How to Start an LLC in California

Learn how to start an LLC in California with the $70 filing fee, the $800 franchise tax, and the LLC-1 form. The complete step-by-step guide for 2026.

Why form an LLC in California?

Learning how to start an LLC in California means planning for higher costs than most states. The filing fee is $70, but the $800 minimum franchise tax is the number to remember. California has the largest economy of any state, and an LLC is a popular choice for small owners here. The structure protects your personal assets and offers flexible tax treatment. The tradeoff is cost, so it pays to understand the numbers before you file. For a quick reference on fees and requirements, see our California state page.

Step 1: Check your LLC name

Your LLC name must be unique in California and must include a designator such as LLC or Limited Liability Company. Use the California Secretary of State's business search to check availability before you file. You can reserve a name for $10 if you are not ready to file yet. Avoid words that imply a bank, insurance company, or other regulated business unless you have the right licenses. A clear, searchable name also helps customers find you later.

Step 2: Appoint a registered agent

California requires every LLC to keep a registered agent with a physical street address in the state. The agent receives legal papers and official mail. You can act as your own agent, but many owners use a professional service to keep their home address private and avoid missing deadlines. Our registered agent guide explains the tradeoffs.

Step 3: File Form LLC-1

The LLC-1 form, officially called Articles of Organization, is the document that creates your California LLC. File it with the Secretary of State, and the fee is $70. You can file online or by mail. The form asks for your LLC name, registered agent, and the address where the Secretary of State can mail documents. Online filing is faster and gives you a confirmation right away. Most online filings are approved within a few business days.

Step 4: File the Statement of Information

Within 90 days of filing the LLC-1, you must file a Statement of Information. The fee is $20 by mail or $10 online. This form lists your managers or members and a business address. After the first filing, you renew it every two years. Missing the deadline triggers a $250 late fee, so put the renewal date on your calendar. The state sends a reminder, but do not rely on it.

Step 5: Get an EIN and open a bank account

After your LLC exists, apply for an Employer Identification Number from the IRS. It is free and takes about 10 minutes online. You need the EIN to open a business bank account and file taxes. See our EIN guide for the details. Then open a separate business checking account to keep personal and business money apart. That separation protects your personal assets if the business is ever sued.

Step 6: Write an operating agreement

California does not require an operating agreement, but it is a smart safeguard. The document records ownership percentages, management duties, and how profits are shared. For a single-member LLC, a simple agreement confirms that you treat the business as a separate entity. For multi-member LLCs, it prevents disputes over money and control.

The $800 franchise tax and ongoing costs

Here is the ongoing cost picture for a California LLC as of 2026. The LLC-1 filing is $70. The Statement of Information is $10 online or $20 by mail. The franchise tax is $800 per year, due by the 15th day of the fourth month after your tax year ends. That $800 is the minimum, and it applies even if your LLC earns nothing. Budget for it every year, and remember that high-income LLCs may owe more.

Frequently Asked Questions

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

The LLC-1 filing fee is $70, and the Statement of Information costs $10 online or $20 by mail. The bigger cost is the $800 minimum franchise tax, which is due every year. Plan for roughly $900 in state fees and taxes in your first year.

What is the $800 franchise tax in California?

It is an annual tax every California LLC must pay, even if the business earns no money. It is due by the 15th day of the fourth month after your tax year ends. The $800 is the minimum; you may owe more if your income is high.

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

Online filings are typically processed within a few business days. Mail filings can take several weeks. You can pay an extra fee for expedited processing if you need your LLC approved quickly.

Do I need a registered agent in California?

Yes. California requires every LLC to have a registered agent with a physical street address in the state. You can be your own agent or hire a professional service.

When is the Statement of Information due?

The first Statement of Information is due within 90 days of filing your LLC-1. After that, it is due every two years. The late fee is $250, so file on time.