Starting an LLC in California is one filing. You file Articles of Organization, Form LLC-1, with the Secretary of State, online, for $70. Three obligations begin that day: a Statement of Information within 90 days for $20, the Franchise Tax Board's $800 annual tax, and the LLC's own yearly return. The first year's state cost is $890. Everything below is from the Secretary of State and the Franchise Tax Board, read in October 2026.
Step 1. Pick a name that passes
The name must contain "LLC" or "L.L.C."; the state adds "LLC" if you leave it off. Search the name first in the Secretary of State's business search, and reserve it online if you are not filing the same day. A name you trade under that differs from the LLC's registered name needs a fictitious business name statement with your county, a separate filing.
Step 2. Choose the agent for service of process
Every California LLC names an agent for service of process on the form. The Secretary of State's definition: an individual who lives in California, with a California street address, or a registered corporate agent. The LLC cannot be its own agent. The agent's name and street address become public record. Many one-person LLCs name the owner, at the owner's own address, and that address is then public. A registered agent company charges a yearly fee for lending its address instead.
Step 3. File Form LLC-1
Form LLC-1 asks for the name, the principal office street address (no PO box), the agent, and how the LLC is managed: one manager, more than one, or all members. The purpose statement is fixed by the state. The fee is $70. File it online at bizfile; the Secretary of State posts its current processing times.
An operating agreement is the LLC's internal rulebook. The Secretary of State says it plainly: operating agreements are kept by the business and are not filed with the state. Write one and keep it with the LLC's records.
Step 4. The three obligations that start on filing day
| Obligation | Agency | Fee | Due |
|---|---|---|---|
| Statement of Information, Form LLC-12 | Secretary of State | $20 | within 90 days of filing, then every two years in the six-month window that ends with your filing month |
| The $800 annual tax, voucher FTB 3522 | Franchise Tax Board | $800 | the 15th day of the 4th month, counting the month you filed as month one; filed June 18, due September 15 |
| Form 568, the LLC's return | Franchise Tax Board | the LLC fee applies from $250,000 of total California income | yearly; the dates are on the $800 page |
The first-year exemption from the $800 ended for LLCs formed in 2024 or later. One exception the Franchise Tax Board lists: an LLC that never did business and is cancelled within 12 months of forming, with the Secretary of State's short-form cancellation, does not owe the first-year $800.
Step 5. The EIN, and then the rest of the list
The IRS issues the Employer Identification Number free, online, at once. An LLC uses it for most registrations, including the City of Los Angeles.
The LLC is the entity. The business still needs what every California business needs: the seller's permit if it sells taxable goods, the city's license, the trade permit, and the fictitious business name if it trades under another name. The full order is on how to start a business in California.
What does an LLC cost in California?
| Item | Year one | Every year after |
|---|---|---|
| Articles of Organization | $70 | none |
| Statement of Information | $20 | $20 every two years |
| The $800 annual tax | $800 | $800 |
| State total | $890 | $800, and $20 every second year |
City licenses, the county's fictitious business name fee and trade permits come on top, and they apply to sole proprietors too. A registered agent company adds its own yearly fee if you use one.
Why the first year catches people
The $800 is due the 15th day of the 4th month counting from the month you filed, not in April. An LLC filed in October owes its first $800 in January and its second the following April, two payments three months apart. The Statement of Information has its own 90-day clock. The operating agreement is nowhere on the state's checklist, so owners skip it, and the LLC runs without its rulebook.
Where Khanna's comes in
If you want help reviewing your small business compliance, email us at daksh@khannasllc.com with your business and your city.
Common questions
Do I need a lawyer to form an LLC in California? The state does not require one. Form LLC-1 is one page, filed online for $70. Whether you should form an LLC at all is a question about liability and how you are taxed, and that one belongs with a lawyer or a CPA.
Can I be my own agent for service of process? Yes, if you live in California and give a California street address. The LLC itself cannot be the agent. Your name and address then become public record.
Do I file the operating agreement? No. The Secretary of State does not take it. Keep it with the LLC's records.
What does the state charge in the first year? $70 to form, $20 for the Statement of Information, $800 in annual tax: $890. The seller's permit and the EIN are free. The city license and the county's fictitious business name fee are separate.
I formed the LLC and changed my mind. An LLC that never did business can file a short-form cancellation within 12 months of forming and owes no first-year $800. After that, cancellation goes through the Secretary of State and the Franchise Tax Board, and the $800 is owed for each year the LLC existed.
General information for California owners as of October 2026. Khanna's is not a law firm or an accounting firm, and this is not legal or tax advice. The main fees and dates above link to the Secretary of State and Franchise Tax Board pages that state them. For your own situation, check with those agencies, a lawyer or a CPA.