How to Start an LLC in California (2026)
Filing your California LLC costs $70 for the articles of organization, but the state also charges an $800 annual franchise tax that kicks in during your first year. Here's exactly how the process works from start to finish.
In This Article
- Overview
- Quick Facts
- Introduction
- Choose a Name for Your California LLC
- Choose a Registered Agent in California
- File Your Articles of Organization with the California Secretary of State
- Get an EIN for Your California LLC
- Create an Operating Agreement for Your California LLC
- Open a Business Bank Account for Your California LLC
- File Your California Statement of Information
- Federal BOI Reporting
- Top 3 LLC Services
- FAQ
- Next Steps
What You'll Learn in This Guide
This guide walks you through every step to legally form a Limited Liability Company (LLC) in California, from picking a name to staying compliant year after year. We've kept it practical, current, and free of unnecessary fluff.
Note
California LLC formation costs $70 in state fees. Most founders complete the process in 2 business days as of August 28, 2026, either DIY or through a formation service starting at $0.
California LLC: Quick Facts
Last Verified: Sep 2026- Filing Fee (Online)
- $70
- Processing Time
- 2 business days as of August 28, 2026
- Expedited Available
- Yes (24 hours / $350)
- Statement of Information
- $20 (biennial)*
- State Income Tax
- Yes
- Sales Tax Rate
- 7.25%
- Filed With
- Secretary of State
- Last Verified
- September 5, 2026
* Statement of Information: $20, due Every two years by the last day of the anniversary month of the LLC's formation.
What California LLC Formation Actually Involves
A California LLC separates your personal assets from your business liabilities. If your LLC gets sued or takes on debt, your house, car, and personal savings stay protected. That separation only holds if you treat the LLC as its own entity, which means proper paperwork and a dedicated bank account.
California is one of the more expensive states for LLC formation. Beyond the $70 filing fee, you'll owe an $800 franchise tax every year regardless of whether your business earns any revenue. You'll also need to file a $20 Statement of Information within 90 days of forming your LLC. These costs are important to budget for before you file.
The actual formation process is straightforward and happens online through the Secretary of State's bizfile portal. You'll choose a compliant business name, designate a registered agent, file your articles of organization, and handle a few post-formation tasks like getting an EIN and opening a bank account. Most founders can complete the filing itself in under an hour.
Choose a Name for Your California LLC
Your LLC name must meet California's naming requirements and be distinguishable from every other business registered with the Secretary of State.
California requires your LLC name to be distinguishable from any other business entity already on file with the Secretary of State. You can search existing names using the state's free online business search tool. If your desired name is available but you're not ready to file yet, you can reserve it for 60 days for $10.
Search available names →California LLC Naming Requirements
Name Reservation (Optional)
- Reserve your name for 60 days through the Secretary of State
- Reservation fee is $10
- Search available names at bizfileonline.sos.ca.gov/search/business
Pro Tip
Search the Secretary of State's business database before you get attached to a name. You can check availability for free at bizfileonline.sos.ca.gov.
Choose a Registered Agent in California
Every California LLC must designate a registered agent who can accept legal documents and official notices on behalf of your business during normal business hours.
Your registered agent is the person or company that receives legal papers, tax notices, and government correspondence for your LLC. They must have a physical street address in California (not a P.O. Box) and be available during standard business hours. The agent you choose will be listed on your public filing.
Your Registered Agent Options
- Yourself, if you're a California resident with a physical address you don't mind making public
- A trusted friend or family member who lives in California and is reliably available during business hours
- A professional registered agent service, which keeps your personal address off public records and ensures you never miss a legal notice
State Specific
California does not allow an LLC to act as its own registered agent. Your agent must be an individual California resident or a corporation that has filed a Section 1505 Certificate with the Secretary of State.
File Your Articles of Organization with the California Secretary of State
The articles of organization (Form LLC-1) officially create your California LLC. You'll file online through the Secretary of State's bizfile portal.
California handles LLC filings online through the bizfile portal at bizfileonline.sos.ca.gov. Mail filing is not available. You'll complete Form LLC-1 (Articles of Organization) directly on the website, provide your LLC name, registered agent information, management structure, and purpose statement, then pay the $70 filing fee.
$70
Filing Fee
Articles of Organization
$20
Statement of Information
Due within 90 days
$800
Annual Franchise Tax
Due every year
After You File
State Specific
California requires a separate $20 Statement of Information within 90 days of formation. The $800 annual franchise tax is due by the 15th day of the 4th month after you form your LLC.
Pro Tip
Set a calendar reminder for three dates after you file: your Statement of Information deadline (90 days), your first franchise tax payment (15th day of the 4th month), and your biennial Statement of Information anniversary.
Important
The $800 annual franchise tax applies to all California LLCs regardless of income. It's due every year by the 15th day of the 4th month after your formation anniversary. Missing it triggers penalties and interest.
Recommended: Northwest Registered Agent
$39 + state fee. Includes registered agent, business address, domain, website, email, and phone. No upsells.
Get an EIN for Your California LLC
An EIN is a federal tax ID number for your business. You need one to open a bank account, hire employees, and file taxes.
Apply for your EIN directly on the IRS website at no cost. The online application takes about 10 minutes and you'll receive your number immediately. You'll need your LLC's legal name, formation date, and the responsible party's Social Security number.
Apply for your EIN on IRS.gov →Even single-member LLCs with no employees should get an EIN. California banks will require it when you open your business account, and it keeps your Social Security number off business documents.
Create an Operating Agreement for Your California LLC
California law requires LLCs to have an operating agreement. This document defines how your business is owned, managed, and run.
California requires every LLC to have an operating agreement, from a single member business up to a large partnership. This document doesn't get filed with the Secretary of State, but it's your LLC's internal rulebook. Without one, California's default LLC laws will govern your business, and those defaults may not match what you actually want.
Key Sections to Include
State Specific
California is one of the states that legally requires an operating agreement. Under the California Revised Uniform Limited Liability Company Act, your LLC must adopt one.
Pro Tip
Your operating agreement doesn't need to be filed with the state. Keep it with your business records and make sure every member has a signed copy.
Open a Business Bank Account for Your California LLC
A separate business bank account keeps your personal and LLC finances apart, which is essential for maintaining your liability protection.
Mixing personal and business funds is one of the fastest ways to lose your LLC's liability protection. If a court finds you've been treating the LLC's money as your own, it can "pierce the corporate veil" and hold you personally responsible for business debts. Open a dedicated business checking account as soon as your LLC is approved and run all business transactions through it.
What to Bring to the Bank
- Your filed and approved Articles of Organization
- Your EIN confirmation letter from the IRS
- Your California LLC operating agreement
- A valid government-issued photo ID for all signers
- Your initial deposit (amount varies by bank)
File Your California Statement of Information
Every California LLC files a Statement of Information within 90 days of forming and every two years after that. Since 1 August 2026 the online filing option only appears once you have set up User Access.
The Statement of Information is California's version of an annual report. It is the filing that puts your agent for service of process on the public record. It asks for the LLC name and file number, the agent and their California street address, the address of your principal office, and your managers, or every member if you appointed none. The fee is $20. There is no PDF form for LLCs, the Secretary of State takes it online only.
Secretary of State fees for the LLC Statement of InformationEffective 1 August 2026 the Secretary of State requires web User Access before you can file a Statement of Information online. The option is only visible to users who have access established, so without it you get no error message, you simply do not see the filing anywhere in the portal. You request access inside bizfile Online, and the change exists to stop anyone else submitting filings on your entity's record. Any guide written before August will walk you to a screen that no longer shows the option.
Statement of Information filing tips, User Access update dated 1 August 2026$20
Filing Fee
Every two years
90 days
First Statement
After your articles are filed
6 months
Filing Window
Opens five months early
The deadline is the last day of your formation anniversary month, but the window opens five months earlier. California sets the filing period as the calendar month your articles were filed plus the five months immediately before it, so an LLC formed in January can file any time from 1 August through 31 January. Filing early costs the same $20 and it takes the job out of a month you may be busy.
Before You Start the Filing
If nothing in your last statement has changed, California lets you tell the Secretary of State exactly that instead of refiling the whole thing. The obligation and the fee stay the same, so it saves typing rather than money.
State Specific
Set up User Access before your filing window opens rather than on the day it closes. Since 1 August 2026 it is the only route to the online Statement of Information, and requesting it is a separate step from the filing itself.
Pro Tip
Look up your own Date Filed on the Secretary of State business search before you diary anything. The filing window is built from the month your articles were filed, not the month you started trading or registered with your city.
Important
Missing the deadline does not bill you $250 the next morning. The Secretary of State sends a notice of delinquency first, and you have 60 days from that notice to file. Only after those 60 days is the LLC certified to the Franchise Tax Board, which then assesses the $250 penalty set by Revenue and Taxation Code section 19141. File inside the 60 days and the penalty is abated, and the Secretary of State can waive it for reasonable cause. Leave it and the LLC faces suspension or forfeiture.
Federal BOI Reporting
No. FinCEN exempted every company formed in the United States from beneficial ownership reporting in an interim final rule published 26 March 2025 and applied from 21 March 2025, then made that exemption permanent in a final rule published 11 August 2026 and effective 14 August 2026. Only entities formed under foreign law and registered to do business in a US state still report.
Top 3 LLC Formation Services
We've independently reviewed the top LLC formation services in California. Here's how they compare.
| Feature | Northwest Registered Agent Best Overall | ZenBusiness Best for LLC Formation | Tailor Brands Best for Branding |
|---|---|---|---|
| Starting Price | $39 + state fees | $0 + state fees | $0 + state fees |
| Formation Speed | Same-day only on the $199 package | 7-10 days, 1 day on Pro | 1-14 business days |
| Support | Lifetime Corporate Guides | Phone, Chat, Email | Phone, Chat, Email |
| States Covered | 50 states | 50 states | 50 states |
| In Business Since | 1998 | 2015 | 2014 |
| Get Started → | Get Started → | Get Started → |
Frequently Asked Questions
What to Do Next
Once your California LLC is approved, take these steps to set your business up for success.
Get an EIN
Apply for free in about 10 minutes at IRS.gov, required before opening a bank account or hiring anyone.
Open a Business Bank Account
Keep personal and business finances separate from day one. Bring your EIN, Articles of Organization, and a government ID.
Create an Operating Agreement
Even if California does not require one, an operating agreement protects your liability shield and defines how the LLC is managed.
File Your Statement of Information
The window opens five months before your anniversary month, and since 1 August 2026 you need User Access in bizfile Online before the option appears at all.
Paying contractors
California is in the IRS forwarding program, so an e-filed 1099-NEC can reach the state. Check the California floor before you skip a form under $2,000.
Ready To File?
Start your California LLC with Northwest Registered Agent. $39 + state fee includes registered agent, business address, domain, and more.
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