CA · State authority guide

Form an LLC in California.

Largest economy in the US. Highest recurring cost.

California has the largest state economy in the US and the deepest talent pool for tech. It also has the highest LLC recurring costs: an $800 minimum franchise tax due every year, plus a gross-receipts fee at higher revenue.

$75

State filing fee

5-10 business days

Processing time

$800 min franchise tax + $20 SOI

Annual cost

$800 minimum every year, plus tiered gross receipts

Franchise tax

Should you form in California?

Pros

Largest state economy, deepest tech talent pool
Home to top VC firms and universities
Access to CA-based customers, partners, employees
Strong consumer protections

Cons

$800 minimum franchise tax every year, even at $0 revenue
Additional gross-receipts fee at $250K+ revenue
Slowest state filing system in the US (5-10 days)
Even foreign-formed LLCs doing CA business owe the $800

Best for

→Tech startups based physically in CA
→Businesses with CA employees or physical presence
→Founders who cannot practically form elsewhere

How to form your California LLC.

Six steps. We handle all six.

1
Choose a unique name
Ends in LLC. Checked with the California Secretary of State.
2
Appoint a registered agent
Must have a California physical address. Our in-house CA RA is included.
3
File Articles of Organization (LLC-1)
Filed with SOS. $75 state fee. Processing 5-10 business days.
4
File Statement of Information (LLC-12)
Due within 90 days of formation, and every 2 years after. $20.
5
Get your EIN
IRS EIN in 24 hours.
6
File your BOI
FinCEN filing within 30 days.

California vs other states

Compare to

Delaware

Delaware if you can operate outside CA. California if your business is physically here.

Read Delaware guide

Compare to

Wyoming

Wyoming for holding companies. California for operating tech businesses based in the state.

Read Wyoming guide

California LLC FAQ

Can I skip California by forming in Wyoming?+

Only if you have no California nexus (no employees, office, or customer base in CA). If you do CA business, you owe the $800 anyway as a foreign LLC. Don't try to arbitrage.

When is the $800 due?+

For year 1, it's waived for LLCs formed after 2021. From year 2 on, it's due by the 15th day of the 4th month of your tax year (April 15 for calendar-year LLCs).

Start your California LLC today.

We file your Articles, secure your RA, deliver your EIN, and get you a US bank in one go.