Question 1

How much does it cost to start an LLC in California?

Accepted Answer

The state filing fee for a California LLC is **$70**. This is a one-time payment to the Secretary of State. If you hire a professional service, you will pay this fee plus their service charge.

Question 2

How long does it take to get an LLC in California?

Accepted Answer

Standard processing time for California is roughly **5-10 business days**. However, this varies by season. Expedited options are often available for an additional fee if you need it faster.

Question 3

Does California require an Annual Report?

Accepted Answer

Yes, most California LLCs must file a **Statement of Information**. It is typically due **Every 2 years**. Failure to file this report can lead to your LLC being dissolved by the state.

Question 4

Is there a minimum tax for California LLCs?

Accepted Answer

Yes. California charges a **$800 minimum annual franchise tax**, even if your business makes $0 in revenue. This is a surprise cost for many new entrepreneurs, so be sure to budget for it.

Question 5

What is the new BOI Report (FinCEN) requirement?

Accepted Answer

Effective 2024, the Corporate Transparency Act requires almost all new LLCs to file a Beneficial Ownership Information (BOI) report with the U.S. Department of Treasury (FinCEN). This must be filed within 90 days of formation. Failure to file carries civil penalties of up to $500 per day. This is a federal requirement separate from your state filings.

Question 6

Can I be my own Registered Agent?

Accepted Answer

Yes, you can serve as your own Registered Agent in all 50 states. However, your address will be listed on the public state database, accessible to marketers. Additionally, you must be available at that address during normal business hours to accept legal mail (Service of Process). Many founders hire a service to protect their privacy.

Question 7

Do I need an EIN if I don't have employees?

Accepted Answer

Yes. While single-member LLCs technically can use the owner's SSN, most banks require an EIN to open a business bank account. Obtaining an EIN also helps protect your personal identity from theft.

Question 8

Does an LLC protect my personal assets?

Accepted Answer

Yes. The 'Limited Liability' aspect means that if your business is sued or goes into debt, your personal assets (house, car, personal savings) are generally protected. This is the primary reason entrepreneurs choose an LLC over a Sole Proprietorship.

Question 9

What is an Operating Agreement?

Accepted Answer

An Operating Agreement is an internal legal document outlining ownership stakes and rules. While not filed with the state, banks often require it to open a business account. It is critical for preventing disputes between co-founders.

Question 10

Can I start an LLC in a different state than where I live?

Accepted Answer

Yes, but it is often more expensive. If you form an LLC in Delaware but live and work in California, you will likely have to register as a 'Foreign LLC' in California and pay taxes in both states. For most small businesses, it is best to register in your home state.

How to Start an LLC in California

Step 1: Choose Your Business Type

1Name Your California LLC

2Assign a Registered Agent

3File Articles of Organization

4Get Your EIN & Bank Account

Common Questions in California