Deal Alert: Northwest Registered Agent forms your LLC for just $39 + state fee — includes 1 FREE year of Registered Agent service. See deal → Northwest forms your LLC for $39 — See deal →
Complete Guide · 8 Steps · Verified June 2026

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

California is home to the world's fourth-largest economy — and one of the priciest LLC regimes in the country. This guide walks you through all 8 steps, from filing your $70 Articles of Organization to navigating the $800 annual franchise tax, with a calculator to estimate your real first-year cost. No publication requirement, but a few California-only fees you must plan for.

Ahmad Adil Written & verified by Ahmad Adil, LLC School·Updated June 2026
Quick Answer

To start a California LLC, file Articles of Organization (Form LLC-1) with the Secretary of State for $70, appoint an agent for service of process, file your initial Statement of Information ($20) within 90 days, and pay the $800 annual franchise tax. Minimum first-year cost is about $890. California has no publication requirement, but LLCs earning $250K+ in the state owe an extra gross-receipts fee.

California LLC — Fast Facts
Filing fee (LLC-1)
$70
Franchise tax
$800/yr
Statement of Info
$20 / 2 yrs
Gross-receipts fee
$0–$11,790
Publication
None
State income tax
Up to 13.3%
Agency
SOS + FTB

Starting an LLC in California: The Overview

Forming an LLC in California gives you liability protection and access to the largest economy in the United States — but it comes with a higher price tag than most states. The headline cost is the $800 annual franchise tax, which every California LLC pays each year, even with zero revenue. Add a $70 filing fee and a $20 Statement of Information, and your realistic first-year minimum lands around $890.

The good news: California has no newspaper publication requirement (unlike New York), the process is fully online, and the eight steps below are straightforward once you know the order. Let's walk through each one.

California LLC formation paperwork with the Golden Gate Bridge and California state flag in the background

The 8 Steps to Form a California LLC

1
Name Your California LLC
Pick a unique, compliant name with "LLC" and check availability on the Secretary of State's bizfile search.
2
Appoint an Agent for Service of Process
California's term for a registered agent — a person or company with a California address to receive legal mail.
3
File Articles of Organization (Form LLC-1)
The $70 filing that officially creates your LLC, submitted online through California's bizfile portal.
4
Create an Operating Agreement
Required by California law for every LLC — it sets ownership, management, and profit rules. Not filed with the state.
5
File the Statement of Information (LLC-12)
A $20 filing due within 90 days of formation, then every two years. Miss it and the state charges a $250 penalty.
6
Get Your EIN
Your free federal tax ID from the IRS — required for banking, hiring, and taxes.
7
Pay the $800 Franchise Tax
California's mandatory annual tax, due even in year one — plus the gross-receipts fee if you earn $250K+.
8
Understand California LLC Taxes
Federal pass-through tax, self-employment tax, and California's income tax (up to 13.3%) — with an estimator.

California LLC Cost Calculator

California's true first-year cost is more than the $70 filing fee. Use this calculator to estimate your real Year-1 total, including the mandatory $800 franchise tax and any gross-receipts fee:

California LLC Year-1 Cost Calculator
Mandatory fees + your options
Articles of Organization (LLC-1)Required to form your LLC
$70
$800 annual franchise taxRequired — yes, even in year one
$800
Statement of Information (LLC-12)Required within 90 days
$20
Agent for service (pro service)Optional — privacy & reliability
$125
Name reservationOptional — hold a name 60 days
$10
Online filing convenience feeIf filing via bizfile online
$5
Required California fees$890
Gross-receipts fee$0
Optional add-ons$0
Your Year-1 Total$890

Estimate of California state filing fees and the FTB franchise tax/fee for year one. Excludes federal/state income tax, business licenses, and professional services. Online filing adds a $5 convenience fee. Not legal or tax advice.

The "first-year free" myth — don't get caught outYou may read that new California LLCs skip the $800 tax in year one. That waiver (AB 85) expired at the end of 2023. For any LLC formed in 2024, 2025, or 2026, the $800 franchise tax is due from the first year. Only new corporations still get first-year relief — not LLCs. Budget for the $800 from day one.

Is California Worth It?

If you live in California or do meaningful business there, you generally have to register and pay the $800 regardless of where you form — so forming in Wyoming or Nevada to "escape" California fees usually backfires. You'd end up paying twice: once in the formation state and again to register as a foreign LLC in California.

Don't form out-of-state to dodge the $800If you're physically operating in California, form your LLC in California. An out-of-state LLC doing business in California must register as a foreign LLC and still pays the $800 — so you'd just be doubling your paperwork and fees. The "form in Wyoming" advice only fits businesses with no California nexus.

Ahmad Adil's #1 Recommendation
Form Your California LLC with Northwest
★★★★★4.9/5.0 · Privacy by Default · All 50 States
  • ✓Forms your California LLC for $39 + the $70 state fee
  • ✓Acts as your agent for service of process
  • ✓Can track & file your Statement of Information
  • ✓No upsells · No data selling · Privacy by Default
$39+ $70 CA state fee
Form My CA LLC →

Disclosure: LLC School may earn a commission via this link, at no cost to you. See our advertising disclosure.

Ahmad Adil's Take: California gets a bad rap for being expensive, and the $800 tax is real — but for most founders actually operating in the state, it's unavoidable, so the smart move is to plan for it rather than fight it. Two tips that save people the most grief: form your LLC early in the year (or use a January 1 future file date) so you don't pay the $800 twice within a few months, and set a calendar reminder for the Statement of Information — a forgotten $20 form triggers a $250 penalty. Work through the 8 steps in order and you'll have a clean, compliant California LLC.
Frequently Asked Questions

California LLC — FAQ

How much does it cost to start an LLC in California?
The filing fee for Articles of Organization is $70, but your realistic first-year minimum is about $890 once you add the mandatory $800 annual franchise tax and the $20 Statement of Information. LLCs earning $250,000+ in California also owe a gross-receipts fee of $900 to $11,790.
Does a new California LLC have to pay the $800 tax the first year?
Yes. The first-year exemption (AB 85) expired at the end of 2023. Any LLC formed in 2024 or later owes the full $800 franchise tax in its first year. Some websites still list the old waiver — it no longer applies to LLCs, only to new corporations.
Does California require a publication like New York?
No. California has no newspaper publication requirement. That's one area where it's simpler (and cheaper) than New York, which can cost over $1,000 to publish. California's added costs come from the franchise tax and fees instead.
What is the California Statement of Information?
It's a $20 filing (Form LLC-12) that lists your LLC's address, management, and agent for service of process. The first one is due within 90 days of forming, then every two years. Missing it triggers a $250 penalty and possible suspension, so don't overlook it.
Should I form my LLC in Wyoming to avoid California fees?
Not if you operate in California. An out-of-state LLC doing business in California must register as a foreign LLC and still pays the $800 — so you'd pay in both states. Forming in Wyoming only makes sense if you have no California business presence. For most California residents, forming in California is the right call.
How long does it take to form a California LLC?
Online filings through California's bizfile portal are typically processed within a few business days, though times vary with volume. The state also offers expedited processing for an additional fee if you need your LLC formed faster.
Do I need an operating agreement in California?
Yes. California law requires every LLC to have an operating agreement (it can be written or oral, but written is strongly recommended). You don't file it with the state, but you should keep it with your records — banks and investors often ask to see it. See Step 4.
Ahmad Adil, founder of LLC School
About the Author
Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. The California figures in this guide — the $70 LLC-1 filing fee, the $800 annual franchise tax (including the expired AB 85 first-year waiver), the $20 Statement of Information, and the §17942 gross-receipts fee schedule — were verified against the California Secretary of State and Franchise Tax Board. LLC School updates its state guides as the rules change.

About Ahmad Adil → Compare All States →
Start Here · Step 1 of 8
Name Your California LLC
Search name availability and meet California's naming rules before you file.
Step 1: Name Search
Scroll to Top
0
Would love your thoughts, please comment.x
()
x