LLC California: How to Start a California LLC in 2026

California LLC at a glance

For an LLC, California is cheap to enter and expensive to stay in: the Secretary of State charges $70 to form it, but the Franchise Tax Board (FTB) collects $800 every year it exists. Plan for both before you file.

If you live and work in California, you will usually need to form here or register an out-of-state LLC here, so the $800 tax applies either way. If you live outside the US and have no California customers, staff or property, compare the running costs first with our LLC state fee comparison tool.

How to start an LLC in California

You start a California LLC by filing Articles of Organization online, then filing a Statement of Information within 90 days and arranging the $800 tax payment. These are the steps in the order most founders follow.

1. Choose and check the name. Under the Secretary of State’s name guidelines, the name must include "Limited Liability Company", "LLC" or "L.L.C." ("Limited" and "Company" can be shortened to "Ltd." and "Co."). It cannot use words such as bank, trust, trustee, incorporated, inc., corporation, corp. or insurance company. The name must be distinguishable from other LLCs on record, and you can reserve it for 60 days for $10.
2. Appoint an agent for service of process. California’s name for a registered agent. It must be a California resident or a registered corporate agent (see below). Our registered agent service covers this if you do not have one.
3. File the Articles of Organization. File Form LLC-1 on bizfile Online and pay the $70 fee listed on the Secretary of State’s LLC forms and fees page. Our articles of organization guide explains each field.
4. Sign an operating agreement. The Secretary of State’s business entity types page says an LLC is formed with an operating agreement among the members. It is not filed with the state, but keep a signed copy.
5. Get an EIN. The EIN is free from the IRS. With an SSN or ITIN you can apply online; without one you apply by fax, mail or phone, as the IRS EIN page explains. Our EIN application service handles the no-SSN route.
6. File the Statement of Information within 90 days. Form LLC-12 costs $20 and lists the LLC’s addresses, managers or members in charge, and agent.
7. Pay the first $800 annual tax. The FTB says you have until the 15th day of the 4th month from the date you file.
8. Register for other taxes you need, such as a seller’s permit with the California Department of Tax and Fee Administration if you sell taxable goods.
9. Put the next deadlines in your calendar: the $800 tax each year and the Statement of Information every two years. Our compliance deadline calendar helps.

Want our filing team to do it? We check the name, prepare and submit the Articles, arrange the agent, and track everything in your portal. The general process for any state is in our how to start an LLC guide.

California LLC cost

A California LLC costs $70 to form, and the minimum first-year state total is $890 once you add the $20 Statement of Information and the $800 annual tax. After that, expect at least $800 a year plus $20 every second year.

The arithmetic for a small LLC with no expedite: $70 + $20 + $800 = $890 in the first year. In year two you pay $800. In year three you pay $800 + $20 = $820. The yearly LLC fee on top of the $800 tax follows the FTB’s LLC income bands: $900 from $250,000 to $499,999, $2,500 from $500,000 to $999,999, $6,000 from $1,000,000 to $4,999,999, and $11,790 at $5,000,000 or more.

California LLC annual report: the Statement of Information

California does not call it an annual report. The equivalent is the Statement of Information (Form LLC-12), which costs $20, is due within 90 days of formation and is then filed every two years. The Secretary of State’s Statement of Information page sets the fee and timing.

• Filing window: after the first statement, you file during a six-month window that ends with the month the LLC was registered. The Secretary of State’s filing requirements page gives examples: an entity registered in June files between January and June.
• How to file: online through bizfile Online, which needs a user account.
• Changes in between: if your addresses, managers or agent change between filing periods, the Secretary of State says an updated statement should be filed.
• Late: the FTB’s penalties page lists a $250 penalty for a late Statement of Information, which the FTB collects for the Secretary of State. Continued failure can lead to suspension or forfeiture.

The $800 annual tax and Form 568

Separately from the Secretary of State, the FTB says every LLC doing business or organized in California must pay an annual tax of $800. After the first year it is due on the 15th day of the 4th month of the LLC’s taxable year, which is 15 April for a calendar-year LLC. The LLC files Form 568 (Limited Liability Company Return of Income), pays the tax with voucher FTB 3522, and pays any estimated LLC fee with FTB 3536. Late payment adds a penalty of 5% of the unpaid amount plus 0.5% for each month it stays unpaid. Our LLC annual report service covers the Statement of Information and reminders.

California registered agent (agent for service of process)

Every California LLC must name an agent for service of process. The Secretary of State’s business entities FAQs say the agent must be an individual who resides in California or a registered 1505 corporate agent, and that a business entity cannot act as its own agent.

The agent receives court papers for the LLC, and its name and address go on the public record. A member who lives in California can act as agent. Founders who live elsewhere, travel often or prefer to keep their home address off the record usually use a commercial agent. You change the agent by filing an updated Statement of Information, and an agent who wants to stop serving files a Resignation of Agent (Form RA-100), which has no fee.

California LLC registration timing and expedite options

California does not promise a standard approval time, but it publishes the date it is working on. Its processing times page, updated 25 September 2026, showed online formations received on 23 September 2026 under review. If you need a guaranteed turnaround, the Secretary of State’s service options are $350 for 24-hour service or $750 for same-day service, both available online. Our team starts once your order and documents are complete, and we cannot make the state move faster than it publishes.

State taxes that affect a California LLC

Beyond the $800 annual tax and the LLC fee, the main state taxes are income tax on owners and sales tax on taxable sales.

• Doing business in California: an LLC formed elsewhere can still owe the $800 tax if it is doing business in California. The FTB’s doing business page includes any transaction for financial gain in the state and, for 2025, California sales above $757,070, property above $75,707 or payroll above $75,707 (or 25% of the total).
• Sales and use tax: a seller outside California must register with the CDTFA and collect use tax once its sales of tangible goods for delivery into California exceed $500,000 in the current or preceding calendar year, according to the CDTFA’s remote seller guidance. Our sales tax registration service can file the application.
• Income tax: profit of an LLC taxed as a partnership or disregarded entity passes through to its owners. California-source income can be taxed in California even for owners who live elsewhere; ask a licensed tax professional about your facts.

Forming a California LLC as a non-resident

You do not have to live in California or the US to form a California LLC. You do need an agent for service of process in California, and the $800 tax applies from the first year whether or not the LLC earns anything.

That cost is why most founders outside the US with no California operations form in Wyoming or New Mexico instead, where the yearly state cost is far lower. Our Wyoming vs Delaware vs New Mexico LLC comparison and best state for an LLC guide set out the numbers. Be careful, though: the FTB applies the $800 tax to every LLC doing business in California, wherever it was formed, so forming elsewhere only saves money if the business is not active in California.

• Form 5472: a single-member LLC wholly owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no income. The penalty for not filing is $25,000, and it cannot be e-filed. See our Form 5472 guide.
• BOI: US-formed LLCs, including those owned by non-US persons, no longer file beneficial ownership reports with FinCEN under the final rule published 14 August 2026.
• Address: the agent’s address is for legal papers. Banks usually want a separate business address, which our US business address service provides.

How to dissolve an LLC in California

To close a California LLC you file a termination online through bizfile Online, which has no Secretary of State fee, and file a final tax return with the FTB. The business entities FAQs say you file the Election to Terminate and the Termination for a California LLC, or only the Termination if all members vote to dissolve. The forms page lists the Certificate of Dissolution (LLC-3), Certificate of Cancellation (LLC-4/7) and Short Form Cancellation Certificate (LLC-4/8) with no fee.

• Within one year of organizing: the FTB says you can use the Short Form Cancellation (LLC-4/8).
• Final return: file the final Form 568, tick the Final Return box, and stop doing business in California after the final taxable year.
• Statement of Information: keep it current until the termination is filed, so no $250 penalty is added.

If an LLC simply stops filing, the $800 tax and penalties keep building up. Our LLC dissolution service handles the state filing and the final federal steps.

Doing it yourself vs using Borderless Filings

You can form a California LLC yourself on bizfile Online for $70, file the $20 Statement of Information and pay the $800 tax to the FTB. The forms are short.

What our service adds is preparation and checking before filing (name rules, agent, addresses), submission by our filing team, tracking and secure document storage in your portal, the EIN without an SSN for non-residents, and reminders for the Statement of Information and the $800 tax so penalties do not build up. Prices are on our pricing page with the state fee shown at cost, and you can start your order once you have a name. Compare other states on our US LLC states page.

Sources

• California Secretary of State: Limited Liability Companies, California (Domestic) forms and fees
• California Secretary of State: Limited Liability Companies, Statement of Information
• California Secretary of State: Statement of Information filing requirements
• California Secretary of State: Service options
• California Secretary of State: Processing times
• California Secretary of State: Business entities FAQs
• California Secretary of State: Name availability and reservations
• California Secretary of State: Name regulations, requirements and restrictions
• California Secretary of State: Business entity types
• Franchise Tax Board: Limited Liability Company
• Franchise Tax Board: Penalties and interest
• Franchise Tax Board: Doing business in California
• California Department of Tax and Fee Administration: Remote sellers (Wayfair)
• IRS: Get an employer identification number
• IRS: Instructions for Form 5472
• FinCEN: Beneficial Ownership Information Reporting

Fees, deadlines and rules on this page were last checked on 27 September 2026.