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How to Form an LLC in California

To form a California LLC you file Articles of Organization (Form LLC-1) with the Secretary of State for $70, designate an agent for service of process, file a Statement of Information (Form LLC-12, $20) within 90 days, and pay the $800 annual minimum franchise tax to the Franchise Tax Board.

By Find Local Law Editorial Team · Last reviewed: May 24, 2026

Researched and drafted with AI assistance and verified against primary sources (statutes, Judicial Council forms, and official court websites). This is general information, not legal advice.

A California LLC gives you a liability shield with relatively little formality. Here’s the full process, with the current fees.

The steps

  1. Choose and check your name. Make sure it’s available and meets California’s naming rules (it must include “LLC” or “Limited Liability Company”). Check availability on the Secretary of State’s bizfile portal.
  2. Designate an agent for service of process. This is who receives legal papers — either a California-resident individual with a physical street address, or a registered corporate agent. An LLC can’t be its own agent.
  3. File the Articles of Organization (Form LLC-1). This is the document that creates the LLC. The Secretary of State filing fee is $70.
  4. File the Statement of Information (Form LLC-12). Due within 90 days of formation, then every two years. Fee: $20.
  5. Handle taxes. Pay the $800 annual minimum franchise tax to the FTB (Form 3522), get a federal EIN, and adopt an operating agreement (not filed with the state, but important between members).

The ongoing costs

  • $800/year minimum franchise tax (first year included for LLCs).
  • Additional LLC fee once California-source income tops $250,000 — starting at $900 and increasing with income.
  • $20 Statement of Information every two years.

Compare structures in choosing a business entity, or see how to form a corporation. For help getting it right, connect with a lawyer.

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Frequently asked questions

How much does it cost to form an LLC in California?
The Secretary of State filing fee for the Articles of Organization (Form LLC-1) is $70, plus a $20 Statement of Information within 90 days. Then the $800 annual minimum franchise tax applies. (Figures current as of 2026.)
Does a California LLC pay the $800 tax in its first year?
Yes. The first-year exemption that applied to LLCs formed in 2021–2023 has expired, so LLCs formed in 2024 or later owe the $800 in their first year (due by the 15th day of the 4th month after formation).
Does a single-member LLC owe the $800 tax?
Yes. The $800 minimum franchise tax applies to every California LLC regardless of the number of members or amount of activity.
Is there an extra fee for higher-revenue LLCs?
Yes. Beyond the $800, California charges an additional annual LLC fee once California-source total income exceeds $250,000 — starting at $900 and rising with income.

Sources

Related guides

  • Business & Breach of Contract Disputes in California When a contract is broken in California, the non-breaching party can usually sue for money damages, and in some cases for specific performance. The deadline to sue is 4 years for a written contract and 2 years for an oral one (Code of Civil Procedure §337/§339).
  • California Contract Basics A valid California contract needs four things: parties capable of contracting, their mutual consent, a lawful object, and consideration (Civil Code §1550). Most contracts can be oral, but some — like real estate sales or agreements that can't be performed within a year — must be in writing under the statute of frauds.
  • Choosing a Business Entity in California California's common business structures — sole proprietorship, partnership, LLC, and corporation — differ mainly in personal liability and taxes. LLCs and corporations shield your personal assets but owe California's $800 minimum annual franchise tax; sole proprietorships and general partnerships avoid that tax but leave you personally liable for business debts.
  • How to Form a Corporation in California To form a California corporation you file Articles of Incorporation (Form ARTS-GS) with the Secretary of State for $100, file a Statement of Information (Form SI-550, $25) within 90 days and then annually, and pay the $800 minimum franchise tax — which is waived in the corporation's first year. An S corporation is a tax election, not a separate entity.

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