How to Start an LLC in California: Step-by-Step (2026)
How to start an LLC in California in 2026: name search, registered agent, Articles of Organization, the $800 tax, and Statement of Information.
If you're launching a company in the Golden State, forming a limited liability company is usually the simplest way to separate your personal assets from your business. This guide walks through exactly how to start an LLC in California in 2026 - every form, fee, and deadline - so you can file with confidence and avoid the mistakes that trip up first-time founders.
The short answer: you'll search for an available name, appoint a registered agent, file the Articles of Organization online for $70, submit a Statement of Information within 90 days, and plan for California's $800 annual franchise tax. Below is the full breakdown.
What You Need Before You File
California LLC formation is handled almost entirely online through the Secretary of State's bizfile Online portal. Paper filings are no longer accepted for most documents, so everything below assumes you're filing electronically.
Before you start, have these ready:
- A business name that isn't already taken
- A California street address for your registered agent
- Names and addresses of the LLC's members or managers
- A payment method for the $70 filing fee
If you're still deciding whether an LLC is the right structure at all, it's worth reviewing what an LLC is and comparing it against a sole proprietorship before you commit. For most small operators, the liability protection is the deciding factor.
Step 1: Choose and Search Your LLC Name
Your name must include "Limited Liability Company" or an abbreviation like "LLC" or "L.L.C." It also has to be distinguishable from every other entity already registered in California.
Run your proposed name through the Secretary of State's business search tool before doing anything else. If the name is available and you're not ready to file yet, you can reserve it for 60 days for a small fee. Also check that a matching domain and social handle are free - there's no point locking in a legal name you can't use for your website.
Step 2: Appoint a Registered Agent (Agent for Service of Process)
California calls this role the "agent for service of process." This is the person or company that receives legal documents and official state mail on behalf of your LLC.
Your agent can be an individual California resident (including yourself) or a registered corporate agent. The one hard requirement: they must have a physical California street address - no P.O. boxes - and be available during business hours. If you'd rather keep your home address off public records or you operate out of state, a commercial registered agent service handles this for a modest annual fee.
Step 3: File the Articles of Organization (Form LLC-1)
This is the document that legally creates your LLC. File Form LLC-1, Articles of Organization, through bizfile Online.
- Filing fee: $70
- Where: California Secretary of State, bizfile Online
- Processing: Online filings are typically processed within a few business days
You'll provide your LLC name, business address, registered agent details, and whether the company is member-managed or manager-managed. Once the state approves it, your LLC officially exists. This is the same core step in any state's LLC process - California just adds a few extra compliance layers afterward.
Step 4: Create an Operating Agreement
California law requires every LLC to have an operating agreement, though you don't file it with the state. It can be written or oral, but you should always put it in writing.
This internal document spells out ownership percentages, how profits are split, voting rights, and what happens if a member leaves. Even single-member LLCs benefit: a signed operating agreement reinforces the legal separation between you and your business, which is exactly the protection you formed the LLC to get.
Step 5: Get an EIN from the IRS
An Employer Identification Number is your business's federal tax ID. You'll need it to open a business bank account, hire employees, and file taxes.
Apply directly and for free on the IRS website - the online application issues your number immediately. Never pay a third party for something the IRS provides at no cost. Once you have it, learning how to get an EIN number end to end takes about ten minutes.
Step 6: File Your Statement of Information (Form LLC-12)
Within 90 days of forming your LLC, you must file an initial Statement of Information (Form LLC-12) with the Secretary of State. The fee is $20, and after the first filing you renew it every two years.
Missing this deadline triggers penalties and can lead to your LLC being suspended, so calendar it the moment your Articles are approved. According to the California Secretary of State, this filing keeps your agent and address information current on the public record.
Step 7: Understand the $800 Annual Franchise Tax
Here's the part that surprises many new owners: California charges every LLC a minimum $800 annual franchise tax, regardless of income or profit.
A first-year exemption used to exist under Assembly Bill 85, but that waiver expired at the end of 2023. Per California's Franchise Tax Board, LLCs formed in 2024 and later owe the $800 in their first year too. The first payment is due by the 15th day of the 4th month after formation; in subsequent years it's due April 15 for calendar-year LLCs.
If your LLC earns $250,000 or more in California gross receipts, you'll also owe an additional graduated fee on top of the $800 - $900 at the lowest tier, scaling up with revenue. Budget for this before it catches you off guard.
Step 8: Handle Licenses, Permits, and Banking
Forming the LLC is separate from getting permission to operate. Most California cities require a local business license or tax certificate, and some industries need state-level permits. Our guide to getting a business license in California covers the city-by-city variation.
Finally, open a dedicated business bank account. Mixing personal and business money is one of the fastest ways to undermine the liability shield your LLC provides.
Can You Start a California LLC Yourself, or Should You Use a Service?
You can absolutely start an LLC in California yourself. Every step in this guide - the name search, the Articles of Organization, the Statement of Information, and the franchise tax - runs through official state and federal portals that any founder can use directly, with no lawyer or filing company required. Doing it yourself keeps your cost to the roughly $890 in mandatory first-year fees and nothing more.
The trade-off is time and attention to detail. If you'd rather not track the 90-day Statement of Information deadline, keep your home address off the public record, or handle the paperwork yourself, a formation service or registered agent service will do the filing and monitor deadlines for an annual fee. Neither path changes the state's requirements - the only real difference is whether you or a provider does the clicking. For a single-member LLC with a simple structure, the DIY route is usually the better value; multi-member setups or founders with complex ownership often find the extra support worth paying for.
What Does It All Cost?
Here's the realistic first-year math for a straightforward California LLC:
| Item | Cost |
|---|---|
| Articles of Organization (LLC-1) | $70 |
| Statement of Information (LLC-12) | $20 |
| Minimum franchise tax | $800 |
| First-year total | ~$890 |
Registered agent services, name reservations, or expedited processing add to that. For a state-by-state comparison, see our breakdown of how much it costs to start an LLC.
Frequently Asked Questions
How long does it take to form an LLC in California? Online filings through bizfile are usually processed within a few business days, though timelines fluctuate with state volume.
Can I be my own registered agent? Yes - any California resident over 18 with a physical in-state address can serve as the agent for service of process, including you.
Do I have to pay the $800 tax in my first year? Yes. The first-year exemption expired after 2023, so LLCs formed in 2024 or later owe it from year one.
The Bottom Line
Starting a business in California comes down to eight concrete steps: name it, appoint an agent, file the Articles of Organization, write an operating agreement, get an EIN, file your Statement of Information, plan for the $800 tax, and secure your licenses and bank account. None of them are hard on their own - the trick is hitting the 90-day and franchise-tax deadlines so your new company stays in good standing.
Ready to move forward? Start with a quick name search on the Secretary of State's site, and you'll have the foundation of your California LLC in place before the week is out.
Sources: California Secretary of State - bizfile Online, California Franchise Tax Board - LLC, IRS - Apply for an EIN.