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How to Form an LLC in California (2026)

The filing fee for a California LLC is $70, filed through the California Secretary of State. Standard processing takes 5-7 business days (online). This guide walks you through every step, from choosing a name to getting your EIN.

California LLC at a Glance

Filing Fee
$70
Processing Time
5-7 business days (online)
Annual Report
$20/yr
State Income Tax
Yes
$800/year franchise tax (minimum) + 1.5% net income
Filing Office
California Secretary of State
Special Requirements
No special requirements

Best Services for California LLCs

#1 Recommended
ZenBusiness logo

ZenBusiness

$0 + state fees

First-time business owners who want a guided experience. $0 + state fees for California LLC formation.

$0 Starter plan covers formation, registered agent for year one, and operating agreement template
Dashboard guides you through every post-formation step in plain English
Filed our Texas LLC in 12 business days on the free tier — faster than most paid competitors
#2 Runner-Up
Northwest Registered Agent logo

Northwest Registered Agent

$39 + state fees

Privacy-conscious owners and multi-state filers. $39 + state fees for California LLC formation.

$39 includes LLC formation plus a full year of registered agent service — best value combo
Zero upsells during checkout — refreshingly straightforward experience
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Harbor Compliance logo

Harbor Compliance

$399 + state fees

Multi-state businesses and regulated industries. $399 + state fees for California LLC formation.

How to Start an LLC in California: Step by Step

1

Choose a Name for Your California LLC

Your LLC name must be distinguishable from any existing business registered with the California Secretary of State. The name must include "Limited Liability Company," "LLC," or "L.L.C." as a designator.

How to check availability: Search the California Secretary of State's online business database at https://www.sos.ca.gov/. If you're not ready to file yet, most states let you reserve a name for 60-120 days for a small fee.
2

Designate a Registered Agent in California

California requires every LLC to have a registered agent with a physical address in the state. Your registered agent receives legal documents, lawsuits, and official state correspondence on your behalf.

Our recommendation: Use a professional registered agent service for privacy and reliability. ZenBusiness includes registered agent service free for the first year with their formation package.
3

File Articles of Organization with California

Submit your Articles of Organization (sometimes called a Certificate of Formation) to the California Secretary of State. The filing fee is $70, and standard processing takes 5-7 business days (online).

Your articles typically require: LLC name, registered agent name and address, principal office address, organizer name, and whether the LLC is member-managed or manager-managed.

File online or use a service: You can file directly at https://www.sos.ca.gov/, or use a formation service like ZenBusiness ($0 + state fees) to handle it for you.
4

Create an Operating Agreement

While California doesn't legally require an operating agreement, you need one. Banks require it to open a business account, and without one, your LLC defaults to state rules that may not match your intentions.

Get a template: Most formation services include an operating agreement template. ZenBusiness includes one in their formation package. For multi-member LLCs with complex arrangements, consider having an attorney review the agreement.
5

Get an EIN (Employer Identification Number)

An EIN is your LLC's tax ID number, issued by the IRS for free. You need it to open a business bank account, hire employees, and file taxes. Single-member LLCs without employees technically aren't required to have one, but you'll want one anyway for banking and to keep your SSN off business forms.

How to apply: Apply for free at IRS.gov. The online application takes 10 minutes and you get your EIN immediately. Formation services charge $50-$100 to do this for you, which is unnecessary for most US-based applicants.
6

Open a Business Bank Account

Open a dedicated business bank account immediately after formation. Mixing personal and business finances is the number one way owners accidentally pierce their LLC's liability protection. You'll need your Articles of Organization, EIN, operating agreement, and a government-issued ID.

Pro tip: Many banks offer free business checking for new LLCs. Shop around — look at both national banks and local credit unions. Online banks like Mercury, Relay, and Novo also offer solid free options with modern dashboards.

California LLC Cost Breakdown

Here's what you can expect to pay to form and maintain an LLC in California.

Cost Item Amount Frequency Required?
State filing fee (Articles of Organization) $70 One-time Yes
Registered agent service $99-$299/yr Annual Yes
Annual report filing $20 Annual Yes
EIN (Employer Identification Number) Free (IRS) or $50-$100 (service) One-time Recommended
Operating agreement Free (template) or $50-$200 One-time Recommended
Franchise Tax Board minimum tax $800/yr Annual Yes (CA)
Estimated first-year total $240 + $800 franchise tax (with registered agent service)

What Makes California Unique for LLCs

$800 Franchise Tax

California imposes an annual $800 minimum franchise tax on all LLCs, regardless of income. This is due by the 15th day of the 4th month after your LLC is formed, and every year after that by April 15. New LLCs are exempt from this tax in their first year (as of 2024). LLCs with gross receipts over $250,000 also pay an additional annual fee ranging from $900 to $11,790.

Ready to Form Your California LLC?

Skip the paperwork and let ZenBusiness handle your California LLC formation. $0 + state fees + the $70 state filing fee.

4.8/5 (Trustpilot) from verified customers

California LLC: Frequently Asked Questions

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

The state filing fee to form an LLC in California is $70. On top of that, you may need a registered agent service ($99-$199/year), an EIN (free from the IRS), and an operating agreement. California also requires an annual report that costs $20 per year. Most formation services like ZenBusiness charge $0 + state fees for basic formation.

How long does it take to get an LLC in California?

Standard processing through the California Secretary of State takes 5-7 business days (online). You can often speed this up by paying for expedited processing directly with the state or through your formation service. Online filings are typically faster than paper filings. Services like ZenBusiness can help ensure your paperwork is correct the first time, avoiding delays from rejected filings.

Do I need a registered agent for my California LLC?

Yes. California requires every LLC to designate a registered agent with a physical street address in California. The registered agent receives legal documents, tax notices, and official correspondence on behalf of your LLC. You can serve as your own registered agent, but this puts your home address on public record and requires you to be available during business hours. Most owners use a registered agent service ($99-$199/year) for privacy and convenience.

Does California require an operating agreement for LLCs?

California does not legally require an operating agreement, but you should absolutely have one. An operating agreement defines ownership percentages, member responsibilities, profit distribution, and procedures for adding or removing members. Most banks will require one when you open a business account, and without one, your LLC is governed by default state rules that may not match your intentions.

Start Your California LLC Today

Thousands of California entrepreneurs have used ZenBusiness to form their LLCs. Get started in minutes.

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$0 + state fees | 2-3 weeks (standard) processing | 4.8/5 (Trustpilot)

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