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How to Start an LLC in California (2026): Steps, Costs and the $800 Tax

By the Statutia Ledger Desk · Published by Carefree Charters LLC

All state figures checked on the Secretary of State and Franchise Tax Board sites Oct 11, 2026 · General information, not tax or legal advice

Short answer. If you form a California LLC in 2026, the state charges at least $890 in the first year: $70 to file Articles of Organization with the Secretary of State, $20 for the Statement of Information due within 90 days, and $800 in annual LLC tax to the Franchise Tax Board (FTB). The first-year exemption you may have read about covered only LLCs formed in 2021–2023. A new law, SB 122, cuts the first-year tax to $400 for LLCs whose first taxable year begins in 2027, 2028 or 2029, so the year-one minimum then becomes $490. If your launch date is flexible, filing in January 2027 instead of November or December 2026 can mean up to $1,200 less annual tax paid by April 15, 2028 (worked out below; this choice expires once 2027 begins).

A formation service and a registered agent are optional and add to these amounts. Comparing states? See what it costs to start an LLC in each state.

Two agencies, two separate bills

Most confusion about California LLC costs comes from mixing up two government offices.

	Secretary of State (bizfile Online)	Franchise Tax Board
What it does	Keeps the business entity record	Collects the annual LLC tax and LLC fee
What you file or pay	Articles of Organization (Form LLC-1): $70. Statement of Information (Form LLC-12): $20, within 90 days, then every two years	Annual LLC tax: $800 a year (first-year amounts below), plus an LLC fee if total California income is $250,000 or more
If you miss it	$250 penalty for a late Statement of Information, assessed by the FTB, and possible suspension or forfeiture	Penalties and interest; the tax keeps accruing until you cancel the LLC

The FTB says "Every LLC that is doing business or organized in California must pay an annual tax of $800", and that it's owed "even if you are not conducting business". A formation service doesn't pay it for you.

Sources: CA SOS LLC forms and fees ↗ (opens in a new tab); Form LLC-12 ↗ (opens in a new tab); SOS Statements of Information ↗ (opens in a new tab); FTB: Limited liability company ↗ (opens in a new tab) (last updated 03/05/2026). Checked Oct 11, 2026. VERIFIED

The first-year $800: what applies to you

When your LLC's first taxable year begins	First-year annual tax	Rule
2021, 2022 or 2023	$0 (expired)	AB 85 exemption for LLCs that organized or registered "on or after January 1, 2021, and before January 1, 2024"
2024, 2025 or 2026	$800	Standard rule
2027, 2028 or 2029	$400	SB 122: for taxable years beginning "on or after January 1, 2027, and before January 1, 2030", the annual tax is reduced "from $800 to $400 for its first taxable year"
2030 or later	$800 (unless the law changes again)	Standard rule

After the first year, the tax is $800 every year.

When it's due. You have "until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax." The FTB counts the filing month as month one: its example is Articles filed June 18, tax due September 15. Later years are due by the 15th day of the 4th month of the taxable year (April 15 for a calendar-year LLC).

The 15-day rule. An LLC owes no annual tax or fee for a taxable year if both are true: it "did not conduct any business in California during the taxable year", and its "taxable year was 15 days or less". For a calendar-year LLC, that means filing on or after December 17 and doing no business before January 1.

Sources: FTB What's New ↗ (opens in a new tab) (last updated 08/28/2026); FTB 3556 LLC filing information ↗ (opens in a new tab); FTB LLC page ↗ (opens in a new tab). Checked Oct 11, 2026. VERIFIED

Late 2026 or January 2027? Your filing date matters

These worked examples are for a calendar-year LLC that does no California business before it's formed. The due dates follow the FTB rules above. Calculations: Statutia, ESTIMATED from those rules.

You file Articles on	First payment	Second payment	Tax paid by April 2028
November 10, 2026	$800 for 2026, due Feb 15, 2027*	$800 for 2027, due Apr 15, 2027	$2,400 (2026 + 2027 + 2028)
December 1–16, 2026	$800 for 2026, due Mar 15, 2027	$800 for 2027, due Apr 15, 2027	$2,400
December 17–31, 2026, no business until 2027	$0 for the 2026 stub (15-day rule)	2027 tax due Apr 15, 2027: $800 or $400, unconfirmed UNKNOWN	$1,600 or $1,200
January 4, 2027	$400 for 2027 (SB 122), due Apr 15, 2027	$800 for 2028, due Apr 15, 2028*	$1,200

*Feb 15, 2027 is Presidents' Day and Apr 15, 2028 is a Saturday. Check the FTB's calendar for the adjusted date.

What we couldn't confirm. SB 122 applies to an LLC's "first taxable year". If you file December 17–31, 2026, the short 2026 stub may itself count as your first taxable year, even though the 15-day rule exempts it from tax. In that case 2027 would be your second year and the full $800 would apply. No FTB page we read on Oct 11, 2026 answers this. If you plan to rely on it, ask the FTB or a California tax professional first. The certain way to get the $400 is to file on or after January 1, 2027.

Who shouldn't wait. If you need the LLC now (for a lease, a contract, a bank account, or liability protection for work you're already doing), the saving may not be worth the delay. Forming later doesn't change tax you owe personally on business you do before the LLC exists.

Step by step

1. Check your name

Search the name on bizfile Online ↗ (opens in a new tab). The name must include "LLC" or a similar designator under the SOS naming rules.

2. Choose your agent for service of process

California requires the agent to be "an individual who is a resident of this state or a corporation that has complied with Section 1505" (Corp. Code §17701.13(c)). An individual agent needs a California street address. A commercial agent must be a corporation with a current §1505 certificate on file. If you name yourself, your name and address go on the public record.

At the providers we track, a commercial agent costs $125–$249 a year at standard rates (Harbor Compliance is $99 for the first year, then $159). See registered agents ranked by 5-year cost or whether to be your own agent.

Source: Corp. Code §17701.13 ↗ (opens in a new tab). Checked Oct 11, 2026.

3. File Articles of Organization (Form LLC-1): $70

The form says "For fastest service, file online at bizfileOnline.sos.ca.gov". You can also mail it to P.O. Box 944260, Sacramento, CA 94244-2600, or submit it in person (in-person submissions add a $15 special handling fee). A certified copy is an optional $5.

Sources: Form LLC-1 ↗ (opens in a new tab); SOS LLC forms ↗ (opens in a new tab). Checked Oct 11, 2026.

4. Get an EIN (free) and write an operating agreement

The IRS says: "You never have to pay a fee for an EIN." Some formation services charge $70–$99 to apply for you. An operating agreement sets out ownership, voting and what happens if a member leaves. You don't file it with the Secretary of State, but banks often ask for it.

Source: IRS: Get an EIN ↗ (opens in a new tab). Checked Oct 11, 2026.

5. File the Statement of Information (Form LLC-12) within 90 days: $20

The first statement is "due within 90 days of initial registration and every two years thereafter", during a six-month window set by your formation month. "Effective August 1, 2026, web User Access is required for Statement of Information filings", so set up bizfile User Access for your LLC before you file online. Missing the deadline brings a $250 penalty. If something changes between required filings (for example, a new agent), file an updated statement; LLC-12 lists that update as "No Fee".

Sources: Form LLC-12 ↗ (opens in a new tab); SOS Statements of Information ↗ (opens in a new tab). Checked Oct 11, 2026. VERIFIED

6. Pay the FTB

Pay the first-year tax by its due date (see the table above), then $800 by April 15 each year for a calendar-year LLC. If total California income reaches $250,000, you also owe an LLC fee. The FTB says "LLCs must estimate and pay the fee by the 15th day of the 6th month, of the current tax year":

Total California income	LLC fee
$250,000–$499,999	$900
$500,000–$999,999	$2,500
$1,000,000–$4,999,999	$6,000
$5,000,000 or more	$11,790

The annual tax is paid with the LLC Tax Voucher (FTB 3522), or online by bank account (Web Pay) or credit card. The LLC also files an annual return; ask a tax professional which forms apply to your tax classification.

Source: FTB LLC page ↗ (opens in a new tab). Checked Oct 11, 2026. VERIFIED

General information, not tax or legal advice. Statutia is an independent publisher, not the Franchise Tax Board, the Secretary of State or a law firm.

Will a Wyoming or Delaware LLC avoid the $800?

Usually not. The FTB treats an LLC as doing business in California if it is "organized or commercially domiciled in California". For 2025 it also counts an LLC whose California sales exceed $757,070, or whose California property or payroll exceeds $75,707, or where 25% of its total sales, property or payroll is in California. The FTB hasn't posted 2026 thresholds. An out-of-state LLC doing business here must register with the Secretary of State (Form LLC-5, $70) and pay the same $800.

Year one, running the business from California	California LLC	Wyoming LLC registered in California
Formation	$70 (CA)	$100 (WY)
California registration	—	$70 (LLC-5)
Statement of Information	$20	$20
California annual tax (2026 formation)	$800	$800
Registered agents	One (CA)	Two (WY and CA)
State total, before agents	$890	$990

From year two, the Wyoming route also adds Wyoming's annual report license tax (at least $60). ESTIMATED from verified fees. More on this: Wyoming vs Delaware LLC.

Sources: FTB: Doing business in California ↗ (opens in a new tab); SOS foreign LLC forms ↗ (opens in a new tab); Wyoming business fees (rev. June 2026) ↗ (opens in a new tab). Checked Oct 11, 2026.

After year one: what keeps coming

Obligation	Agency	Amount	When
Annual LLC tax	FTB	$800	April 15 each year (calendar year), until you cancel
LLC fee	FTB	$900–$11,790	Only if total California income is $250,000+; by the 15th day of the 6th month
Statement of Information	SOS	$20	Every two years, in your six-month window (User Access required online)
Updated Statement (e.g. a new agent)	SOS	No fee	Whenever information changes
Certificate of Cancellation (closing)	SOS	No fee	When you close; the $800 keeps accruing until you do

Every state's recurring fees: LLC annual fees by state. Got an official-looking letter offering to file your Statement of Information for a fee? Check it with Letter Check first. Private companies mail look-alike notices.

Do it yourself or use a formation service?

Filing yourself costs the state fees only ($890 in year one for a 2026 formation) plus your time, and an agent if you don't serve as your own. A formation service files the LLC-1 for you and usually bundles a registered agent for the first year. Next to an $800 tax, the service fee is a small part of the bill; the agent renewal is the cost that keeps coming.

How we make money: Statutia has no affiliate relationships yet. Every provider link on this page is a plain link that earns us nothing. If that changes, commercial links will be labeled next to the link. Commissions will never change our rankings. Details.

Option	Service cost in year one	Agent after year one	Notes
File yourself on bizfile Online	$0	You, or any agent you hire	Cheapest if you can be your own agent
Northwest Basic	$49 (or $39 on its other price page), first agent year included	$125/yr	Its annual-report page says agent customers are "automatically enrolled" in report filing at $100 + state fee per report (its FAQ says "Not automatically"). In California the recurring report is the $20 Statement of Information, which you can file yourself, so turn this off if you will
Bizee Basic	$0, first agent year included	$149/yr VERIFIED	EIN +$70 and operating agreement +$99 if you add them
ZenBusiness Starter	$0, agent not included: +$199/yr on its plan page ($99 first year advertised on its agent page when you form)	$199/yr	30-day website trial preselected at checkout, then $15/mo

Prices from each provider's own pages: Northwest $49 ↗ (opens in a new tab), Northwest $39 ↗ (opens in a new tab), Northwest annual report ↗ (opens in a new tab), Bizee ↗ (opens in a new tab), ZenBusiness ↗ (opens in a new tab). Checked Oct 11, 2026. Is "$0 formation" really free? See what $0 really costs.

Northwest LLC formation (opens in a new tab) Plain link · we earn $0 · Bizee (opens in a new tab) Plain link · we earn $0 · ZenBusiness Starter (opens in a new tab) Plain link · we earn $0

Compare formation services by 5-year total cost → · File yourself on bizfile Online (official) → ↗ (opens in a new tab)

FAQ

Is the $800 waived in my first year? Not for LLCs formed in 2026. The waiver covered only 2021–2023. For first taxable years beginning in 2027–2029, the first-year tax is $400.

When is my first $800 due? By the 15th day of the 4th month after you file Articles. The filing month counts as month one.

What if I never use the LLC? You still owe $800 a year until you cancel it with the Secretary of State.

What happens if I miss the Statement of Information? A $250 penalty, assessed by the FTB, and possible suspension.

Do I need a bizfile account to file the Statement of Information? For online filings, yes: since August 1, 2026, the SOS requires web User Access for Statement of Information filings.

Can I be my own agent? Yes, if you're a California resident with a California street address. Your address becomes public.

Does forming in Wyoming or Delaware avoid California tax? Not if you're doing business in California. You'd pay that state's fees plus California's $70 registration and the same annual tax.

Do I need to file a BOI report? No. FinCEN says "U.S. companies are exempt from the Beneficial Ownership Information (BOI) reporting requirements" (FinCEN ↗ (opens in a new tab), checked Oct 11, 2026).