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How to start a business in California

The fees, filing links and deadlines for forming and registering a business in California, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $70
LLC, first year (state fees): $890
Corporation filing fee: $100
Annual report: $20
DBA filed with: County
General state license: No
Newspaper notice: No

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

To form an LLC, file Articles of Organization (Form LLC-1) with the California Secretary of State, Business Programs Division (Business Entities) for $70 (checked Oct 24, 2026). You can file online. A corporation files Articles of Incorporation – General Stock (Form ARTS-GS) for $100 (checked Oct 24, 2026). That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in California?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax permits are listed separately.

State fee	Cost	When	Checked
Articles of Organization (Form LLC-1), Secretary of State	$70	at filing	Oct 24, 2026
Initial Statement of Information (Form LLC-12)	$20	within 90 days of filing	Oct 24, 2026
Franchise Tax Board annual LLC tax (first year)	$800	by the 15th day of the 4th month after filing	Oct 24, 2026

First-year total: $890 in state fees. Formation $70 plus the $20 initial Statement of Information due within 90 days and the $800 Franchise Tax Board tax due by the 15th day of the 4th month after filing. Excludes local city/county licenses, a county DBA, registered agent services, and the LLC fee that starts at $250,000 of California income.

After the first year: $800 Franchise Tax Board tax every year (due the 15th day of the 4th month of the tax year), plus a $20 Statement of Information every two years. Add the LLC fee ($900 to $11,790) once California income reaches $250,000.

Fees that apply only in some cases

State fee	Cost	When	Checked
Franchise Tax Board LLC fee If total California income is $250,000 or more ($900 to $11,790 by income tier)	$900	estimate due by the 15th day of the 6th month of the tax year	Oct 24, 2026
Fictitious business name statement (county) If you operate under a name other than the LLC's legal name; fee varies by county (Los Angeles County: $26), plus newspaper publication for four weeks	Note Fee and publication cost vary by county and newspaper.	before using the name; publish once a week for four weeks after filing	Oct 24, 2026
Seller's permit (CDTFA) If you sell or lease taxable goods; a security deposit is sometimes required	$0	before you start selling	Oct 24, 2026
EDD employer payroll tax registration Once you pay more than $100 in wages in a calendar quarter	$0 No EDD page reviewed states a registration fee; none is listed.	within 15 days of crossing the threshold	Oct 24, 2026
In-person paper filing handling fee Only if you file paper forms in person instead of online	$15	at filing	Oct 24, 2026

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in California?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the county (checked Oct 24, 2026) No single statewide fee; each county sets its own. Los Angeles County's $26 is an example only. Counties differ on when publication must start (Los Angeles: within 30 days of filing; San Joaquin: within 45 days)..

How to file a DBA

Does California require an annual report?

Yes. The fee is $20 (checked Oct 24, 2026). Statement of Information within 90 days of formation, then every two years (LLC). Stock corporations file every year for $25.

Initial report: Yes. The fee is $20 (checked Oct 24, 2026). Within 90 days of formation (LLC Statement of Information; this is the first Statement of Information, the same filing as annual_report).

Does California have a franchise or privilege tax?

Every LLC owes the Franchise Tax Board an $800 annual tax each year, including its first year; the first-year exemption only covered tax years beginning 2021 through 2023. The first payment is due by the 15th day of the 4th month after the LLC files with the Secretary of State. An extra LLC fee applies once total California income reaches $250,000: $900 ($250,000-$499,999), $2,500 ($500,000-$999,999), $6,000 ($1,000,000-$4,999,999), or $11,790 ($5,000,000 or more). Corporations pay at least an $800 minimum franchise tax, but corporations formed on or after January 1, 2020 do not owe it in their first taxable year. A 2026 bill to cut the LLC tax to $600 (SB 347) did not pass.

How do I register for state taxes in California?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does California require a general business license?

No. California doesn’t issue one general business license; what you need depends on your activity and where you operate.

CalGold lists the permits a business type needs and who issues them, including city and county requirements; it does not issue permits itself. A seller's permit from CDTFA is free, though CDTFA sometimes requires a security deposit. The CDTFA link is for sales tax only. Employers register separately with EDD within 15 days of paying more than $100 in wages in a calendar quarter. The Secretary of State tells founders to check zoning, licensing and permit rules with their city and county. No general state business license was found: the Secretary of State points founders to CalGold and the Department of Consumer Affairs for licenses, which come from state industry agencies, counties and cities.

What local licenses will I need in California?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Los Angeles (city)
Office of Finance page on getting the City's Business Tax Registration Certificate (BTRC), with registration online or in person; a temporary certificate or number comes first and the permanent one is mailed later. The page states no fee.

When do I need workers’ comp in California?

1 or more employees.

The Division of Workers' Compensation says California law requires employers to have workers' compensation insurance even if they have just one employee. Failing to have coverage is a criminal offense. A sole proprietor may choose to cover themselves, but it must be stated in the policy. Corporate officers and directors must be covered unless they fully own the corporation and elect to be excluded. The state's pages reviewed do not say how LLC members or partners are treated.

What else should I know about starting a business in California?

Stock corporations file a Statement of Information every year for $25, not every two years. An LLC's first $800 tax payment is due by the 15th day of the 4th month after it registers. Filing paper forms in person adds a $15 handling fee; online filing has no handling fee and is the fastest route. The business search is only a preliminary check, and the Secretary of State confirms name availability when you file. Forming an LLC or corporation needs no newspaper publication; publication applies only to a county fictitious business name (DBA).

What to double-check for California?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note Confirm this on the official page before you rely on it.
Note Fictitious business name (DBA) fees are set by each county. Los Angeles County's $26 is an example only.
Note State workers' compensation pages do not say whether LLC members or partners must be covered.
Note Confirm this on the official page before you rely on it.

What to do next

Want help setting up in California? Contact us

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Sources

Official pages checked on October 24, 2026.