Form an LLC in California

Q: Should I form my LLC in another state to avoid California fees?

Usually no. If you operate in California you generally must register and pay the $800 tax anyway, and you'd add a second state's fees on top.

Form your California LLC the right way – CountSure files your Articles of Organisation, serves as your agent, and keeps you ahead of the $800 franchise tax. Access to the largest economy in the U.S.

Requirements, costs & steps for an California LLC

Forming a limited liability company (LLC) in California gives you personal liability protection, pass-through taxation, and access to the largest economy in the United States. It also comes with one of the country’s more demanding compliance regimes – most notably the $800 annual franchise tax. This guide walks you through exactly what it costs, how to file, and what you must keep doing every year to stay in good standing. If you’d rather hand it off, our California LLC formation service handles the entire filing for you.

What you need to know?

Filing fee:

$70 for Articles of Organisation (Form LLC-1), filed with the California Secretary of State.

Franchise tax:

$800 every year, owed even with zero revenue. The first-year exemption expired for LLCs formed in 2024 or later.

Statement of Information:

Due within 90 days of formation, then every 2 years; $20x fee.

Registered agent:

Required - must have a physical California street address (no PO boxes).

Extra LLC fee:

LLCs with California income of $250,000+ owe an added tiered fee from $900 to $11,790.

California LLC at a glance

The essentials for forming and maintaining a California LLC.

Requirement	Detail (2026)
Formation document	Articles of Organization (Form LLC-1)
Filing agency	California Secretary of State (bizfileOnline.sos.ca.gov)
State filing fee	$70
Typical processing time	A few business days online; expedited options available
Registered agent	Required; physical CA address
Initial Statement of Information	Within 90 days of formation - $20
Ongoing Statement of Information	Every 2 years - $20
Annual franchise tax	$800 minimum, paid to the Franchise Tax Board
Added LLC fee (income $250k+)	$900-$11,790, tiered by gross receipts
State tax return	Form 568 (LLC Return of Income)

How to form an California LLC, Step by Step

Seven steps from name check through your franchise tax and licenses.

Choose and check your LLC name

Your name must include “LLC,” “L.L.C.,” or “Limited Liability Company,” be distinguishable from existing California entities, and avoid restricted words (e.g., “bank,” “trust,” “insurance”) without approval. Search availability on the Secretary of State’s bizfile portal; you can reserve a name for 60 days for $10.

Appoint a registered agent

California calls this the “agent for service of process.” It can be an individual resident or a registered corporate agent with a physical California address, available during business hours. CountSure can serve as your agent.

File your Certificate of Organization (Form LL-01)

Submit online, by mail, or in person with the $70 fee. You’ll provide the LLC name, business address, registered agent, and management structure (member-managed or manager-managed).

Create an operating agreement

California law requires LLCs to have an operating agreement (it can be written or oral, but written is strongly advised). It is an internal document – you do not file it with the state.

Get an EIN from the IRS

Free from the IRS and needed to open a business bank account, hire employees, and file taxes.

Register for state taxes and licenses

Due within 90 days of formation, with a $20 fee.

Pay the $800 franchise tax and handle licenses

Pay the franchise tax to the FTB and obtain any city/county business licenses your industry and location require.

Naming & Member Requirements

A compliant name and a clear management structure keep your filing on track. Here’s what California requires.

Ongoing California LLC Compliance & Taxes

Annual franchise tax - $800

Every California LLC owes a minimum $800 franchise tax to the Franchise Tax Board, regardless of income or activity, for as long as the LLC exists. The first-year exemption that applied to LLCs formed between 2021 and 2023 has expired, so LLCs formed in 2024 or later owe it in year one. The first payment is generally due by the 15th day of the 4th month after formation.

Statement of Information - $20

File within 90 days of formation, then every two years on your formation anniversary. Missing it triggers a $250 penalty and can lead to suspension.

Added LLC fee for higher earners

If your LLC’s California-source income reaches $250,000 or more, you owe an additional tiered fee ranging from $900 to $11,790 on top of the $800.

State tax return and EIN

Most California LLCs file Form 568 (LLC Return of Income) with the FTB. An EIN from the IRS is free and required for banking, hiring, and most tax filings.

PLLCs

Note: California does not allow professional services to form standard LLCs or PLLCs the way many states do; licensed professionals typically use a professional corporation instead.

California LLC Cost Breakdown

What you’ll actually pay to form and run a California LLC.

Item	Cost (2026) · paid to
Articles of Organization	$70 · Secretary of State (one-time)
Name reservation (optional)	$10 · 60-day hold
Initial Statement of Information	$20 · within 90 days of formation
Biennial Statement of Information	$20 · every 2 years
Annual franchise tax	$800 · FTB, every year (min.)
Added LLC fee (income $250k+)	$900–$11,790 · FTB, tiered
Registered agent (optional service)	~$49-$300/yr · third party
EIN	$0 · IRS (free)

Insight From Our Team

“The number that catches California founders off guard isn’t the $70 filing fee – it’s the $800 franchise tax, and especially the back-to-back hit when you form late in the year. If you’re setting up in October, November, or December and you’re not in a rush to operate, using a January 1 future filing date can save you a second $800 payment within months. We walk every client through this timing before we file.”

Parth Shah
CountSure

Related Guides & Services

Frequently Asked Questions

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

The state filing fee is $70. Counting the $20 Statement of Information and the $800 franchise tax, the realistic first-year cost is about $890 before optional services.

Does every California LLC have to pay the $800 franchise tax?

Yes. The $800 minimum franchise tax is owed by virtually every California LLC each year, even with no income, for as long as the LLC exists.

How long does it take to form a California LLC?

Online filings are typically approved within a few business days, with expedited options available for an additional fee.

Do I need a registered agent?

Yes. California requires an agent for service of process with a physical in-state address. You can act as your own agent, but many owners use a service for privacy and reliability.

Can a single person form an LLC in California?

Yes. California permits single-member LLCs, which are taxed as disregarded entities by default but still owe the $800 franchise tax.

Should I form my LLC in another state to avoid California fees?

Usually no. If you operate in California, you generally must register and pay the $800 tax anyway, and you’d add a second state’s fees on top.

The applicable legal fees may vary over time. For the most up-to-date fee information, please click here to verify the latest figures.

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Start your California LLC with CountSure

Skip the agency back-and-forth and the franchise tax surprises. CountSure files your California LLC, serves as your registered agent, and keeps you compliant year after year.