A limited liability company, or LLC, is a business entity that sits apart from its owners. The company can sign contracts, hold a bank account, and take on obligations in its own name, while the owners' personal assets stay separate from the company's debts in the ordinary course of business. For founders who want that separation without the formal meeting and share structure of a corporation, the LLC is a practical middle path, and California is a state where the formation steps are clearly laid out by the Secretary of State.
This page covers what California charges, what California requires, and what Sams Business handles when forming a California LLC.
What it costs to form a California LLC
The California Secretary of State charges $70 to file the Articles of Organization, Form LLC-1. That figure is the Secretary of State's published filing fee for the form. The state filing fee is paid by you at cost, with zero markup, and you see the full total before you pay anything. Sams Business package fees sit on top of the state fee: Basic at $0, Standard at $199, and Premium at $299.
California's ongoing state costs are larger than its filing fee, and they are worth knowing before you file. Every California LLC owes the Franchise Tax Board an $800 annual franchise tax, paid with Form FTB 3522, whether or not the LLC earns money. The first year's payment is due on the 15th day of the 4th month after the Secretary of State files the Articles. A Statement of Information, Form LLC-12, is also required: the first one is due within 90 days of formation for a $20 fee, and after that it is filed every two years, not every year. Added together, the first-year state cost is $890: $70 to file, $20 for the first Statement of Information, and $800 in franchise tax. If total California income reaches $250,000 or more, an additional income-based LLC fee can also apply, starting at $900.
What California requires
The Articles of Organization ask for a small set of facts. The LLC name must include a designator such as "Limited Liability Company" or "LLC," and it must be distinguishable from other business names already on file with the Secretary of State. That is why checking the name before filing matters: a name that is too close to an existing entity can be rejected.
Every California LLC must name an agent for service of process with a California street address, available during normal business hours to receive legal documents and official correspondence. The filing also states the LLC's business address, whether the LLC is member-managed or manager-managed, and the agent's details. The filing is made with the California Secretary of State, online through the Secretary of State's bizfile Online portal or by mail.
An operating agreement records ownership percentages, voting, profit and loss splits, and what happens when a member joins or leaves. Standard and Premium packages include an operating agreement.
After formation: two agencies, two calendars
California's ongoing duties run through two different agencies, and they are easy to mix up. The Secretary of State handles the Statement of Information: the first filing within 90 days of formation, then every two years, for $20 each time. Filing late can bring a $250 penalty and, in time, suspension or forfeiture of the LLC's powers.
The Franchise Tax Board handles the money side: the $800 annual franchise tax every year, plus the income-based LLC fee where it applies. Filing the Statement of Information does not pay the tax, and paying the tax does not file the Statement of Information. Standard includes compliance alerts, which help keep both dates from slipping.
Sams Business pricing for a California LLC
Basic ($0 plus the state fee) covers the filing and state registration, with registered agent service free for the first year and virtual mail free for the first month. Standard ($199 plus the state fee) adds EIN assistance, an operating agreement, S-corp election filing where applicable, and compliance alerts. Premium ($299 plus the state fee) adds expedited filing where the state offers it, ready-to-use business contracts, a domain name and business email, and a US business phone number free for the first year.
Dissolution assistance is a separate service with a custom quote, and it is never part of a formation package. Start from the contact page to begin a California LLC filing.
Related California pages
- California S Corporation Formation (not live yet — no link)
- California C Corporation Formation (not live yet — no link)
- California Nonprofit Formation (not live yet — no link)
- California Registered Agent Service (not live yet — no link)
- California Annual Report Filing (not live yet — no link)
- California Assumed Business Name (DBA) (not live yet — no link)
- California Foreign Qualification (not live yet — no link)
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Sams Business is an independent private service and is not affiliated with any government agency, including the California Secretary of State's office.
Not legal or tax advice.