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The filing that creates a California LLC is Articles of Organization, Form LLC-1. It costs $70 and you file it with the Secretary of State on bizfile Online. The state says the online form meets the minimum statutory requirements, and you can attach extra provisions. Everything after that, especially the tax, costs more than the filing. Our California LLC cost guide has the fee table, so this page covers the order of work.
Which name will California accept?
California LLC names must end in Limited Liability Company, LLC or L.L.C. (Ltd. and Co. are also allowed). Search the Secretary of State's records before you commit. See our California business guide and the name availability guide.
A name reservation costs $10 and lasts 60 days. The state does not renew it back to back. If you are ready to file, skip the reservation.
Who is your agent for service of process?
California uses that phrase in place of registered agent. It must be a California resident or a corporation with a current section 1505 certificate, and your LLC cannot be its own agent. The rule is Corporations Code 17701.13. Read the California registered agent page before you file Form LLC-1.
What are the filing steps?
- Pick the name and the agent.
- Open bizfile Online and start the Articles of Organization.
- Pay $70.
- Wait. The state posts dates it is working on for online, in person and mail filings.
- Save the filed articles.
A hand delivered filing can carry a $15 special handling fee.
What happens with the $800?
Every LLC doing business or organized in California owes an annual tax of $800 to the Franchise Tax Board. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State. You pay it with LLC Tax Voucher FTB 3522, by bank account, credit card or mail.
The FTB page still lists a first year waiver. That waiver covered only a closed window of tax years, so plan to pay in year one. If you cancel within one year of organizing, a short form cancellation (SOS Form LLC-4/8) avoids the first year tax.
The tax repeats every year until you cancel, with no pause for a quiet year. An LLC with California income over $250,000 also pays a fee that climbs with income. The LLC files a return on Form 568.
How does the income fee work?
The FTB asks LLCs with California income over $250,000 to estimate and pay a fee by the 15th day of the 6th month of the tax year, using form FTB 3536. The tiers are:
| California income | Fee |
|---|---|
| $250,000 to $499,999 | $900 |
| $500,000 to $999,999 | $2,500 |
| $1,000,000 to $4,999,999 | $6,000 |
| $5,000,000 or more | $11,790 |
Missing the estimate brings penalties and interest.
What do you file every two years?
The Statement of Information. LLCs file it every two years, in the month of registration, and the fee is $20. Missing it brings a $250 penalty. To keep an LLC active, the FTB lists two duties: file the Statement of Information, and file and pay your state income taxes.
What comes after approval?
Draft the operating agreement. California does not file it. The Corporations Code says the operating agreement governs relations among the members and the LLC. See our California operating agreement page and the free template. Get an EIN from the IRS (how to get an EIN) and open a bank account.
If you live outside California but plan to work in it, the same tax applies once the LLC does business in the state. An LLC formed in another state that does business here registers on Form LLC-5, which also costs $70 (foreign LLC registration). Compare neighbours: Oregon, Nevada and Arizona.
Use the start an LLC form when you are ready.
After approval, check the rules in our California business license guide.