Starting an LLC in California costs $70 to file, but the state costs for your first year add up to $890. Here’s how to start an LLC in California yourself, step by step, and what you’ll actually pay along the way.
The $70 goes to the California Secretary of State for your Articles of Organization. You can file it on the state’s website with no middleman. A formation service is optional. It can save you time, but it adds its own fee on top of the state’s.
This post contains affiliate links. If you sign up through our links, we may earn a commission at no cost to you. Our recommendations are based on independent research and are never influenced by partners.
Key Takeaways
- Formation fee: $70 for the Articles of Organization (Form LLC-1), paid to the California Secretary of State.
- Annual tax: $800 to the Franchise Tax Board. The first payment is due by the 15th day of the 4th month after you file.
- Ongoing report: the $20 Statement of Information (Form LLC-12) is due within 90 days of forming, then every two years.
- EIN: free from the IRS. Never pay for one.
- Formation service: optional. It adds a fee but isn’t required.
California LLC Costs at a Glance
Forming is only the first cost. Here’s the full picture.
| Item | Cost | When |
|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | When you form |
| Statement of Information (Form LLC-12) | $20 | Within 90 days of forming, then every two years |
| Annual LLC tax (Franchise Tax Board) | $800 | First payment due by the 15th day of the 4th month after you file with the Secretary of State |
| LLC fee (only if total income is over $250,000) | See the FTB site | Based on income |
| EIN (from the IRS) | $0 | After you form |
Sources: California Secretary of State; California Franchise Tax Board; IRS. Figures were current as of October 11, 2026. Fees can change, so confirm on the official sites before you pay.
“Free” in our world means no formation-service fee. The state’s fees go to the state and can’t be avoided.
How to Start an LLC in California: Step by Step
1. Choose and check your business name
Start with the business search on the California Secretary of State’s site, sos.ca.gov. Search for your name to see whether another business already uses it or something close. A name that’s already taken will likely be rejected.
The Secretary of State publishes its own naming rules, including required wording such as an LLC designator. Check those on the site, not on a third-party blog. Then see whether the matching web domain and social handles are free.
2. Appoint a registered agent
A registered agent is the person or company designated to receive official legal papers and state notices for your LLC. You have three typical choices:
- Yourself. This costs nothing. Your agent address becomes part of the public record. You also need to be reliably reachable there.
- Someone you trust. A business partner or family member can do it if they meet California’s requirements.
- A commercial registered agent service. This costs money, but it keeps your home address off the public record and means someone is always there to accept papers.
3. File the Articles of Organization (Form LLC-1)
The Articles of Organization is the document that legally creates your LLC. In California it’s Form LLC-1, filed with the California Secretary of State. The filing fee is $70.
Open the Secretary of State’s “Limited Liability Companies – California Domestic” page and follow the filing instructions. Have these ready:
- Your LLC name
- Your registered agent’s name and address
- Your LLC’s address
- Whether the LLC is member-managed (the owners run it day to day) or manager-managed (appointed managers run it)
A member is an owner of the LLC. Most one-person LLCs are member-managed.
Processing times and expedite options change often. Check the Secretary of State’s site for current timing and any extra fees before you file.
4. Create an operating agreement
An operating agreement is an internal document that sets out who owns what, how decisions get made, and how profits are shared. It isn’t filed with the state.
Even a one-person LLC benefits from one, because it documents that the business is separate from you personally and gives banks something to review. California law (Corp. Code §§ 17701.02(s) and 17701.10) treats every LLC as having an operating agreement, whether written, oral, or implied, so the real choice is whether to put yours in writing. You can write a simple version yourself. For multi-member LLCs, have an attorney look it over.
5. Get your free EIN from the IRS
An EIN (Employer Identification Number) is your LLC’s federal tax ID, a bit like a Social Security number for the business. The IRS says you can get an EIN directly from the IRS in minutes for free, and you never have to pay a fee for one.
Use only the IRS’s own application. A site that charges for an EIN is charging for something free. You typically need your LLC formed first, since the application asks for your legal LLC name and structure. Check the IRS page for current requirements.
6. Plan for California’s $800 annual LLC tax
This is where California stands apart from many states.
According to the California Franchise Tax Board (FTB), every LLC doing business or organized in California pays an $800 annual tax. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State.
Here’s an illustration. Say you file your Articles on October 11, 2026. The 4th month after October is February, so your first $800 payment would be due by February 15, 2027. Confirm your exact date and payment method on the FTB site.
The FTB notes the first-year exemption only applied to tax years 2021 through 2023. A new LLC shouldn’t count on a first-year break. LLCs with more than $250,000 in total income also owe an LLC fee. The FTB’s LLC page explains how it’s calculated.
Weighing S corporation status? Read our LLC vs. S corp breakdown before you decide how your LLC will be taxed.
7. Open a business bank account
With your Articles filed and EIN in hand, open an account in the LLC’s name. Keeping business and personal money separate is a core part of protecting the liability shield an LLC offers. Banks typically ask for your filed Articles, EIN confirmation and operating agreement, though each bank sets its own rules.
Online business banking is one option for small businesses, and Novo is one example. Compare fees and features against your local bank or credit union before you choose.
8. File the Statement of Information (Form LLC-12) on time
The Statement of Information is a short report telling the state who runs your LLC and where to reach it. According to the Secretary of State, it’s Form LLC-12, costs $20, and is due within 90 days of initial registration and every two years after that. Confirm the current fee and timing on the Secretary of State site.
Put the 90-day deadline on your calendar the day you file your Articles.
How to Start an LLC in California Yourself vs. With a Formation Service
The $70 filing fee is the smallest number on the page. The recurring state costs are what shape your first year.
Doing it yourself. Your first-year state costs are:
- $70 Articles of Organization
- $20 Statement of Information
- $800 annual tax to the FTB
- $0 for the EIN
That’s $890 in state costs. The $800 tax is yearly, while the $20 report recurs every two years. A registered agent fee, if you choose to pay one, would be extra.
Using a service. You pay the same state costs plus the service’s own fee. Prices and packages vary and change, so check the provider’s current pricing. Bizee is one formation service, and you can read our walkthrough of forming with Bizee. For a side-by-side look, see our comparison of formation services.
What a service can add:
- Preparing and submitting the filing for you
- Registered agent service, if you want one
- Deadline reminders
- Templates, such as an operating agreement
None of these is required to form a California LLC. If you’re comfortable filling out a short form and keeping a calendar, the do-it-yourself route works. A service makes the most sense if you want a registered agent for privacy, or you value your time more than the fee.
Keeping Your California LLC in Good Standing
Forming is a one-time job. Staying in good standing means meeting these recurring obligations:
- File the Statement of Information (Form LLC-12) within 90 days of forming, then every two years. The fee is $20.
- Pay the $800 annual tax to the Franchise Tax Board each year. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State.
- Pay the LLC fee if your total income exceeds $250,000.
- Keep your registered agent current. If your agent or address changes, you need to update the state.
Late fees and penalties apply for missed filings and payments. We haven’t verified the amounts, so check the Secretary of State and FTB sites for current figures. The simplest protection is calendar reminders set the day you file.
Comparing California with another state? Our guide to LLC filing fees by state shows how costs differ.
How to Start an LLC in California: FAQ
How much does it cost to start an LLC in California?
The state filing fee for the Articles of Organization (Form LLC-1) is $70, according to the California Secretary of State. You’ll also owe a $20 Statement of Information within 90 days and the $800 annual tax to the Franchise Tax Board. A formation service, if you use one, adds its own fee.
Do I have to pay the $800 tax in my first year?
According to the Franchise Tax Board, the first-year exemption only applied to tax years 2021 through 2023. For a newly formed LLC, the first $800 payment is due by the 15th day of the 4th month after you file with the Secretary of State.
Is an EIN free?
Yes. According to the IRS, you can get an EIN directly from the IRS in minutes for free, and you never have to pay a fee for one.
How often do I file the Statement of Information?
According to the Secretary of State, Form LLC-12 is due within 90 days of initial registration and every two years after that. The fee is $20.
Do I need a formation service to start a California LLC?
No. You can file the Articles of Organization yourself with the Secretary of State. A service is an optional convenience that costs extra on top of the state fees.
Your Next Step
Pull up the Secretary of State’s LLC page and run your name search today. Then walk through our 7-step overview of forming an LLC to see how California fits into the bigger picture.
Last updated: October 11, 2026
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
