How to Start an LLC in California (2026)
The exact 7-step process to form a California LLC — what it costs, how long it takes, and the order that keeps you compliant from day one.
Reviewed by the NerdMoney editors — 8+ years covering small-business formation, tax, and compliance across all 50 states.
Forming a California LLC in 2026 takes about 15 minutes online and costs $70 to file the Articles of Organization. You'll also pay California's $800 annual franchise tax — non-negotiable, due whether you make money or not. Most founders are operational in 3–5 business days when they file online. Below: every step, the order it has to happen in, and where most people lose weeks. If you'd rather skip the paperwork, our recommended filing service handles all of this in one flow.
| Item | Cost | When |
|---|---|---|
| Articles of Organization (Form LLC-1) | $70 | Day 1 |
| Statement of Information (Form LLC-12) | $20 | Within 90 days |
| Annual franchise tax (FTB) | $800 | Every year, by April 15 |
| EIN (federal tax ID) | Free | After approval |
| Registered agent (optional service) | $0–$125/yr | Ongoing |
| Operating agreement | $0 (DIY) or included with filer | Day 1 |
Step 1: Pick a name that passes the California search
Your name must end in LLC, L.L.C., or Limited Liability Company, and can't be confusingly similar to any active California entity. Search the California Secretary of State business search before you fall in love with a name.
You can reserve a name for 60 days for $10 if you're not ready to file — but if you're filing in the same session, skip it.
Step 2: Appoint a California registered agent
California calls it an Agent for Service of Process. It can be you, another California resident with a physical street address (not a P.O. box), or a commercial registered agent service. If you list your home address, it becomes public record on the Secretary of State's site — most founders pay $50–$125/year for a service to keep their address private.
Step 3: File the Articles of Organization (Form LLC-1)
This is the $70 filing that actually creates your LLC. File online at bizfileonline.sos.ca.gov for the fastest turnaround — typically 3–5 business days. Mail filings can take 4–6 weeks during peak season.
Step 4: Draft an operating agreement
California legally requires every LLC to have an operating agreement (Cal. Corp. Code § 17701.02). It doesn't have to be filed anywhere, but it does have to exist — otherwise default state rules govern everything from profit splits to dissolution. Full template + walkthrough in our CA operating agreement guide.
Step 5: Get your EIN from the IRS
An EIN is free directly from the IRS website. Takes 10 minutes, issued instantly Monday–Friday, 7am–10pm Eastern. Never pay a third party for an EIN — it's always free.
Step 6: File the Statement of Information (Form LLC-12)
Within 90 days of forming you must file Form LLC-12 and pay $20. Then every two years. Miss it and California hits you with a $250 penalty. Full LLC-12 walkthrough →
Step 7: Plan for the $800 annual franchise tax
Every CA LLC owes an $800 minimum franchise tax regardless of revenue, paid to the FTB on Form 3522. Due by the 15th day of the 4th month after formation. Read the full $800 fee breakdown →
Sources & further reading
- California Secretary of State — Business Filings — sos.ca.gov
- Franchise Tax Board — LLC tax information — ftb.ca.gov
- IRS — Apply for an EIN online — irs.gov
FAQ
How much does it cost to start an LLC in California in 2026?
$70 to file the Articles of Organization, $20 for the Statement of Information within 90 days, and $800 per year for the franchise tax. Total first-year cost is roughly $890.
Can I avoid the $800 California franchise tax?
No. Every California LLC owes the $800 annual franchise tax, even with zero revenue. Forming in Delaware or Wyoming doesn't help if you actually do business in California — you'll owe it as a foreign LLC.
How long does it take to form a California LLC?
Online filings are typically approved in 3–5 business days. Paper filings take 4–6 weeks.
Do I need a lawyer to start a California LLC?
No. Most founders use a filing service or DIY directly on the Secretary of State site for $70.
Can I be my own registered agent in California?
Yes, if you're a California resident with a physical street address and available during business hours. Trade-off: your address becomes public record.