⬤ California · LLC Formation
How to Form an LLC in California
Form your California LLC the right way – CountSure files your Articles of Organization, 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 a 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.
The short answer: To form an LLC in California you file Articles of Organization (Form LLC-1) with the Secretary of State for a $70 filing fee, appoint a registered agent with a physical California address, file an initial Statement of Information within 90 days, and pay the $800 annual franchise tax. Most online filings are approved within a few business days. Realistic first-year state cost: about $890 ($70 + $20 Statement of Information + $800 franchise tax). You can verify the fees from official website of California – Click here to verify
⬤ Key takeaways
What you need to know?
- Filing fee: $70 for Articles of Organization (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.
⬤ Step by step
How to form a California LLC,step by step
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 franchise tax to the FTB and obtain any city/county business licenses your industry and location require.
⬤ Naming & ownership
Naming & member requirements
- Required ending: “LLC,” “L.L.C.,” or “Limited Liability Company.” “Ltd.” and “Co.” may be used for the abbreviated words.
- Restricted words: Terms implying banking, insurance, or trust powers generally need regulatory approval.
- Name reservation: Reserve an available name for 60 days for $10 before filing.
- Minimum members: One - California allows single-member LLCs. No residency or age requirement.
- Management: Member-managed or manager-managed; stated on the Articles of Organization.
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
Filed 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
State tax return and EIN
PLLCs
California LLC cost breakdown
What you’ll actually pay to form and run a California LLC.
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 file date can save you a second $800 payment within months. We walk every client through this timing before we file.”
Parth Shah
CountSure
⬤ Keep exploring
Related guides & services
- All state formation guides
Frequently asked questions
The state filing fee is $70. Counting the $20 Statement of Information and the $800 franchise tax, realistic first-year cost is about $890, before optional services.
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.
Online filings are typically approved within a few business days, with expedited options available for an additional fee.
Yes. California requires an agent for service of process with a physical in-state address. You can act as your own, but many owners use a service for privacy and reliability.
Yes. California permits single-member LLCs, which are taxed as disregarded entities by default but still owe the $800 franchise tax.
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.
Get Started
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.
- Free 30-minute consultation with a CPA
- Fixed-fee, fully transparent pricing
- 100% remote - no travel or visa required
