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How to Start an LLC in California

California is cheap to enter and expensive to stay: $70 to file, then $800 a year to the Franchise Tax Board no matter what, plus a gross-receipts fee once income passes $250,000. It is also the state where licensed professionals cannot use an LLC at all. Know both facts before the $70 tempts you.

Filing fee
$70
Articles of Organization via bizfile Online
File at
bizfile Online
the official state portal
Name reservation
$10 via bizfile Online, 60 days
optional in every state

The steps, California edition

  1. Clear the name

    Search the state's registry via bizfile Online. The name needs a designator: "limited liability company," "LLC," or "L.L.C.". Reservation, if you want it: $10 via bizfile Online, 60 days.

  2. Line up the registered agent

    An in-state street address that can receive legal papers during business hours; you can serve yourself or pay a service. The rules and tradeoffs are in our registered agent guide.

  3. File the formation document

    $70 (Articles of Organization via bizfile Online). Processing: Fast lately: online submissions were being reviewed within about 2 to 3 business days as of mid-2026, a big change from the historic backlogs.

    Faster options:

    • 24-hour: $350
    • Same day (in by 9:30 a.m.): $750
    • 4-hour (drop-off, preclearance required): $500

  4. Get the EIN, free

    Minutes at irs.gov, no charge, no service needed.

  5. Adopt an operating agreement and open the bank account

    Not filed with the state, but banks ask for the agreement, and the separate account is what keeps the liability protection real. The general playbook is in our six-step guide.

  6. Calendar the recurring obligations

    Statement of Information ($20) within 90 days of formation and every two years after, plus the real cost: the $800 annual franchise tax to the FTB, owed every year from year one regardless of income.

California taxes and recurring costs, straight

$800 annual franchise tax

Every California LLC owes it, profitable or not, from the first year (the short-lived first-year exemption expired for entities formed after 2023). This single line item makes California the most expensive state in the country to keep an LLC alive.

Gross-receipts LLC fee

On top of the $800, LLCs with California total income of $250,000 or more owe a tiered fee starting at $900 and reaching $11,790 above $5 million, per FTB Form 3556 guidance. It is based on gross income, not profit.

For the raw fee lines next to every other state, see the 50-state cost table or run your numbers in the LLC cost calculator.

CA specifics most guides skip

Thinking about using a formation service?

Every service pays California's same state fees. We compare what they charge on top, and what the $0 tiers actually include.

See the comparison

California LLC questions, answered

How much does an LLC really cost in California?

$70 to form, then at least $800 every year in franchise tax regardless of income, plus a $20 Statement of Information every two years. Cross $250,000 in California gross income and a tiered fee starting at $900 stacks on top. Budget the $800 as the true price of admission.

Is the California $800 fee waived the first year?

Not anymore. The AB 85 first-year exemption applied only to entities formed between 2021 and the end of 2023. LLCs formed now owe the $800 for their first tax year.

Can a doctor or lawyer form a California LLC?

No. California law prohibits LLCs from rendering professional licensed services. Professionals use a professional corporation, or an LLP for law, accounting, and architecture. This is unusual among states and catches a lot of people.

How fast is California LLC processing now?

Much faster than its reputation: online filings were being reviewed in about 2 to 3 business days as of mid-2026. Paid expedites (24-hour $350, same-day $750) exist for genuine urgency.

Other states: Arizona · Florida · Georgia · Illinois · New York · North Carolina · Ohio · Pennsylvania · Texas

Sources

General educational information, not legal or tax advice. Fees, processing times, and rules change; the figures here were verified against official California sources in July 2026, and processing times especially move. Confirm with the state before filing, and consult a professional about your situation.