Form an LLC in California
We file your Articles of Organization, register an agent, and deliver your formation documents. Total cost from $215 on Standard.
State filing fee
$90
Typical processing
14 days
Annual report
$20 / yr
California LLCs file with the Secretary of State and pay a $90 filing fee. That number is misleading: every California LLC also owes an annual $800 franchise tax to the Franchise Tax Board, due by the 15th day of the fourth month after formation. There is no first-year exemption for LLCs formed on or after January 1, 2024.
On top of the $800, California LLCs with gross receipts above $250,000 owe an additional LLC fee that scales up to $11,790 for receipts over $5 million. The Statement of Information is also more involved than most states (and renews every two years for $20).
California formation makes sense when you have nexus in California - employees, an office, or a physical presence. For purely remote businesses, the franchise tax alone makes California one of the most expensive states to maintain in the country.
Best for: Businesses with California operations, employees, or a CA physical presence.
Cost & compliance breakdown
| State filing fee | $90 |
|---|---|
| Typical processing | 14 days |
| Annual report fee | $20 |
| Annual report due | Every two years on the formation anniversary |
| Premium expedited fee | $440 (1-day filing) |
- The $800 franchise tax is a minimum - it's owed even by an LLC with no revenue, and it's owed in the LLC's first year unless formed in 2023 or earlier under the now-expired waiver.
- Premium plans pay the $440 expedited state fee for one-business-day filing where time matters.
- The biennial Statement of Information ($20) is the only recurring fee paid to the SoS; everything else flows through the FTB.
California note: Plus $800/yr franchise tax
Watch outs
- - California aggressively asserts nexus over LLCs that "do business" in the state, including remote LLCs whose members live in California - this can trigger the $800 even on an out-of-state entity.
How we file your California LLC
- 1
File Articles of Organization (Form LLC-1)
We file Form LLC-1 with the California Secretary of State, naming the LLC, its management structure, and our registered agent for service of process.
- 2
Pay the $800 franchise tax
Within four and a half months of formation, the LLC must pay the $800 annual franchise tax to the Franchise Tax Board via Form 3522. We add this to your compliance calendar.
- 3
File the Statement of Information (Form LLC-12)
Due within 90 days of formation and every two years thereafter. The fee is $20 and the form discloses members or managers.
- 4
EIN and operating agreement
We obtain your EIN from the IRS and deliver a California-compliant operating agreement (California requires LLCs to maintain one even though it doesn't need to be filed).
What's included
Articles of Organization
Registered agent
EIN (Federal Tax ID)
Operating Agreement
Frequently asked questions
Do all California LLCs pay the $800 franchise tax?
Yes. Every California LLC owes the $800 minimum franchise tax annually starting in its first year of formation, even if there is no revenue and no activity.
When is the Statement of Information due?
Within 90 days of formation, then every two years on the anniversary month. The fee is $20 and the form is filed online with the SoS.
Is there an extra fee for high-revenue LLCs?
Yes. LLCs with gross receipts above $250,000 owe an additional LLC fee on a sliding scale, capped at $11,790 for receipts above $5 million. This is on top of the $800 minimum.
Can a non-California resident own a California LLC?
Yes, there are no residency requirements. But if you are a California resident, forming in another state generally does not avoid the $800 franchise tax because California treats your residency as nexus.
Is publication required in California?
No. California has no publication requirement.
Compare with other states
The states founders most commonly weigh against California.
Ready to form your California LLC?
Total from $215 on Standard. Most founders finish the application in about 15 minutes.