How to form an LLC in California (2026)

This page is for a person who lives in California, will do the work from California, and is choosing between remaining a sole proprietor and filing a domestic California LLC. It is a filing walkthrough, not a recommendation that every 1099 earner needs an LLC. Compare the structures on LLC vs sole proprietorship.

Formation Lane is not forming a California LLC. A Georgia operator who lives and works in Georgia should not treat this page as a reason to file in California.

Short version for 2026: file Articles of Organization (Form LLC-1) on bizfileOnline.sos.ca.gov, expect $70, keep a California street agent for service of process — the LLC cannot be its own agent — and skip any newspaper “publication” add-on. Then calendar two different things: the Secretary of State’s $20 Statement of Information (within 90 days, then every two years) and the Franchise Tax Board’s $800 annual tax. There is no SOS annual report and no first-year tax holiday for a 2026 formation.

Do I pay California’s $800 LLC tax if I make no money?

Yes. Every LLC organized or registered in California owes the Franchise Tax Board’s $800 annual tax (the minimum franchise tax) each year, even with $0 revenue or no business activity, until the LLC is cancelled. The AB 85 first-year exemption covered only LLCs formed in 2021 through 2023, so a 2026 LLC owes it from year one. Source: FTB — Limited liability company.

Should I wait to form a California LLC until I have customers?

Often, yes — if your risk is low. Staying a sole proprietor costs nothing extra: business income goes on your personal return. An LLC costs about $890 in year one ($70 filing, $20 Statement of Information, $800 FTB tax) and, in return, keeps business debts and claims separate from personal assets. That protection matters once you sign contracts, take a lease, or do work that could draw a claim. Timing: the first $800 is due by the 15th day of the 4th month after filing, and each later year’s by the 15th day of the 4th month (April 15 for a calendar year), so an LLC filed in November pays twice within about five months. FTB exempts a first tax year of 15 days or less with no business conducted — for a calendar-year LLC, filed on or after 17 December. Source: FTB Pub. 3556.

How much does it cost to form an LLC in California?

The Secretary of State charges $70 to file Articles of Organization (Form LLC-1); a certified copy is an optional $5. Within 90 days you also file a $20 Statement of Information. The larger cost is the Franchise Tax Board’s $800 annual tax, which a 2026 formation owes from its first year.

Fees re-checked on the Secretary of State’s California LLC fee table, Form LLC-1, and the Franchise Tax Board’s LLC page on 14 October 2026. This page does not quote expedite or preclearance fees; the Secretary of State lists those separately under service options. If bizfile shows extra line items at checkout, pay what the state shows and keep the receipt.

How long does a California LLC take?

The Secretary of State’s California LLC forms page lists 5 days or less for online submissions on bizfile and 10+ days for PDF (paper) forms. All submissions are reviewed in the order received, with online submissions given priority. Paid expedite options are listed separately under the Secretary of State’s service options.

The clock that matters after approval is the Franchise Tax Board’s, not the Secretary of State’s. The first $800 annual tax is due by the 15th day of the 4th month after the filing date, counting the filing month as month one. FTB’s own example: an LLC registered on 18 June owes its first payment by 15 September.

How do I file Articles of Organization on bizfile?

Go to bizfileOnline.sos.ca.gov, log in, select Register a Business under the Business Entities tile, choose Articles of Organization – CA LLC, and follow the prompts. Have the LLC name, a principal-office street address, an agent for service of process, and the management choice ready, then pay the $70 fee. Online submissions get priority over paper.

Form LLC-1 (REV 11/2023; checked 14 October 2026) is the checklist bizfile walks through:

• A distinguishable LLC name that includes an LLC identifier such as “LLC” or “L.L.C.” — the form says “LLC” will be added if it is left off.
• The initial street address of the principal office. Do not enter a P.O. box on that line.
• An initial mailing address, if different.
• An agent for service of process: a California individual with a California street address, or a registered corporate agent (details in the next section).
• Management by one manager, more than one manager, or all members.
• The standard purpose statement, which may not be altered, and an organizer signature. No notarization line appears on the form.

1. Confirm you live and work in California. Use this path only if you live in California and will do the work from California. A Georgia operator should not treat California filing as a default upgrade.
2. Gather Form LLC-1 information. Have a distinguishable LLC name with an LLC identifier, a principal-office street address (not a P.O. box on that line), a mailing address if different, a California agent for service of process (the LLC cannot be its own agent), the management choice, and an organizer signature.
3. File Articles of Organization on bizfile. Go to bizfileOnline.sos.ca.gov, log in, select Register a Business under the Business Entities tile, choose Articles of Organization – CA LLC, and follow the prompts. A paper Form LLC-1 with the submission cover sheet is still accepted, but online submissions get priority.
4. Pay the $70 filing fee. Pay the $70 Articles of Organization fee printed on Form LLC-1 and the Secretary of State fee table. A certified copy is an optional $5. Keep the receipt.
5. Get an EIN after the articles are filed. After the Secretary of State files the Articles of Organization, obtain an Employer Identification Number free on IRS.gov. Then calendar the $20 Statement of Information within 90 days and the FTB $800 annual tax.

Paper is still an option. The Secretary of State’s fee table lists Form LLC-1 as a PDF beside the bizfile link, and the form ships with a submission cover sheet: mail it with a check or money order to P.O. Box 944260, Sacramento, CA 94244-2600, or deliver it in person for a $15 special handling fee. Those are the state’s addresses, not Formation Lane’s. Processing dates are published on the Secretary of State’s site; this page does not quote an SLA.

California’s entity-types page says an operating agreement among the members is required. It is kept where the LLC’s records are, not filed with the Secretary of State. Basics: LLC operating agreement basics.

Do I need a California agent for service of process with a street address?

Yes. Form LLC-1 needs an agent for service of process: a California resident individual at a California street address (no P.O. box), or a registered 1505 corporate agent. The Secretary of State says a business entity cannot act as its own agent, and the agent’s name and street address are public record.

California says “agent for service of process” where most states say “registered agent.” A corporate agent must be active, in good standing, and have a current 1505 certificate on file, and you need its approval before naming it. If the agent changes or resigns, file a new Statement of Information. DIY versus commercial tradeoffs: Registered agent basics for a new LLC.

Does a California LLC owe the $800 annual tax or file a Statement of Information every year?

Both, on different calendars. The Franchise Tax Board’s $800 annual tax is due every year, with the first payment by the 15th day of the 4th month after SOS filing (FTB 3522). The Secretary of State’s $20 Statement of Information is due within 90 days of registration, then every two years — not every year.

FTB says the $800 tax is due even if the LLC is not conducting business, until the LLC is cancelled. After year one, it is due by the 15th day of the 4th month of each taxable year, and the LLC files Form 568. The first-year exemption covered only tax years beginning in 2021 through 2023, so a 2026 formation owes it from the start. If total California income is $250,000 or more, FTB also charges an LLC fee — $900, $2,500, $6,000, or $11,790 by income band on FTB’s page — estimated and paid by the 15th day of the 6th month on FTB 3536. This page does not compute anyone’s tax.

California has no SOS annual report; the Statement of Information is the recurring Secretary of State filing. The Secretary of State’s FAQs say LLCs file every two years in the month of registration, in odd or even years depending on the year of registration, and the Secretary of State sends a reminder about three months before. Missing it brings a $250 SOS penalty that FTB collects. This is not a Texas-style franchise-tax report: California’s yearly money goes to FTB, and the SOS filing is a $20 update every two years. Cross-state comparison: LLC annual report and annual registration.

Put each date in a calendar the day the state accepts your filing. The free LLC deadline tracker lists the FTB tax date and the Statement of Information schedule for California, and every other state, without signing up for anything.

Do I get an EIN before or after the California LLC?

After. The IRS tells applicants to form the state entity first, so apply for the EIN once the Secretary of State has filed the Articles of Organization. The application on IRS.gov is free. Use the EIN to open a separate business account so LLC money stays out of your personal checking from day one.

Walk through it on Get an EIN after the state entity exists. Then park operating cash and, if the work calls for it, open a brokerage: First business checking account and First brokerage — and which ones pay sites like this.

Filing with the Secretary of State does not get you a seller’s permit, an employer account, or a city business license. CalGOLD is the state’s own pointer for licenses and permits; this page does not list them.

California LLC FAQ

How much does it cost to form an LLC in California?

The Secretary of State charges $70 to file Articles of Organization (Form LLC-1); a certified copy is an optional $5. Within 90 days you also file a $20 Statement of Information. The larger cost is the Franchise Tax Board’s $800 annual tax, which a 2026 formation owes from its first year.

How long does a California LLC take?

The Secretary of State’s California LLC forms page lists 5 days or less for online submissions on bizfile and 10+ days for PDF (paper) forms. All submissions are reviewed in the order received, with online submissions given priority. Paid expedite options are listed separately under the Secretary of State’s service options.

How do I file Articles of Organization on bizfile?

Go to bizfileOnline.sos.ca.gov, log in, select Register a Business under the Business Entities tile, choose Articles of Organization – CA LLC, and follow the prompts. Have the LLC name, a principal-office street address, an agent for service of process, and the management choice ready, then pay the $70 fee. Online submissions get priority over paper.

Do I need a California agent for service of process with a street address?

Yes. Form LLC-1 needs an agent for service of process: a California resident individual at a California street address (no P.O. box), or a registered 1505 corporate agent. The Secretary of State says a business entity cannot act as its own agent, and the agent’s name and street address are public record. More: Registered agent basics for a new LLC.

Does a California LLC owe the $800 annual tax or file a Statement of Information every year?

Both, on different calendars. The Franchise Tax Board’s $800 annual tax is due every year, with the first payment by the 15th day of the 4th month after SOS filing (FTB 3522). The Secretary of State’s $20 Statement of Information is due within 90 days of registration, then every two years — not every year.

What dates should I put on the calendar after a California LLC is filed?

Three: the $800 FTB annual tax by the 15th day of the 4th month after the Secretary of State files your articles (FTB’s example: registered 18 June, due 15 September), the $20 Statement of Information within 90 days, and the next Statement of Information every two years in your registration month. The free LLC deadline tracker builds those dates from your state and formation date.

Do I get an EIN before or after the California LLC?

After. The IRS tells applicants to form the state entity first, so apply for the EIN once the Secretary of State has filed the Articles of Organization. The application on IRS.gov is free. Walkthrough: Get an EIN after the state entity exists. Then park operating cash in a dedicated account — see First business checking account.

Is there a first-year exemption from California’s $800 LLC annual tax?

Not for a 2026 formation. The Franchise Tax Board’s first-year exemption covered only tax years beginning on or after 1 January 2021 and before 1 January 2024. Today every LLC organized or doing business in California pays $800 a year until it cancels. FTB separately notes that an LLC cancelled within one year of organizing with the short-form cancellation (SOS Form LLC-4/8) is not subject to the first-year tax.

Does a California LLC need newspaper publication?

No newspaper-publication step appears on the Secretary of State’s California LLC forms table or on Form LLC-1. Skip any “California LLC publication” add-on that is not part of the bizfile filing. New York LLCs do publish under a different statute — see How to form an LLC in New York.

Should I form in Wyoming or Delaware if I live and work in California?

For a one-state operator who lives and works in California, home-state (domestic California) filing is the honest default. A Wyoming or Delaware LLC doing business in California still registers with the Secretary of State, keeps a California agent, files Statements of Information, and owes the FTB $800 annual tax — plus the formation state’s agent and report. Overview: Foreign LLC and certificate of authority.

What this page does not cover

• Professional LLCs, series LLCs, conversions, or registration of an out-of-state company (see Foreign LLC and certificate of authority).
• City business licenses, seller’s permits, or employment accounts.
• Whether an S corporation election is worth the payroll. That is a CPA conversation after there is real net income.
• Any promise that an LLC prevents a personal guarantee on a bank account or a business card. It usually does not.
• Voluntary dissolution, termination, or cancellation — see Dissolve or cancel an LLC.
• Telling a Georgia operator to file California as a sophistication upgrade.
• Expedite and preclearance fees, which the Secretary of State lists separately from the LLC fee table.