California LLC: How to Start an LLC in California (2026 Guide)

Learn how to start an LLC in California in 2026. Step-by-step guide to filing Articles of Organization, the Statement of Information, and the $800 franchise tax.

California is home to millions of small businesses, and forming an LLC there is a popular choice. To start an LLC in California, you file Articles of Organization with the Secretary of State, name a registered agent, and plan for the state's annual franchise tax. The process is straightforward, but California has a few extra requirements you should know about.

Why form an LLC in California

California has one of the largest economies in the world, and an LLC gives you limited liability protection while keeping the paperwork lighter than a corporation. Profits pass through to your personal tax return, so you avoid double taxation. For freelancers, consultants, and small teams, the LLC is often the right fit.

Name rules for a California LLC

Your LLC name must end with "LLC", "L.L.C.", or "Limited Liability Company". It can't be too similar to an existing name on file with the Secretary of State, and it can't include restricted words like "bank" or "trust" without approval.

• Check name availability through the California Secretary of State's business search.
• You can reserve a name for 60 days with a name reservation filing.
• If you do business under another name, you'll need to file a fictitious business name statement with your county.

Registered agent requirement

Every California LLC must have a registered agent with a physical street address in California. The agent receives legal documents and official mail for your business. You can act as your own agent, or you can use a registered agent service to protect your privacy and stay on top of deadlines.

Filing Articles of Organization

The main filing is the Articles of Organization, submitted to the California Secretary of State. You'll list the LLC name, the registered agent, and the business address. Filing online is the fastest option, and the state typically processes filings within a few business days.

1. Choose a name and confirm it's available.
2. Pick a registered agent with a California street address.
3. Complete and file the Articles of Organization.
4. Pay the filing fee.
5. Apply for an EIN with the IRS.

Statement of Information and franchise tax

Within 90 days of filing, you must submit your first Statement of Information to the Secretary of State. After that, it's due every other year. The form updates your address, managers, and agent information.

California also charges an $800 annual franchise tax for LLCs, and it's due even if your business loses money. Many owners are surprised by this, so budget for it from day one. The tax is separate from any income tax you might owe, and it's one of the highest flat fees in the country, so factor it into your pricing from the start.

EIN and costs

You'll need an EIN from the IRS if your LLC has employees or more than one member. Even a single-member LLC usually wants an EIN to open a business bank account. The IRS issues EINs for free online.

• Articles of Organization filing fee: typically around $70, check the current schedule.
• Statement of Information: a small fee, usually under $25.
• Annual franchise tax: $800 per year.
• Registered agent service: often $50 to $300 per year.

For a closer look at what you'll spend, read our guide to LLC costs. You can also compare LLC formation options and learn about annual report requirements. For state-specific details, visit our California state page.

Frequently Asked Questions

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

You'll pay a filing fee for the Articles of Organization, which is typically around $70, plus a small fee for the Statement of Information. The bigger cost is the $800 annual franchise tax, which is due every year. A registered agent service adds $50 to $300 per year if you use one.

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

Yes. California charges an $800 annual franchise tax for LLCs, and it's due even if your business doesn't make money. It's one of the highest flat fees in the country, so budget for it from the start. The tax is separate from any income tax you might owe.

When is the Statement of Information due for a California LLC?

Your first Statement of Information is due within 90 days of filing your Articles of Organization. After that, it's due every two years, in the month your LLC was formed. The form updates your address, managers, and registered agent information with the Secretary of State.

Does a California LLC need a registered agent?

Yes. Every California LLC must have a registered agent with a physical street address in California. The agent receives legal documents and official mail for your business. You can be your own agent, or you can use a service to keep your address off public records.

How long does it take to form an LLC in California?

Online filings with the California Secretary of State are usually processed within a few business days. Mail filings take longer, often a few weeks. Expedited processing is available for an extra fee if you need your LLC approved quickly.