Start Your California LLC in the Golden State

California LLC Formation Costs

California LLCs require a $70 state filing fee for Articles of Organization, plus an $800 franchise tax due in the first year regardless of revenue generation. The Statement of Information filing costs $20 and must be submitted within 90 days of formation. Your total state fees reach $890 in the first year. Additional expenses include optional formation service fees ($0-$299), registered agent services ($99-$299/year), and EIN assistance if needed ($99+).

California’s $800 annual franchise tax applies to all LLCs operating in the state, regardless of revenue generation. This separate assessment from income taxes goes directly to the California Franchise Tax Board. Payment deadlines fall on the 15th day of the 4th month after formation and annually thereafter.

California LLCs must file Form LLC-12 (Statement of Information) within 90 days of formation to avoid $250 penalties. This $20 filing includes your LLC’s management structure and principal office information. Subsequent filings occur biennially to maintain current business records with the state.

Formation Timeline

California processes LLC formations within 5-7 business days for standard filings. Expedited 24-hour processing costs an additional $30 and guarantees next-business-day completion. Same-day processing is available at Secretary of State offices in Sacramento and Los Angeles, with 4-hour rush service for in-person filings. Online submissions through the bizfile system typically process faster than mail filings.

Registered Agent Requirements

California law mandates that all LLCs maintain a registered agent with a California street address available during business hours for legal document service. You can fulfill this role personally if you maintain a California address, or engage professional services for $99-$299 annually to ensure privacy and reliability.

Ongoing Compliance Requirements

California LLCs face several annual obligations including the $800 franchise tax due by the 15th day of the 4th month each year. Statement of Information filings occur every two years at $20 each. Form 568 annual tax returns are mandatory, with additional LLC fees applied to entities exceeding $250,000 in gross receipts. Maintain continuous registered agent service and renew all required business licenses as scheduled.

Business Climate and Advantages

California’s economic powerhouse status as the world’s 5th largest economy provides unmatched access to venture capital, technological innovation, and global markets. Silicon Valley’s ecosystem offers networking opportunities and talent pools unrivaled elsewhere. Strong legal frameworks protect LLC structures while diverse industries from entertainment to agriculture create opportunities across all sectors. The state’s infrastructure, ports, and international connections facilitate business growth despite higher operating costs.

Operating Agreement Guidelines

While California only requires operating agreements for multi-member LLCs, single-member entities benefit significantly from creating one. Operating agreements define ownership structures, profit distribution, management procedures, and voting rights. This documentation protects limited liability status, prevents future disputes, and often satisfies banking and investor requirements for business account opening and funding.

Key Industry Sectors

California’s diverse economy spans technology leadership in Silicon Valley, entertainment production in Hollywood, and agricultural dominance in the Central Valley. Aerospace and defense manufacturing, biotechnology and pharmaceuticals, renewable energy development, and international trade through major ports drive economic growth. Tourism, real estate, and financial services complement traditional industries while emerging sectors like cannabis, artificial intelligence, and clean technology create new opportunities for innovative businesses across the state.