How to Form an LLC in California: Steps & Cost (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

You form a California LLC by filing Articles of Organization (Form LLC-1) with the California Secretary of State and paying the $70 filing fee. Within 90 days you must file a Statement of Information (Form LLC-12) for $20, and every LLC owes an $800 annual tax to the Franchise Tax Board. File online through bizfile Online for the fastest processing.

California Agency and Form: Secretary of State, Form LLC-1

A California LLC is created by filing Articles of Organization with the California Secretary of State. The correct document is Form LLC-1, and the Secretary of State's acceptance of it is the legal act that brings the LLC into existence under the California Revised Uniform Limited Liability Company Act. Form LLC-1 asks for the LLC's name, its business address, the agent for service of process, and whether the LLC is member-managed or manager-managed. The name must include an LLC designator (such as "LLC" or "Limited Liability Company") and be distinguishable from names already on file. You file through bizfile Online, the Secretary of State's business filing portal, which is the fastest route. For the national overview, see how to form an LLC and what is an LLC.

One point specific to California is worth flagging before you file: professional services that require a state license - such as law, medicine, or accounting - generally cannot be provided through an LLC in California and instead use a professional corporation. For ordinary businesses, though, the LLC is the default choice, and Form LLC-1 is the same document whether you are a single-member or multi-member LLC. Confirm your profession is eligible before filing, because the Secretary of State will not screen this for you.

How to Form a California LLC, Step by Step

Forming a California LLC is a five-step process centered on Form LLC-1. Each step maps to a requirement of California law or a federal tax rule.

1. Choose and check your LLC name. Select a name with an LLC designator that is distinguishable from existing California entities, and check availability through bizfile Online. Confirm it does not infringe a federal trademark.
2. Appoint an agent for service of process. Every California LLC must name a California agent for service of process - an individual who resides in California, or a corporate agent registered with the Secretary of State - to receive legal documents.
3. File the Articles of Organization (Form LLC-1). Submit Form LLC-1 to the California Secretary of State and pay the $70 filing fee, online through bizfile Online or by mail. Once accepted, your LLC legally exists.
4. File the Statement of Information (Form LLC-12). File Form LLC-12 within 90 days of formation and pay the $20 fee, then refile every two years to keep the LLC's information current.
5. Pay the $800 annual tax and get an EIN. Pay the $800 annual tax to the Franchise Tax Board, apply for a free federal EIN from the IRS, and adopt an operating agreement to govern the LLC internally.

After these steps, open a business bank account and keep your agent, Statement of Information, and annual tax current every year. Banks typically ask for the stamped Articles of Organization and your EIN to open the account, so keep the state confirmation and IRS EIN letter together with your operating agreement.

California LLC Filing Fees (2026)

The core cost of a California LLC is the $70 Articles of Organization fee, but the recurring $800 annual tax is the larger ongoing obligation. The table below lists the state fees most new LLCs encounter, each verified against the California Secretary of State or the Franchise Tax Board. Amounts are effective for 2026 and are set by the state.

For a full breakdown including the income-based LLC fee below, see how much a California LLC costs.

The $800 Annual Franchise Tax

The $800 annual tax is California's minimum tax on every LLC that is organized, registered, or doing business in the state, and it is administered by the Franchise Tax Board, not the Secretary of State. For a new LLC, the first $800 payment (FTB Form 3522) is due by the 15th day of the 4th month after you file with the Secretary of State; in later years it is due by the 15th day of the 4th month of the tax year. The tax is owed regardless of income or activity - an LLC that earns nothing still owes $800 until it cancels. This is the same obligation that keeps running if you never close the entity, as covered in how to dissolve an LLC in California.

Understanding why the $800 tax exists helps you plan around it. California treats the annual tax as the price of the limited-liability privilege, so it is owed even in years with no revenue and even by an LLC formed elsewhere but registered to do business in California. Because the first payment is tied to your formation date rather than the calendar year, forming late in the year can mean two $800 payments within a few months - one for the short first year and one for the next full year. Owners who form in the last quarter sometimes choose an effective date at the start of the following year to avoid overlapping payments; confirm the current rules with the Franchise Tax Board before relying on this.

Statement of Information (Form LLC-12)

The Statement of Information keeps the state's record of your LLC current. You file Form LLC-12 with the Secretary of State within 90 days of forming the LLC and pay a $20 fee, then refile every two years. The statement lists the LLC's address, managers or members, and agent for service of process. Filing on time matters: an LLC that fails to file can be assessed a $250 penalty by the Franchise Tax Board and can ultimately be suspended, which strips its right to do business in California.

The Additional LLC Fee on Total Income

Higher-earning LLCs owe an extra fee on top of the $800 tax. The LLC fee applies once an LLC's total California income reaches $250,000 in a year and rises in tiers, reported to the Franchise Tax Board on Form 3536. For 2026 the tiers are:

This fee is separate from the $800 tax and from any income tax the members owe on their share of profits. Members of an LLC taxed as a pass-through also owe self- employment tax on their earnings; some LLCs elect S-corp treatment to change how earnings are taxed.

Note that the LLC fee is based on total California income, not net profit, so a high-revenue, low-margin LLC can owe a meaningful fee even in a thin year. Because the fee is estimated and paid during the year on Form 3536 and reconciled on the annual return, growing LLCs should track their California income mid-year to avoid an underpayment. Budget for both the flat $800 tax and the income-based fee, since together they set your true annual state cost.

Registered Agent (Agent for Service of Process)

The agent for service of process is California's term for a registered agent - the person or company designated to receive lawsuits and official notices for the LLC. California law requires every LLC to continuously maintain one. The agent must be either an individual who resides in California with a physical street address, or a corporate agent that has filed a Section 1505 certificate with the Secretary of State. You name the agent on Form LLC-1 and can change it later by filing an updated Statement of Information. Details are in the California registered agent guide and the national registered agent overview.

Choosing an individual agent is free but ties the LLC's legal notices to that person's home or office address, which becomes public record and requires availability during business hours. A registered corporate agent adds a yearly fee but keeps your address private and ensures notices are received even if you move or travel. Whatever you choose, keeping the agent current is not optional: if the agent resigns or the address becomes invalid and you fail to update it, you can miss a lawsuit and the LLC can lose good standing.

Deadlines and Renewals

California LLCs have three recurring deadlines. The $800 annual tax is due by the 15th day of the 4th month of each tax year. The Statement of Information (Form LLC-12) is due within 90 days of formation and then every two years, based on the LLC's registration month. The income-based LLC fee, when it applies, is generally due by the 15th day of the 6th month of the tax year using Form 3536. Calendar these dates: California is aggressive about penalties and suspension, and a suspended LLC cannot legally operate or defend a lawsuit until it is revived.

A simple way to stay ahead of these dates is to align them at formation. Note your Secretary of State file date, count four months plus fifteen days for the first $800 payment, mark ninety days out for the initial Statement of Information, and set a recurring reminder for the biennial refiling in your registration month. Because the Franchise Tax Board and Secretary of State track compliance separately, keeping a reminder for each agency prevents the common mistake of paying the tax but forgetting the statement, or the reverse.

Penalties for Missing California Requirements

Missing California's requirements carries real consequences. Failing to file the Statement of Information can bring a $250 penalty from the Franchise Tax Board, and continued non-compliance - including unpaid annual tax - can lead the Secretary of State and Franchise Tax Board to suspend or forfeit the LLC. A suspended LLC loses the right to use its name, enter enforceable contracts, and sue or defend in court, and unpaid $800 taxes keep accruing with penalties and interest. Reviving a suspended LLC requires filing the missing statements, paying all balances, and obtaining relief from the Franchise Tax Board.

Frequently Asked Questions

How much does it cost to start an LLC in California?

The state filing fee for Articles of Organization (Form LLC-1) is $70. You also file a Statement of Information (Form LLC-12) for $20 within 90 days, and every LLC owes the $800 annual tax to the Franchise Tax Board. See California LLC cost.

What form do I file to create a California LLC?

Form LLC-1, Articles of Organization. File it online through bizfile Online or by mail with the $70 fee to the California Secretary of State.

Does a California LLC have to pay the $800 tax the first year?

Yes, for LLCs formed on or after January 1, 2024. The temporary first-year exemption under Assembly Bill 85 applied only to entities formed between 2021 and 2023 and has expired, so new LLCs owe the $800 annual tax in their first year.

When is the California Statement of Information due?

File the initial Form LLC-12 within 90 days of formation and refile every two years. The fee is $20. Missing it can bring a $250 penalty and suspension of the LLC.

Does a California LLC need a registered agent?

Yes. California requires an agent for service of process - an individual residing in California or a registered corporate agent - named on Form LLC-1 and kept current.

What is the California LLC fee based on income?

In addition to the $800 tax, an LLC with California total income of $250,000 or more owes a graduated fee: $900 at $250,000, $2,500 at $500,000, $6,000 at $1,000,000, and $11,790 at $5,000,000 or more, reported to the Franchise Tax Board.

Related

• How to form an LLC (cluster hub)
• California registered agent requirements
• How much does a California LLC cost?
• How to get an EIN
• How to dissolve an LLC in California
• What is an LLC?
• S-corp vs LLC
• Self-employment tax

Sources

1. California Secretary of State - LLC Forms (Domestic) (Form LLC-1 $70; Form LLC-12 $20; name reservation $10; cancellation no fee).
2. California Secretary of State - Statements of Information (Form LLC-12; 90-day initial and biennial filing).
3. California Secretary of State - bizfile Online (online filing portal).
4. California Secretary of State - LLC Filing Tips (name distinguishability; agent for service of process).
5. California Franchise Tax Board - Limited Liability Company ($800 annual tax; due 15th day of 4th month).
6. California Franchise Tax Board - FTB Pub. 3556, LLC Filing Information (annual tax; LLC fee tiers; Statement of Information).
7. California Franchise Tax Board - Pay by bank account (Web Pay for businesses) (Form 3522 $800; Form 3536 LLC fee).
8. California Legislative Information - Rev. & Tax. Code § 17942 (LLC fee tiers on total income).
9. California Legislative Information - Rev. & Tax. Code § 17941 ($800 annual tax).
10. California Secretary of State - Agent for Service of Process (Section 1505).
11. IRS - Limited Liability Company (LLC) (federal default classification).
12. IRS - Get an Employer Identification Number (free EIN).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. This page is general information, not legal or tax advice. Fees and thresholds change; verify current requirements with the California Secretary of State and Franchise Tax Board before acting.