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How to Start an LLC in California

Cost, fees and steps to form your California LLC.

Forming an LLC in California costs a one-time state filing fee of $70, and the state charges an annual report fee of about $820. Here is what to expect and how to do it.

California LLC cost

The Articles of Organization filing fee is $70, and ongoing you'll pay about $820 per year. Add an optional registered-agent service (~$125/yr) if you want privacy or lack an in-state address. Your EIN from the IRS is free. See your full first-year total in the LLC cost calculator.

Steps to start an LLC in California

  1. Choose a name that meets California rules and is available with the Secretary of State.
  2. Appoint a registered agent with a California address.
  3. File the Articles of Organization and pay the $70 fee.
  4. Write an operating agreement.
  5. Get a free EIN from the IRS.
  6. Open a business bank account and stay compliant.

Does an LLC save you tax in California?

By default no — an LLC is taxed like a sole proprietor. Savings can come from an S-corp election once profit is high enough; check it in the LLC vs sole proprietor calculator and estimate your bill with the LLC tax calculator.

Full walkthrough: the 7 steps to start an LLC. Fees change — confirm current amounts with the California Secretary of State.