Filing a California LLC is inexpensive: the Articles of Organization cost just $70. Keeping it is a different story. Every California LLC owes an $800 annual tax to the Franchise Tax Board, starting in its first year, whether or not it earns a dollar. Know that number before you file.
California LLC quick facts
| Formation document | Articles of Organization (Form LLC-1) |
|---|---|
| Filing fee | $70, filed online through bizfile Online |
| Faster processing | 24-hour: $350 · Same day: $750 |
| Statement of Information | $20, first one due within 90 days of forming, then every two years |
| Annual LLC tax | $800 a year, including the first year |
| Extra LLC fee | Only if total California income reaches $250,000 or more |
| Agent for service of process | Required (a California resident or a registered corporate agent) |
| Newspaper publication | Not required |
| Where to file | bizfile Online |
Step 1Pick a name that California will accept
The name has to end with Limited Liability Company, LLC or L.L.C. (“Limited” and “Company” may be shortened to “Ltd.” and “Co.”). It must also be distinguishable from names already registered with the Secretary of State.
California is stricter than most states about wording. An LLC name can’t include bank, trust, trustee, incorporated, inc., corporation, corp., insurer or insurance company, and words that suggest a government connection, such as Agency, Bureau or Department, are treated as misleading.
Run a preliminary check with the state’s business search. The Secretary of State notes that this search isn’t a final ruling on availability; the name is officially approved only when your filing is.
Step 2Name an agent for service of process
California calls the registered agent an agent for service of process. It’s the person or company that accepts lawsuits and legal notices for your LLC. You have two choices:
- an individual who lives in California and has a California street address (a P.O. box won’t work), or
- a corporation registered with the Secretary of State as a commercial agent (under Corporations Code section 1505).
Your LLC can’t act as its own agent, but you personally can, if you live in California. Keep in mind that the agent’s name and address are public.
Step 3File your Articles of Organization
California’s formation filing is short. Submit Form LLC-1 through bizfile Online and pay the $70 fee. You’ll provide the LLC’s name, its addresses, your agent’s details and how the LLC will be managed.
The Secretary of State doesn’t publish a standard turnaround time. Instead it posts the date of the filings it is currently working on, on its processing dates page, so check there for a realistic estimate. If timing matters, you can pay $350 for 24-hour or $750 for same-day handling.
Step 4File your first Statement of Information
This is the step new owners most often miss. California requires a Statement of Information within 90 days of forming your LLC, and then every two years after that. It lists your addresses, managers or members and agent, and the fee is $20.
After the first one, you file during a six-month window that ends with the month your LLC was formed. For example, an LLC formed in March files between October and March. Missing it can cost you a $250 penalty from the Franchise Tax Board.
Step 5Plan for the annual tax
Every LLC that is organized in, registered in or doing business in California owes the $800 annual tax, even if it is inactive or loses money. The tax keeps coming due every year until the LLC is formally cancelled.
- First payment: due by the 15th day of the 4th month after you file with the Secretary of State. An LLC filed on June 19 owes its first $800 by September 15.
- After that: due by the 15th day of the 4th month of each tax year, which is April 15 for most LLCs.
- Higher earners: once total California income reaches $250,000, a separate LLC fee applies on top of the tax, rising to $11,790 at the highest tier.
A cut is coming. Under a 2026 budget law, an LLC’s first-year tax drops to $400 for taxable years beginning in 2027 through 2029. An LLC formed late in 2026 still owes the full amount for 2026, so the timing of your filing can matter.
The earlier first-year exemption, which applied to LLCs formed from 2021 through 2023, has ended.
Step 6Finish the setup
- Operating agreement. California doesn’t file it, but you should have one. It records who owns what and how decisions get made.
- EIN. Get your federal tax ID for free from the IRS. Never pay a third party for one.
- Local licenses. Your city or county may require a business license, and some activities need state permits.
What a California LLC really costs
| Articles of Organization | $70 (one time) |
|---|---|
| Initial Statement of Information | $20 |
| Annual LLC tax | $800 per year, starting the first year |
| Statement of Information (ongoing) | $20 every two years |
| LLC fee | Only with California income of $250,000 or more |
A new California LLC should budget for the $70 filing, the $20 Statement of Information and the $800 tax in its first year, plus a registered agent service if you use one.
Doing it yourself vs. hiring a service
The paperwork itself is simple, and the state fee is low. The bigger risk in California is the ongoing calendar: the 90-day Statement of Information, the biennial filings and the annual tax. Formation services charge their own fee, but they usually handle the filing, can serve as your agent for service of process and send reminders. If you file yourself, put those deadlines on your calendar the day your LLC is approved.
Frequently asked questions
Do I really owe $800 if my LLC makes no money?
Yes. The annual tax applies to every LLC organized or doing business in California, regardless of income, until the LLC is cancelled. One narrow exception: an LLC that did no business in California and had a taxable year of 15 days or less doesn’t owe it.
How do I stop owing the tax if I close the business?
The LLC has to be formally cancelled with the Secretary of State. Simply stopping operations doesn’t end the tax. An LLC cancelled within 12 months of filing its Articles can avoid the first-year tax.
How long does California take to approve an LLC?
It varies. The Secretary of State posts the date of the filings it is currently processing; online filings move faster than paper.
Can I form a California LLC for my medical or law practice?
No. California LLCs can’t provide services that require a state professional license.
Sources
- California Secretary of State: LLC forms and fees
- California Secretary of State: expedited service options
- California Secretary of State: current processing dates
- California Secretary of State: Statements of Information
- California Secretary of State: business entities FAQ
- California Secretary of State: name guidelines and restrictions
- California Secretary of State: LLC tax and professional services information
- Franchise Tax Board: Limited liability company
- Franchise Tax Board: LLC filing information (FTB 3556)
- Franchise Tax Board: What’s new (SB 122)
- Franchise Tax Board: penalties
- IRS: Get an Employer Identification Number