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California LLC Formation: Start Your California LLC the Right Way
To start an LLC in California, you file Articles of Organization (Form LLC-1) with the California Secretary of State for $70, then file a Statement of Information for $20. Every California LLC also pays an $800 annual tax, starting in the first year. We explain the real cost upfront and file everything for you.
California LLC at a Glance
California’s filing fee is low, but the yearly tax is not. The $800 annual franchise tax applies to every California LLC, even one with no income. Plan for it before you file, not after.
How to Start an LLC in California in 6 Steps
- Choose a name. It must end with “LLC,” “L.L.C.” or “Limited Liability Company” and be different from other names on record. You can search names on bizfile Online.
- Pick a registered agent. California calls this an “agent for service of process.” It can be a person with a California address or a registered agent company.
- File Articles of Organization (Form LLC-1). File online through bizfile Online. The state fee is $70.
- File a Statement of Information (Form LLC-12). This is due within 90 days of forming your LLC and costs $20. After that, you file it every two years.
- Get an EIN and write an operating agreement. The EIN is free from the IRS. California expects LLCs to have an operating agreement, and banks will ask for it.
- Get a seller’s permit if you sell goods. If you sell taxable products in California, register with the California Department of Tax and Fee Administration (CDTFA). The permit is free.
California LLC Cost
The table shows California’s state and tax costs. Our service fee is separate, and we confirm the full price before you pay.
| Item | Cost | When |
|---|---|---|
| Articles of Organization (LLC-1) | $70 | Once, at formation |
| Statement of Information (LLC-12) | $20 | Within 90 days, then every 2 years |
| Annual franchise tax (Franchise Tax Board) | $800 | Every year, including year one |
| Extra LLC fee | Varies | If California income is over $250,000 |
| Seller’s permit (CDTFA) | Free | If you sell taxable goods |
The first-year $800 tax is due by the 15th day of the 4th month after you form your LLC. For example, an LLC formed on June 1 pays by September 15. After that, it is due by April 15 each year for calendar-year LLCs.
California’s $800 Franchise Tax Explained
The California Franchise Tax Board charges every LLC that is formed in California, or registered to do business there, a minimum of $800 a year. You pay it even if your LLC has no sales. It stops only when you formally cancel the LLC.
If your LLC’s California income goes over $250,000, you also pay an extra LLC fee on a sliding scale. A CPA can confirm the amount for your business. We are not tax advisors, but we can connect you with one.
Do You Need a California Registered Agent?
Yes. Every California LLC must have an agent for service of process with a California address. If you live outside California, or want to keep your home address private, use a registered agent service. We provide one.
Is California the Right State for Your LLC?
If you live in California or run your business there, you generally need to be registered in California. Forming in another state does not avoid the $800 tax, because an out-of-state LLC doing business in California must register there and pay it too.
If you live outside the US and have no connection to California, California is usually the most expensive choice. Founders in that position often look at Wyoming, New Mexico or Delaware. We walk you through the options.
How LLCPronto Helps With Your California LLC
- Name check on bizfile Online
- Articles of Organization (LLC-1) filed for you
- Statement of Information filed on time
- California registered agent address
- Operating agreement and EIN
- CDTFA seller’s permit if you need one
- Reminders for the $800 tax and every two-year filing
Short on time? Ask about our urgent service. It costs more, and we tell you the price upfront.
California LLC FAQs
How much does it cost to start an LLC in California?
The state fees are $70 for the Articles of Organization and $20 for the Statement of Information. You also pay the $800 annual franchise tax, starting in the first year.
Do I have to pay the $800 California LLC tax in the first year?
Yes. For LLCs formed in 2024 or later, the $800 tax applies in the first year. It is due by the 15th day of the 4th month after formation.
How long does it take to form an LLC in California?
Online filings through bizfile Online are usually faster than mail. Processing times change during busy periods, so we check the current time before we file.
What is a California Statement of Information?
It is Form LLC-12, a short filing that lists your LLC’s addresses, managers and agent. It costs $20, is due within 90 days of formation, and then every two years.
Can I avoid the $800 tax by forming in another state?
Not if you do business in California. An out-of-state LLC that does business in California must register there and pay the same $800 tax.
Do I need a seller’s permit in California?
You need one if you sell taxable goods in California. It is free from the California Department of Tax and Fee Administration (CDTFA).
Compare Other States
Sources checked September 2026: California LLC fee breakdown · CA Secretary of State bizfile Online · CA Franchise Tax Board LLC info. State fees can change, so we confirm the current fee before we file.
Ready to Start Your California LLC?
Tell us about your business on WhatsApp. We explain every California cost, including the $800 tax, before you pay.