown are based on our most recent review. Always verify current information at the California Secretary of State website.
Why Form an LLC in California?
California has the largest GDP of any U.S. state and is home to some of the world's most innovative companies. If you live in California or do business there, forming a California LLC is typically required regardless of where your LLC was originally created.
- Massive market access: Nearly 40 million residents and a diverse economy spanning technology, entertainment, agriculture, and more.
- Low filing fee: At $70, California's LLC filing fee is among the lowest in the country.
- Strong consumer base: California's large, affluent population provides enormous market potential.
- Innovation ecosystem: Access to world-class talent, venture capital, and business networks.
However, California also imposes an $800 annual franchise tax on LLCs, which is an important cost to factor into your planning.
Important: California's $800 Annual Franchise Tax
California imposes an $800 annual minimum franchise tax on most LLCs. This tax is due by the 15th day of the 4th month after your LLC's tax year begins (typically April 15 for calendar-year LLCs) and then annually each year your LLC exists.
First-year exemption note: California previously offered a first-year exemption from the $800 minimum franchise tax for LLCs formed between January 1, 2021, and December 31, 2023. As of our last review, this exemption has expired. However, tax law changes frequently in California. We strongly recommend checking with the California Franchise Tax Board (FTB) for the most current rules regarding any first-year exemption or fee waiver.
LLCs with gross revenue above $250,000 may owe an additional LLC fee on top of the $800 minimum. This fee ranges from $900 to $11,790 depending on your income level.
Steps to Form Your California LLC
Choose a Name for Your California LLC
Your LLC name must not be the same as, or deceptively similar to, any existing business entity registered in California. It must end with "Limited Liability Company," "LLC," or "L.L.C."
Search for available names using the California Secretary of State's business search tool at bizfileonline.sos.ca.gov. You can reserve a name for 60 days by filing a Name Reservation Request (Form LLC-1) with a $10 fee.
Appoint an Agent for Service of Process
California requires every LLC to designate an agent for service of process. This person or company must have a physical street address in California and be available during normal business hours to receive legal documents.
You can serve as your own agent, but many business owners use a professional service for privacy and reliability. Our recommended LLC services include registered agent service.
File Articles of Organization (Form LLC-1)
File your Articles of Organization with the California Secretary of State. The filing fee is $70. You can file online through bizfileonline.sos.ca.gov or by mail.
Information required:
- LLC name
- Business address
- Mailing address (if different)
- Agent for service of process name and address
- Management structure (member-managed or manager-managed)
- Organizer name and signature
Online filings are processed faster than mail filings. Standard processing times vary, but expedited options are available for an additional fee.
File a Statement of Information (Form LLC-12)
Within 90 days of forming your LLC, you must file a Statement of Information with the California Secretary of State. The filing fee is $20. After the initial filing, you must re-file every two years.
This form provides the state with updated information about your LLC, including its address, management structure, agent for service of process, and the nature of the business.
Create an Operating Agreement
California law explicitly recognizes operating agreements as governing documents for LLCs. While not filed with the state, having an operating agreement is crucial for defining your LLC's management structure, member rights, and operating procedures.
Learn more in our operating agreement guide.
Get an EIN
Apply for a free Employer Identification Number from the IRS. You will need this to open a business bank account, hire employees, and file taxes. The online application is free and takes just minutes.
Ongoing California LLC Requirements
- $800 annual franchise tax: Due each year your LLC exists in California. Paid to the Franchise Tax Board.
- Statement of Information: File every two years with the Secretary of State ($20 fee).
- California income tax: LLC income that flows through to members is subject to California personal income tax.
- LLC fee for high earners: If your LLC's gross revenue exceeds $250,000, an additional LLC fee applies.
- Sales tax: If you sell taxable products or services, register with the California Department of Tax and Fee Administration (CDTFA).
Start Your California LLC Today
A formation service can handle the filing, act as your agent for service of process, and help you stay compliant with California's requirements.
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Disclaimer: The information on this page is for general educational purposes only and does not constitute legal or tax advice. California filing fees, franchise tax rules, and regulatory requirements change frequently. Always verify current information with the California Secretary of State and the Franchise Tax Board, or consult a qualified attorney or tax professional.
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