Start a California LLC: $70 + $800 + $20
California is cheap to start and expensive to keep. The $70 filing fee is the smallest number you'll see; the $800 annual tax arrives within months and every year after. Budget the full first year before you file, and pick your formation date on purpose.
| Item | Cost | When |
| Articles of Organization (LLC-1) | $70 | Once |
| Statement of Information (LLC-12) | $20 | Within 90 days, then every 2 years |
| Annual LLC tax (Form 3522) | $800 | 15th day of 4th month, every year |
| LLC fee (Form 3536) | $0–$11,790 | June 15 estimate, if CA receipts ≥ $250k |
| Form 568 return | — | March 15 (multi-member) / April 15 (single-member) |
Step by step
- Choose a name ending in “LLC” or “Limited Liability Company” and check availability on bizfile Online. Some words (bank, insurance, trust) need regulator approval.
- Pick an agent for service of process. You can name yourself at a California street address, or a registered corporate agent if you want to keep your address off the public record.
- File Articles of Organization (LLC-1): $70 on bizfile Online. Online filings are typically processed within a few business days.
- File the Statement of Information (LLC-12): $20 within 90 days. It lists managers or members, the principal address, and the agent. See the SOI guide.
- Write an operating agreement. California requires every LLC to have one (oral agreements count, but put it in writing). It isn't filed with the state.
- Get an EIN from the IRS (free, online for US persons), then open a business bank account.
- Register for other accounts as needed: a seller's permit with CDTFA if you sell taxable goods, an EDD employer account if you hire, and any city business license.
- Pay the first $800 by the 15th day of the 4th month after formation.
No first-year break anymore
LLCs formed between 2021 and 2023 were exempt from the $800 in their first year under AB 85. The waiver was not extended: an LLC formed in 2024 or later owes $800 for its first taxable year, even a short one. (Corporations are different: they have a permanent first-year exemption from the minimum tax.)
Forming late in the year
An LLC's first taxable year runs from formation to December 31. Form on October 1 and the first $800 is due January 15; the second year's $800 is due April 15 — $1,600 in three months for a company that barely operated in its first year. If a late-year launch can wait until January, wait. The exception is the 15-day rule: an LLC whose first taxable year is 15 days or less and which does no business in that period owes no tax for it, so forming between December 17 and 31 and staying inactive until January avoids the first-year $800 entirely.
Should you form in California at all?
If you live and work in California, yes, usually. Forming in Wyoming or Delaware doesn't avoid California's $800; it adds a second state's fees and a foreign registration. Delaware still makes sense for venture-backed C-corps. Model your year-one and five-year totals in the California calculator or the tri-state matrix.