How to Form an LLC in California (2026)
The filing fee for a California LLC is $70, filed through the California Secretary of State. Standard processing takes 5-7 business days (online). This guide walks you through every step, from choosing a name to getting your EIN.
California LLC at a Glance
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How to Start an LLC in California: Step by Step
Choose a Name for Your California LLC
Your LLC name must be distinguishable from any existing business registered with the California Secretary of State. The name must include "Limited Liability Company," "LLC," or "L.L.C." as a designator.
Designate a Registered Agent in California
California requires every LLC to have a registered agent with a physical address in the state. Your registered agent receives legal documents, lawsuits, and official state correspondence on your behalf.
File Articles of Organization with California
Submit your Articles of Organization (sometimes called a Certificate of Formation) to the California Secretary of State. The filing fee is $70, and standard processing takes 5-7 business days (online).
Your articles typically require: LLC name, registered agent name and address, principal office address, organizer name, and whether the LLC is member-managed or manager-managed.
Create an Operating Agreement
While California doesn't legally require an operating agreement, you need one. Banks require it to open a business account, and without one, your LLC defaults to state rules that may not match your intentions.
Get an EIN (Employer Identification Number)
An EIN is your LLC's tax ID number, issued by the IRS for free. You need it to open a business bank account, hire employees, and file taxes. Single-member LLCs without employees technically aren't required to have one, but you'll want one anyway for banking and to keep your SSN off business forms.
Open a Business Bank Account
Open a dedicated business bank account immediately after formation. Mixing personal and business finances is the number one way owners accidentally pierce their LLC's liability protection. You'll need your Articles of Organization, EIN, operating agreement, and a government-issued ID.
California LLC Cost Breakdown
Here's what you can expect to pay to form and maintain an LLC in California.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| State filing fee (Articles of Organization) | $70 | One-time | Yes |
| Registered agent service | $99-$299/yr | Annual | Yes |
| Annual report filing | $20 | Annual | Yes |
| EIN (Employer Identification Number) | Free (IRS) or $50-$100 (service) | One-time | Recommended |
| Operating agreement | Free (template) or $50-$200 | One-time | Recommended |
| Franchise Tax Board minimum tax | $800/yr | Annual | Yes (CA) |
| Estimated first-year total | $240 + $800 franchise tax (with registered agent service) | ||
What Makes California Unique for LLCs
$800 Franchise Tax
California imposes an annual $800 minimum franchise tax on all LLCs, regardless of income. This is due by the 15th day of the 4th month after your LLC is formed, and every year after that by April 15. New LLCs are exempt from this tax in their first year (as of 2024). LLCs with gross receipts over $250,000 also pay an additional annual fee ranging from $900 to $11,790.
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California LLC: Frequently Asked Questions
How much does it cost to form an LLC in California?
The state filing fee to form an LLC in California is $70. On top of that, you may need a registered agent service ($99-$199/year), an EIN (free from the IRS), and an operating agreement. California also requires an annual report that costs $20 per year. Most formation services like ZenBusiness charge $0 + state fees for basic formation.
How long does it take to get an LLC in California?
Standard processing through the California Secretary of State takes 5-7 business days (online). You can often speed this up by paying for expedited processing directly with the state or through your formation service. Online filings are typically faster than paper filings. Services like ZenBusiness can help ensure your paperwork is correct the first time, avoiding delays from rejected filings.
Do I need a registered agent for my California LLC?
Yes. California requires every LLC to designate a registered agent with a physical street address in California. The registered agent receives legal documents, tax notices, and official correspondence on behalf of your LLC. You can serve as your own registered agent, but this puts your home address on public record and requires you to be available during business hours. Most owners use a registered agent service ($99-$199/year) for privacy and convenience.
Does California require an operating agreement for LLCs?
California does not legally require an operating agreement, but you should absolutely have one. An operating agreement defines ownership percentages, member responsibilities, profit distribution, and procedures for adding or removing members. Most banks will require one when you open a business account, and without one, your LLC is governed by default state rules that may not match your intentions.
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