How to Start an LLC in California
Everything you need to form an LLC in California — step-by-step instructions, exact costs, and the best formation services compared side-by-side.
California LLC at a Glance
Filing Fee
$70
Processing
5 days
Annual Report
$20/yr
State Tax
Yes
Special Requirements in California
- California $800 annual franchise tax (waived for the first year for LLCs formed after January 1, 2024)
- California requires a Statement of Information within 90 days of formation and biennially thereafter ($20)
Choose Your LLC Name in California
Your LLC name must be unique and distinguishable from other businesses registered in California. It must include "LLC," "L.L.C.," or "Limited Liability Company." You can check name availability on the Secretary of State website before filing.
Pro Tip
Search for your proposed name on the Secretary of State website to make sure it's available before you pay the filing fee.
Appoint a Registered Agent in California
California requires every LLC to designate a registered agent — a person or company authorized to receive legal documents and official correspondence on behalf of your business. Your registered agent must have a physical address in California (no P.O. boxes).
Pro Tip
You can be your own registered agent for free, but most business owners hire a service ($100–$250/year) for privacy and reliability. A professional service ensures you never miss important legal documents.
File Your Articles of Organization in California
File your Articles of Organization with the Secretary of State. The filing fee is $70, and standard processing takes about 5 business days. You can file online through the Secretary of State website or mail a paper form.
Pro Tip
Filing online is faster and often provides instant confirmation. Most formation services handle this step for you and include the state filing fee in their price.
Create an Operating Agreement
An operating agreement outlines how your LLC is managed, how profits are distributed, and what happens if a member leaves. While not all states legally require one, it's essential for protecting your limited liability status and preventing disputes.
Pro Tip
Even single-member LLCs should have an operating agreement. It strengthens your liability protection and helps separate personal and business finances. Most formation services include a template.
Get an EIN (Employer Identification Number)
An EIN is like a Social Security number for your business. You'll need it to open a business bank account, hire employees, and file taxes. The IRS issues EINs for free — apply online and get your number instantly.
Pro Tip
Apply directly on the IRS website for free. It takes about 5 minutes and you'll receive your EIN immediately. Don't pay a service to do this unless it's bundled with your formation package.
Open a Business Bank Account
A separate business bank account is critical for maintaining your LLC's liability protection. It keeps your personal and business finances separate, which courts look for when evaluating whether your LLC should protect your personal assets.
Pro Tip
Bring your Articles of Organization, EIN confirmation letter, operating agreement, and a photo ID to the bank. Many online banks like Mercury or Relay offer free business checking with no minimums.
Compare LLC Formation Costs in California
See the total cost to form your California LLC across every major formation service — including the $70 state filing fee, service fees, and registered agent costs.
Select your state to compare costs
We'll compare formation costs across 5 services — including state filing fees, service fees, and registered agent costs — so you can find the best deal.
Ongoing Requirements for California LLCs
After forming your LLC, California has ongoing compliance requirements you need to stay on top of to keep your LLC in good standing.
Annual Report
California requires an annual report with a fee of $20. Missing this deadline can result in penalties or administrative dissolution.
Registered Agent
You must maintain a registered agent in California at all times. If you hired a service, expect to pay $100–$250/year for renewal. You can change your registered agent by filing an amendment.
State Taxes
California has a state income tax with rates ranging from 1% to 13.3%, the highest in the nation. The franchise tax is $800/year.
Good Standing
Keep your LLC in good standing by filing all required reports on time, maintaining your registered agent, and paying applicable taxes. Falling out of compliance can result in penalties or dissolution.
Not sure California is right for your LLC?
Take our Best State to Form quiz to compare California against other states based on your specific business needs.
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Frequently Asked Questions About California LLCs
How much does it cost to form an LLC in California?
The filing fee for forming an LLC in California is $70, paid to the Secretary of State when submitting your Articles of Organization.
How long does it take to form an LLC in California?
Standard processing for a California LLC typically takes 5-10 business days when filed online. Paper filings can take several weeks.
Do I need a registered agent in California?
Yes, every LLC formed in California is required to designate an agent for service of process with a physical street address in the state to receive legal and official documents.
What are the ongoing costs of an LLC in California?
California LLCs must pay an $800 annual franchise tax and file a biennial Statement of Information with a $20 fee. LLCs earning over $250,000 may also owe an additional LLC fee. These costs make California one of the more expensive states for LLC maintenance.