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How to Start an LLC in California

What to know before you file in California, plus the fee and the steps.

Things to Know Before You Start an LLC in California

California charges $70 up front and charges one of the steepest ongoing state fees anywhere after that ($820). California's annual fee is driven mostly by its minimum franchise tax, which applies to LLCs doing business in the state regardless of profit, on top of the filing fee shown above. None of that changes the basic paperwork California requires; it just changes what you pay and when.

California LLC Formation Overview

The state document you file is called the Articles of Organization in California, and it costs $70 to submit, which is a fairly ordinary, middle-of-the-road filing fee. Most filers also budget for a registered-agent service if they do not want to list a personal address on the public record for their California LLC.

California LLC Details

Filing document: Articles of Organization. State filing fee: $70. Recurring report fee: $820, based on what California currently publishes for 2026. Confirm the exact figure with the California Secretary of State before you file, since these amounts are set by the state and do change.

Steps to Form an LLC in California

  1. Verify your chosen name is free with California's Secretary of State and fits California's LLC naming rules.
  2. Line up a registered agent who maintains a real street address inside California.
  3. File the Articles of Organization and pay California the $70 fee.
  4. Put together an operating agreement for the California LLC covering ownership, management, and what happens if a member leaves.
  5. Apply directly to the IRS for a free EIN once California approves the filing; skip anyone charging for this step.
  6. Open a separate business bank account for the California LLC before you take your first dollar of revenue.

The Short Answer on California LLC Costs

Between the $70 filing fee and California's recurring report fee, most people can estimate their full first-year cost in a couple of minutes. Use the LLC cost calculator to check your full formation and first-year cost, and the LLC tax calculator to run your profit through the tax calculator once your California LLC is generating real profit.

Related Reading for California Business Owners

California LLC FAQs

Is an LLC automatically taxed differently than a sole proprietorship in California?

No. By default, a California LLC is taxed the same way a sole proprietorship or partnership would be. Any tax savings for a California LLC come from electing S-corp status once profit is high enough, which you can check with the LLC tax calculator.

How long does it take California to process an LLC filing?

Processing time depends on California's current workload and whether you file online or by mail; the California Secretary of State's site lists current turnaround times, since they change throughout the year.

What happens if I never file an operating agreement in California?

California does not require you to file an operating agreement with the state, but skipping one leaves your LLC governed by California's default LLC statute, which may not match how you actually want to run the business.

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

California charges $70 to file the Articles of Organization, which is a fairly ordinary, middle-of-the-road filing fee. After that, California charges one of the steepest ongoing state fees anywhere; use the LLC cost calculator for your full first-year number.

Beyond California: the 7-step national walkthrough that applies no matter which state you file in. California's fees are current for 2026; always verify with the California Secretary of State before you file.
Priya Raman
About the author
Priya Raman

Contributing Writer, Policy & Regulation, Encore Editorial

Priya covers tax, regulation, and compliance: the rules that decide what you can and cannot do, usually filed in an obscure subsection that most people skip. She reads federal register notices in her spare time and is at peace with that being unusual.