How to Start an LLC in California

What it costs to start an LLC in California

The one cost nobody can avoid is the state's filing fee: $70. It goes to California whether you file the Articles of Organization yourself or pay someone to do it. After that, the cost that matters most is the recurring one, because it comes back every two years for as long as the LLC exists.

State fees verified October 2026 and charged by the state, not by us. Our fee is separate and optional. If the state's fee changes before we file, we refund or invoice the difference.

California charges every LLC an $800 annual tax (paid to the FTB, separate from formation) and requires a $20 Statement of Information within 90 days, then every 2 years. The first-year $800 exemption (AB 85) expired for LLCs formed after 2023. A late Statement of Information can draw a $250 penalty. Put both on your calendar and verify exact dates with California.

So the minimum to form a California LLC is $70, paid to the state. With our service it is $169. For how California compares with other states, see LLC cost by state.

How to start an LLC in California, step by step

Six steps take you from an idea to an LLC that is formed and in good standing. The first three happen before California approves anything; the last three start once you have the approved Articles of Organization.

1. Choose a name and check it's available

Your LLC's name must end with a designator such as "LLC", "L.L.C." or "Limited Liability Company", and it must be distinguishable from every other business already on California's records. Words that suggest a regulated business, such as "bank" or "insurance", usually need extra approval.

Search the name in California's business records on bizfileonline.sos.ca.gov before you file. A name that is taken or too close to an existing one is the most common reason a filing comes back. Our guide to LLC name rules covers the details.

2. Name a registered agent

Every California LLC needs a registered agent: a person or company with a street address in California who accepts lawsuits and state notices on the company's behalf during business hours. The agent's name and address go on the Articles of Organization and become public.

• Can you be your own agent? An individual CA resident (e.g. a member) can serve. The entity itself cannot.
• On the filing: Signature on LLC-1. A 1505 corporate agent's advance approval is required (Secretary of State FAQ).

More on the trade-offs in Do you need a registered agent?

3. File the Articles of Organization

The Articles of Organization is the document that creates your LLC. California takes it online at bizfileonline.sos.ca.gov, and the filing fee is $70. It asks for the company name, the registered agent, a mailing address, and the people forming the company. Whoever signs it as organizer does not have to be an owner, which is how filing services sign on your behalf.

What becomes public: Organizer name and signature only. Managers and members first appear on the Statement of Information.

Once California approves the filing, your LLC exists. Keep the approved Articles of Organization; banks ask for it.

4. Adopt an operating agreement

The operating agreement sets out who owns the LLC, how decisions get made, how profits are split, and what happens if an owner leaves. It is not filed with the state. Even a single-owner LLC benefits from one, because it shows the company is run as a separate business, and banks often ask for it.

You can write your own or work with an attorney, especially for complex ownership. See Do you need an operating agreement?

5. Get an EIN from the IRS

An Employer Identification Number is your LLC's federal tax ID. Banks ask for it to open a business account, and you need it to hire employees. Apply directly with the IRS at irs.gov once California has approved your LLC, so the name on the application matches the state record exactly. The IRS does not charge for it.

6. Meet California's after-formation requirements

These are the filings and registrations California expects after formation. Put each one on a calendar the day your LLC is approved.

• Initial Statement of Information (LLC-12). When: within 90 days of registration. Cost: $20.
• Statement of Information. When: every 2 years in the registration month. Cost: $20.
• Franchise Tax Board annual LLC tax. When: first payment due by the 15th day of the 4th month after formation. Cost: $800 minimum per year.

Beyond the state, most new LLCs also open a business bank account and check for state tax registrations and local licenses that fit their line of business. Our checklist, what to do after forming your LLC, walks through them.

How long it takes to form an LLC in California

Two clocks run here: the time it takes to get the Articles of Organization submitted, and the time California takes to review it.

• California's review: varies with the state's workload; California does not post a fixed turnaround in the research we use.
• State expedite: 24-hour $350 or same-day $750, online or drop-off. 4-hour $500 and preclearance $500 are drop-off only (Sacramento).
• Our submission: standard orders go to the state within 3 business days. Same-day orders (+$50) placed by 2 PM Eastern on a business day are submitted that day.

Our same-day option speeds up our submission, not the state's review. State expedite fees, where California offers them, are separate charges paid to the state. More in how long it takes to form an LLC.

California LLC requirements at a glance

• A name ending in "LLC" or an equivalent designator, distinguishable from names already on file.
• A registered agent with a California street address.
• A Articles of Organization filed with California, with the $70 state fee.
• An operating agreement kept in your records (not filed, but recommended).
• California's recurring requirement: $800/year franchise tax + $20 report every 2 years, due statement of Information: anniversary month (biennial); $800 tax: 15th day of the 4th month.

File it yourself or have us file it

Both routes give you the same California LLC, and the state fee is the same either way. The difference is who does the work and who you call when something comes back.

Filing it yourself

1. Search your name in California's records on bizfileonline.sos.ca.gov.
2. Line up a registered agent.
3. Complete the Articles of Organization online at bizfileonline.sos.ca.gov and pay $70 to the state.
4. Watch for approval and save the filed document.
5. Calendar California's after-formation deadlines.

Cost: $70. If your details are straightforward and you are comfortable with state forms, this is a perfectly good way to do it.

Having us file it

People choose a service when they want the filing right the first time without learning California's form, or when their time is worth more than the fee. For $99 on top of the state fee we:

• check the name against California's records before anything is filed;
• prepare the Articles of Organization from a short online application;
• submit it within 3 business days, or the same business day for +$50;
• email you the approved documents and California's next deadlines;
• answer questions by email and phone.

Cost: $169, with the state fee passed through at cost on its own line.

Start your California LLC or read more about our California LLC filing service.