How to Start an LLC in California (2026)

Q: How much does a California LLC really cost?

Filing the Articles of Organization costs $70, but the real cost is the $800 annual minimum franchise tax owed to the Franchise Tax Board every year, plus a $20 Statement of Information every two years. So the first year is roughly $890, and about $800 a year after that, before any income tax.

Q: Do I have to pay the $800 tax the first year?

Yes. California briefly waived the first-year $800 franchise tax for LLCs formed in 2021 through 2023, but that exemption expired. LLCs formed in 2024 and later owe the $800 starting the first year, generally by the 15th day of the fourth month after forming.

Q: When is the California Statement of Information due?

Within 90 days of forming your LLC, and then every two years after that. It costs $20 and is filed with the Secretary of State through BizFile Online. Missing it can trigger a $250 penalty.

Q: Is California a good state to form an LLC?

If you live and do business in California, form it there — the $800 tax applies to any LLC doing business in the state anyway, so forming elsewhere doesn't dodge it and only adds foreign-registration costs. Form out of state only if you genuinely live and operate elsewhere.

Last updated: July 21, 2026

To start a California LLC, file the Articles of Organization (Form LLC-1) for $70 through BizFile Online, file a $20 Statement of Information within 90 days, and get a free EIN from the IRS. The catch every guide should lead with: California charges an $800 minimum franchise tax every year, and the first-year exemption has expired — so budget for it from day one.

Quick note: we're operators, not attorneys or accountants. This is general educational info, not legal or tax advice — California's rules are strict, so confirm the details with the state and a licensed pro before filing.

California is more expensive than most states thanks to the $800 franchise tax, and you deserve to know that up front instead of after you file. Here's the honest, plain-English process for starting a California LLC.

Read this before you file The $70 filing fee is the small part. Every California LLC owes an $800 minimum franchise tax per year to the Franchise Tax Board — and unlike a few years ago, there's no first-year exemption anymore. If $800/year doesn't fit your plan yet, factor that in before forming.

How to start a California LLC in 6 steps

Name it, appoint an agent for service of process, file the LLC-1 ($70), file the Statement of Information ($20), get a free EIN, then pay the $800 franchise tax.

Name your California LLC

Your name must be distinguishable from existing California businesses and include "LLC" or "Limited Liability Company." Search the California Secretary of State's business search first, then lock in the matching domain.

Appoint an agent for service of process

California calls the registered agent an "agent for service of process." It's the same idea: a person or registered service with a physical California address to receive legal mail. You can be your own, or use a service to keep your home address private — Northwest includes it free the first year with their $39 filing.

File the Articles of Organization (LLC-1)

File Form LLC-1 through BizFile Online with the California Secretary of State and pay the $70 filing fee. This is the document that officially creates your LLC. Online filings are typically processed within a few business days.

File the Statement of Information (LLC-12)

Within 90 days of forming, file the Statement of Information (Form LLC-12) for $20, then again every two years. It confirms your addresses and management. Miss it and California can hit you with a $250 penalty.

Get a free EIN from the IRS

Get your EIN free at irs.gov in a few minutes — you need it for a business bank account and taxes. Don't pay a third party for it; they just submit the same free IRS form.

Pay the $800 annual franchise tax

This is the one California is known for. Every LLC pays an $800 minimum franchise tax to the Franchise Tax Board each year, generally due by the 15th day of the 4th month after forming, then annually. High earners (over $250k gross receipts) also owe an extra LLC fee — most new courier operations won't hit that.

California LLC cost breakdown

Cheap to file ($70), but the $800 yearly franchise tax makes California one of the pricier states to keep an LLC active.

Item	Cost	Required?
Articles of Organization (LLC-1)	$70 one-time	Yes
Statement of Information (LLC-12)	$20 (within 90 days, then every 2 yrs)	Yes
EIN	Free from the IRS	Yes (free)
Annual franchise tax (FTB)	$800/yr (from year one)	Yes
Registered agent service	$0 (yourself) – $300/yr	No

California figures as of 2026 (first-year $800 exemption expired after 2023). Verify current amounts at sos.ca.gov and ftb.ca.gov before filing.

Want the filing handled? Northwest will form your California LLC for $39 + the $70 state fee and be your agent for service of process the first year. Doesn't remove the $800 tax (nothing does), but it takes the paperwork off your plate. See the $39 formation service → Affiliate link — we may earn a commission at no extra cost to you.

Building a courier business in California?

The LLC is just the setup. Our course covers the parts that make the $800 worth it — insurance and certifications, the business bank account, and how to find routes and win contracts with California clinics, labs, and hospitals.

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California LLC FAQs

How much does a California LLC really cost?

Filing is $70, but the real cost is the $800 annual minimum franchise tax, plus $20 for the Statement of Information every two years. So roughly $890 the first year and about $800/year after — before any income tax.

Do I have to pay the $800 tax the first year?

Yes. The first-year waiver for LLCs formed 2021–2023 has expired. LLCs formed in 2024 or later owe the $800 from year one, generally by the 15th day of the fourth month after forming.

When is the California Statement of Information due?

Within 90 days of forming, then every two years. It's $20, filed through BizFile Online. Missing it can trigger a $250 penalty.

Is California a good state to form an LLC?

If you live and operate in California, form it there — the $800 tax applies to any LLC doing business in the state, so forming elsewhere doesn't avoid it and just adds foreign-registration costs. Only form out of state if you genuinely live and work elsewhere.

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