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.
The standard California formation model is $70 for LLC-1, $20 for the initial Statement of Information and a generally applicable $800 annual LLC tax: $890 before optional services or other obligations. Specific tax exceptions and cancellation rules can change that amount. A separate LLC fee uses statutory California total income, not simply net profit.
- 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
The standard California formation model is $70 for LLC-1, $20 for the initial Statement of Information and a generally applicable $800 annual LLC tax: $890 before optional services or other obligations. Specific tax exceptions and cancellation rules can change that amount. A separate LLC fee uses statutory California total income, not simply net profit.
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.
The 8 Steps to Form a California LLC
California LLC Cost Calculator
Use the standard $70 filing + $20 initial Statement of Information + generally $800 annual LLC tax model below. The tool does not decide tax exceptions or cancellation eligibility; check those separately. Optional services and other obligations can change the total.
Shows a standard active-LLC formation scenario before other taxes, licenses or professional services. The $800 annual LLC tax is generally applicable, with exceptions. No separate $5 online filing charge is assumed. Confirm the actual fees for selected services.
The general AB 85 first-year waiver expired after qualifying 2021–2023 tax years. The $800 annual LLC tax generally applies to later formations, but specific 15-day/no-business, deployed-military and eligible short-form cancellation exceptions remain. Check FTB conditions before deciding whether tax is due.
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.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Review address-use rules and privacy policies; a service does not remove all information from public filings.
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California LLC — FAQ
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.
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