Form Your California LLC

• State filing fee: $70 (Articles of Organization)
• Franchise tax: $800 (due in the first year, even with no revenue)
• Statement of Information: $20 (due within 90 days)
• Total state fees: $890 in the first year

The California franchise tax is an $800 annual fee that all LLCs must pay to operate in California. This tax is due in your first year of operation, regardless of whether your LLC generates any revenue. The franchise tax is separate from income taxes and is paid to the California Franchise Tax Board. Payment is due by the 15th day of the 4th month after your LLC is formed.

California requires all LLCs to file a Statement of Information (Form LLC-12) within 90 days of formation. Missing this deadline results in a $250 penalty. After the initial filing, you must file a Statement of Information every two years. The form costs $20 and includes basic information about your LLC's management and principal office address.

If you're conducting business in California, you'll need to pay the $800 franchise tax regardless of where you form your LLC. Forming in Delaware and then registering as a foreign LLC in California means paying fees in both states. Unless you have no physical presence or business operations in California, forming your LLC in California is typically more cost-effective and simpler.

• Standard processing: 5-7 business days
• 24-hour expedited: Next business day (additional $30 fee)
• Same-day processing: Available at Secretary of State offices in Sacramento and Los Angeles
• 4-hour rush: Available for in-person filings with additional fees

Yes, California law requires all LLCs to maintain a registered agent for service of process. Your registered agent must have a California street address (not a P.O. Box) and be available during normal business hours. You can serve as your own registered agent if you have a California address, or hire a professional service for $99-$299 per year.

• Pay the same $800 franchise tax
• Have the same formation requirements
• Provide limited liability protection

• Taxation: Single-member LLCs are taxed as sole proprietorships by default; multi-member LLCs as partnerships
• Operating agreements: More critical for multi-member LLCs to define ownership and management
• Management structure: Multi-member LLCs need clear decision-making processes

• Defines ownership percentages and profit distribution
• Establishes management structure and voting rights
• Protects your limited liability status
• Prevents future disputes among members
• May be required by banks and investors

• Online: Through the IRS website (immediate)
• By fax: 4 business days
• By mail: 4-5 weeks
• Through a service: Same day ($99-$159)

• City business license: Required in most California cities ($50-$500/year)
• State licenses: Required for regulated industries (contractors, healthcare, etc.)
• Seller's permit: Required if selling tangible goods (free from CDTFA)
• Professional licenses: Required for licensed professions (attorneys, CPAs, etc.)
• Home business permit: May be required for home-based businesses

• Franchise tax: $800 due annually by the 15th day of the 4th month
• Statement of Information: $20 every two years
• Annual tax returns: Form 568 for LLCs
• LLC fee: Additional fee for LLCs with gross receipts over $250,000
• Business licenses: Renewal of city and state licenses as required
• Registered agent: Maintain continuous registered agent service

• No citizenship or residency requirements for members
• Must have a California registered agent
• Need an EIN (requires an ITIN if no SSN)
• May have additional tax obligations
• Banking may be more challenging without US presence

California does not currently allow the formation of Series LLCs. If you need multiple entities for liability protection or investment purposes, you must form separate LLCs for each venture. Some states like Delaware and Nevada offer Series LLCs, but they cannot be registered in California as foreign Series LLCs.

The dissolution process protects members from future liability for business debts and obligations.

• S Corporation: May save on self-employment taxes but has more requirements
• C Corporation: Better for raising venture capital but subject to double taxation
• Limited Partnership: For investment structures with passive investors
• Sole Proprietorship: Simplest but no liability protection
• Professional Corporation: Required for certain licensed professions