Starting an LLC in California means filing Articles of Organization (LLC-1) with the California Secretary of State for $70, filing a $20 Statement of Information within 90 days, and paying the Franchise Tax Board’s $800 annual LLC tax, first due by the 15th day of the fourth month after you file. Add a registered agent, an operating agreement and an EIN, and the realistic minimum first-year cost to the state is $890 (as of October 2026).
That $800 tax is the number to plan around. California’s temporary first-year exemption only covered tax years beginning before January 1, 2024, so an LLC formed in 2026 owes the tax from its first year.
Updated October 2026.
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Best LLC Formation Services in California (2026)
Comparing services for forming an LLC in California? Start with this ranked shortlist; details for each pick follow the table.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | CA Registered Agent.org | California registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | California Registered Agent.ai | California registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in California. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. CA Registered Agent.org
CA Registered Agent.org is a California registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. California Registered Agent.ai
California Registered Agent.ai is a California registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
California LLC at a glance
| Topic | California rule (as of October 2026) |
|---|---|
| Filing office | California Secretary of State, Business Programs Division |
| Online portal | bizfile Online |
| Formation document | Articles of Organization (LLC-1) |
| Filing fee | $70 |
| Statement of Information | $20 (LLC-12); due within 90 days of formation, then every two years |
| Annual state tax | $800 to the Franchise Tax Board, plus an LLC fee once total income reaches $250,000 |
| Name reservation | Optional; $10 for 60 days |
| Agent | Agent for service of process with a California address |
| Publication | Not required |
Fees are from the Secretary of State’s domestic LLC forms page and the Franchise Tax Board’s LLC page. If you want to see state fees and service costs side by side, Mainstay Filing lists California LLC costs here.
Step 1: Choose a California LLC name
The name must end with “LLC,” “L.L.C.” or “Limited Liability Company” (abbreviations of “Limited” and “Company” are also accepted), and it can’t be the same as, or confusingly similar to, a name already on file. Words that suggest a regulated business, such as bank, trust or insurance, raise problems for an LLC, so steer clear of them unless you’ve confirmed the rules.
Use the namechk business name generator if you’re starting from scratch. When you have three or four candidates, run them through the Secretary of State’s bizfile business search, and use our California business name search guide to interpret what you find.
Two other checks matter in a state this crowded. Search the USPTO trademark records for federal conflicts, and confirm the .com and social handles on namechk before you print anything.
If you need a few weeks before filing, a name reservation costs $10 and holds the name for 60 days. You can submit it through bizfile Online.
Step 2: Designate an agent for service of process
California’s term for a registered agent is “agent for service of process,” and every LLC must designate one. The agent can be an individual who lives in California and has a California street address, or a corporation that has registered with the Secretary of State to act as an agent.
Being your own agent is legal, but the address becomes public and you must be there to accept legal papers during business hours. Remote owners, home-based businesses and anyone who values privacy usually hire a professional instead. Mainstay Filing, for example, includes agent service for the first year when it forms your LLC. See our California registered agent guide for the details.
Step 3: File Articles of Organization (LLC-1)
File through bizfile Online: the Secretary of State now lists the domestic LLC Articles of Organization as an online-only filing, and the fee is $70. You’ll provide:
- The LLC name
- The purpose statement (California’s form uses standard language)
- The initial street and mailing addresses
- The agent for service of process
- Whether the LLC is managed by one manager, more than one manager, or all members
- The organizer’s signature
Once the Articles are approved, the LLC exists. The two follow-up filings below are where California owners most often slip.
Step 4: File the Statement of Information within 90 days
Every California LLC must file a Statement of Information (LLC-12) within 90 days of registration and then every two years. Later statements are due by the last day of the LLC’s registration-anniversary month, and you can file during that month or the five months before it. The fee is $20, and a late statement can trigger a $250 penalty. The statement lists the LLC’s addresses, its managers or members, its agent and a short description of the business.
Put the deadline on your calendar the day the LLC is approved. File it on bizfile Online, the same portal used for formation.
Step 5: Pay the $800 annual tax and any LLC fee
The California Franchise Tax Board (FTB) collects an $800 annual tax from every LLC that is organized or doing business in the state. Your first payment is due by the 15th day of the fourth month after you file with the Secretary of State, and later payments follow the same rule for each tax year.
Bigger LLCs owe an additional fee based on total California income:
| Total income | LLC fee |
|---|---|
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
The FTB says the fee must be estimated and paid by the 15th day of the sixth month of the current tax year.
Step 6: Write an operating agreement and get an EIN
California law expects LLC members to have an operating agreement, but it isn’t filed with the state. Keep a signed copy with your records that covers ownership, management, voting and distributions, plus what happens when a member leaves.
Next, apply for an EIN directly with the IRS; it’s free and takes a few minutes online. FinCEN’s BOI page states that U.S.-formed companies are exempt from beneficial ownership reporting under the rule effective August 2026, so that federal filing no longer applies to a new California LLC.
Step 7: Get permits and register for state taxes
California has no single statewide business license. Cities and counties issue local business licenses (often called business tax certificates), and many professions need state board licenses. The state’s CalGold service lists permits by city and industry.
If you sell tangible goods, you’ll likely need a seller’s permit from the California Department of Tax and Fee Administration; its permits and licenses page covers who needs one. Employers also register with the Employment Development Department for payroll taxes.
How much does a California LLC cost in year one?
| Item | Amount |
|---|---|
| Articles of Organization (LLC-1) | $70 |
| Statement of Information (LLC-12) | $20 |
| FTB annual tax | $800 |
| Minimum first-year total | $890 |
Optional and variable costs include the $10 name reservation, local business licenses and the FTB’s LLC fee if total income reaches $250,000.
California LLC FAQs
How much does it cost to start an LLC in California?
California charges $70 for Articles of Organization and $20 for the Statement of Information due within 90 days, as of October 2026. Every LLC also owes the Franchise Tax Board’s $800 annual tax, first due by the 15th day of the fourth month after filing, so the minimum first-year state cost is about $890.
Is there still a first-year exemption from the $800 California LLC tax?
No. According to the Franchise Tax Board, the first-year exemption applied only to LLCs whose first tax year began on or after January 1, 2021 and before January 1, 2024. An LLC formed in 2026 owes the $800 annual tax for its first year, unless it cancels within the first year using the short-form cancellation.
When is the California Statement of Information due?
A California LLC must file its first Statement of Information (LLC-12) within 90 days of registering with the Secretary of State, and then every two years. The fee is $20, and it can be filed online through bizfile Online. The statement updates the LLC’s addresses, managers or members, and agent for service of process.
Can I be my own registered agent in California?
Yes. California calls the role “agent for service of process,” and an individual who lives in California and has a California street address can serve, including an owner. The address appears on the public record, so many owners use a corporate agent registered with the Secretary of State instead.
How long does a California LLC name reservation last?
A California name reservation holds the name for 60 days and costs $10, according to the Secretary of State. You can file it online through bizfile Online. A reservation is optional and only useful if you need time before submitting the Articles of Organization.
Do California LLCs pay more than $800 a year?
Some do. In addition to the $800 annual tax, the Franchise Tax Board charges an LLC fee once total income reaches $250,000, starting at $900 and rising to $11,790 for $5 million or more. LLCs taxed as corporations pay corporate franchise tax instead. Local business tax certificates add their own costs.
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