Registering a business in California means filing formation documents with the California Secretary of State through the bizfileOnline portal, then meeting your tax and license obligations. A Limited Liability Company (LLC) pays a $70 filing fee. A corporation pays $100. Every entity should budget for the $800 minimum annual franchise tax. Registering as an LLC or corporation also separates your personal assets from business debts and signals credibility to customers and investors.
Start with the California Secretary of State’s Starting a Business page for the official process. This guide adds the numbers that page leaves out: exact fees, timelines, entity comparisons, and the franchise tax mechanics. Figures are current as of 2026; verify fees at the source before you file, since the Secretary of State updates them periodically.
How Much Does It Cost to Register a Business in California?
It costs $70 to form an LLC and $100 to form a corporation with the California Secretary of State, plus the $800 minimum annual franchise tax that nearly every registered entity owes the Franchise Tax Board. Add optional items like a $10 name reservation and a commercial registered agent. The table below lists each cost with its source.
| Filing or item | Fee (2026) | Source |
|---|---|---|
| LLC Articles of Organization (Form LLC-1) | $70 | CA Secretary of State |
| Articles of Incorporation (Form ARTS-GS) | $100 | CA Secretary of State |
| Limited Partnership (Form LP-1) / LLP (Form LLP-1) registration | $70 each | CA Secretary of State |
| Statement of Information | $20 LLC (biennial) / $25 corporation (annual) | CA Secretary of State |
| Name reservation | $10, holds the name 60 days | CA Secretary of State |
| Employer Identification Number (EIN) | Free | IRS |
| Commercial registered agent | ~$100–$300 per year | commercial agent pricing range |
| Minimum annual franchise tax | $800 | CA Franchise Tax Board |
What Is the Best Business Structure for a California Startup?
Startups raising venture capital (VC) almost always form C-corporations, often in Delaware and then registered as a foreign entity in California. Bootstrapped and cash-flow businesses usually pick an LLC for pass-through taxation and lighter admin. Both owe California’s $800 minimum franchise tax. The table compares each structure across the factors that decide the choice.
| Structure | Liability | California taxation | Admin burden | Fundraising fit | Best for |
|---|---|---|---|---|---|
| Sole proprietorship | Owner personally liable | Personal income tax; no franchise tax | Lowest | Poor | Solo, low-risk testing |
| General partnership | Partners personally liable | Pass-through | Low | Poor | Two-owner low-risk ventures |
| LLC | Members protected | $800 min + gross receipts fee (FTB) | Moderate | Weak for equity/options | Bootstrapped, lifestyle businesses |
| C-corporation | Shareholders protected | Greater of $800 or 8.84% of net income (FTB) | High | Strong (VC standard) | Venture-backed startups |
| S-corporation (tax election) | Follows underlying entity | 1.5% of net income, $800 minimum (FTB) | High | Limited | Profitable small corporations |
| LLP | Partners protected | $800 min (FTB) | Moderate | Poor | Licensed professionals |
An S-corp is a tax election, not an entity type. An LLC or corporation can elect S-corp status. California S-corps pay 1.5% of net income with an $800 minimum, per the Franchise Tax Board’s S-corporation rules. LLCs also owe a gross-receipts fee even in unprofitable years.
Forming in Delaware does not dodge California tax. A Delaware entity doing business in California still owes the $800 franchise tax, still files a California Statement of Information, and still needs a California registered agent, according to the Franchise Tax Board.
How Do You Register a Business in California Step by Step?
Registering follows a set sequence: pick and check a name, choose a structure, appoint a registered agent, file formation documents with the Secretary of State, get an EIN and register for state taxes, apply for licenses, file your initial Statement of Information, and open a business bank account. Each step below is self-contained.
1. Choose and check your business name
Search the California Business Search database to confirm your name is available before you file. For $10 you can reserve an available name for 60 days with the Secretary of State. If you will trade under a name other than your legal name, see the Fictitious Business Name section below. Commenda’s company name checker confirms availability in seconds.
2. Choose your business structure
Pick the structure that matches your liability, tax, and fundraising needs using the comparison table above: an LLC for bootstrapped businesses, a C-corporation for venture-backed startups. The structure sets your California tax treatment and admin load for the life of the business.
3. Appoint a registered agent
California requires every LLC and corporation to name a registered agent (agent for service of process) before filing. The agent can be a California-resident individual or a registered corporate (1505) agent. See the dedicated registered agent section below for full detail.
4. File formation documents with the Secretary of State
File online through bizfileOnline. LLCs file Articles of Organization (Form LLC-1) for $70. Corporations file Articles of Incorporation (Form ARTS-GS) for $100, per the California Secretary of State. Partnerships file a Statement of Partnership Authority. Sole proprietors make no Secretary of State filing unless they use a DBA (doing business as) name.
5. Get your EIN and register for state taxes and employees
Apply for a free EIN from the IRS; it issues immediately online. Register with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit if you sell taxable goods. Employers must register with the Employment Development Department (EDD) within 15 days of paying more than $100 in wages. Employers must also carry workers’ compensation insurance through the California Department of Industrial Relations (DIR). Our California sales tax guide covers seller’s permits and rates.
6. Apply for business licenses and permits
Obtain the local and industry licenses your business needs. Requirements depend on your city, county, and industry. See the business license requirements section below for what applies.
7. File your initial Statement of Information
File your first Statement of Information within 90 days of formation, per the California Secretary of State. LLCs pay $20 (Form LLC-12); corporations pay $25 (Form SI-550).
8. Open a business bank account
Open a business bank account to separate personal and business assets and build business credit. You will need your EIN plus your formation documents. Keeping funds separate protects the liability shield your LLC or corporation provides.
How Do You Register an LLC in California Online?
You register an LLC online by filing Form LLC-1 through bizfileOnline for $70; the same portal later handles your Statements of Information. Create an account, run an entity name search, complete the Articles of Organization form, pay the $70 fee, and download your confirmation once the Secretary of State processes the filing.
The portal walks you through each field, from your registered agent designation to your management structure. Save your filed articles and stamped confirmation. You will need both to open a bank account and to file your initial Statement of Information within 90 days.
How Long Does It Take to Register a Business in California?
Online filings through bizfileOnline typically process in a few business days, while mailed paper filings take several weeks. Expedited service is available for extra fees. Processing times fluctuate with the Secretary of State’s current backlog, so build in buffer if you have a hard launch date.
| Method | Turnaround | Source |
|---|---|---|
| Online (bizfileOnline) | A few business days | CA Secretary of State |
| Paper / mail | Several weeks | CA Secretary of State |
| Expedited tiers (24-hour, same-day, 4-hour) | Same or next business day for added fees | CA Secretary of State expedite schedule |
Confirm the current expedite fee schedule with the Secretary of State before relying on a tier, as amounts and availability change.
Do You Need a Registered Agent in California?
Yes. Every California LLC and corporation must designate a registered agent (agent for service of process) before it files. The agent can be a California-resident individual or a registered corporate (1505) agent. Commercial services typically charge $100 to $300 per year. Using an agent instead of your home address offers privacy, ensures compliance, and enhances your company’s professional image.
The agent must have a physical California street address and be available during business hours to receive legal and tax documents on your behalf.
What Is a Fictitious Business Name Statement in California?
A Fictitious Business Name (FBN) statement is a county-level filing, not a state one, required when you operate under any name other than your legal name. You must file it with the county clerk within 40 days of starting business. You then publish the name in a local newspaper once a week for four consecutive weeks and file an affidavit of publication with the county clerk.
An FBN statement, also called a DBA, must be renewed every five years. Sole proprietors trading under a name other than their own also need one.
What Are California’s Business License Requirements?
California has no single statewide general business license. Most cities and counties require a local business license, and regulated industries need state professional licenses. Requirements stack: you may need a city license, a county license, an industry license, and a seller’s permit at once. The bullets below cover the common cases.
- City license: required if you operate inside city limits; apply through the city.
- County license: required in unincorporated areas; apply through the county.
- Professional and industry licenses: healthcare, construction, and food service commonly need state licenses.
- Seller’s permit: register with the CDTFA if you sell taxable goods.
- State contracting: selling to the State of California requires Small Business (SB) or Disabled Veteran Business Enterprise (DVBE) certification through caleprocure.ca.gov.
How Much Is the California Franchise Tax?
The California franchise tax is an $800 minimum per year, owed by LLCs, corporations, LPs, and LLPs, per the Franchise Tax Board. In year one it is due the 15th day of the 4th month after formation. Newly incorporated corporations are exempt from the $800 minimum in their first taxable year. The temporary first-year waiver for LLCs, LPs, and LLPs applied only to entities formed in 2021 through 2023 and has expired, so LLCs formed now owe the $800 in year one.
LLCs also owe a gross-receipts fee on top of the $800, scaled to total California income, per the Franchise Tax Board.
| Total California income | Additional LLC fee | Source |
|---|---|---|
| $250,000–$499,999 | $900 | CA Franchise Tax Board |
| $500,000–$999,999 | $2,500 | CA Franchise Tax Board |
| $1,000,000–$4,999,999 | $6,000 | CA Franchise Tax Board |
| $5,000,000 and above | $11,790 | CA Franchise Tax Board |
C-corporations pay the greater of $800 or 8.84% of net income. S-corporations pay 1.5% of net income with an $800 minimum, per the Franchise Tax Board.
What Ongoing Filings Does a California Business Owe?
California businesses file a Statement of Information, pay the annual franchise tax, and renew local licenses and any FBN. LLCs file the Statement of Information every two years for $20; corporations file annually for $25, per the California Secretary of State. The compliance calendar below lists each recurring obligation.
| Filing | Frequency | Fee | Agency |
|---|---|---|---|
| Statement of Information (LLC, Form LLC-12) | Every 2 years | $20 | CA Secretary of State |
| Statement of Information (corporation, Form SI-550) | Annual | $25 | CA Secretary of State |
| Minimum franchise tax | Annual | $800 | CA Franchise Tax Board |
| Local business license renewal | Varies (often annual) | Varies | City or county |
| Fictitious Business Name renewal | Every 5 years | Varies | County clerk |
Missing a Statement of Information triggers a $250 penalty assessed by the Franchise Tax Board after the Secretary of State certifies the delinquency, under California Revenue and Taxation Code Section 19141. Commenda’s compliance calendar tracks every deadline by entity so nothing slips.
How Commenda Simplifies California Business Registration
Commenda handles California entity formation and the compliance that follows. Its incorporation service files your Articles of Organization or Incorporation, provides a registered agent, and tracks every downstream filing so each one gets done on time. You know what is filed, when, and by whom.
For seller’s permit and sales tax rate questions, use our California sales tax guide. To keep every franchise tax and Statement of Information deadline in view, lean on the compliance calendar. Book a demo to get your California formation and compliance calendar handled end to end.
