Recurring LLC costs
The generally applicable $800 annual LLC tax is separate from formation and the information statement. The temporary 2021–2023 first-year exemption is not a general 2026 exemption.
Official guidance →Your state. Your next step.Start a business
Start a business
in California.
A practical launch path for registration, taxes, local permits, hiring and recurring compliance.
Official sources checked October 17, 2026. Rules, fees and local requirements can change.
What’s different in California?
Worker status needs California analysis
The ABC test applies to many arrangements, with statutory exceptions and alternative tests. A 1099 or signed contract alone does not settle classification.
Official guidance →Local permission still matters
Use CalGold to find agencies, then confirm business tax certificates, county fictitious-name rules, zoning and occupancy directly.
Official guidance →Selected government costs and deadlines
Domestic LLC examples checked October 17, 2026; not a complete startup budget. Government charges are separate from optional service fees. Confirm exemptions, entity type and current instructions.
| Item | Government cost | Timing / scope | Source |
|---|---|---|---|
| Domestic LLC Articles of Organization | $70 filing fee | At formation; optional processing charges excluded | Official source |
| LLC Statement of Information | $20 | Within 90 days, then every two years | Official source |
| LLC annual tax | Generally $800 | First payment: 15th day of fourth month from filing; later payments follow tax-year rules. Exceptions and an additional LLC fee may apply. | Official source |
California launch guide
Build a launch checklist for your business.
Choose your work, location and hiring plans. Review the full sequence below as well; this tool cannot identify every permit.
Your launch path
Answers and checkmarks save on this device when browser storage is available. No account is required. This is an educational starting list, not a complete licensing search or a determination of your legal, tax or insurance obligations.
Your California launch sequence
Before filing
Compare structure, ownership, liability, name availability, tax treatment and startup cash. Check whether a regulated profession restricts the entity type.
Before committing to premises
Ask the city and county about permitted use, home occupation, zoning, occupancy, fire, health, signage and any industry approval. Put contingencies in the lease with professional help.
Register and calendar
Choose the structure first. File LLC Articles of Organization or the appropriate corporation/foreign-registration filing through bizfile Online. Check agent, address and professional-entity restrictions. A county fictitious business name filing and publication may also apply. For a California LLC, file the initial Statement of Information within 90 days and then every two years. Separately calendar the generally applicable $800 annual LLC tax and any income-based LLC fee with FTB. Corporation schedules differ.
Before taking payments
Check CDTFA seller’s permits and sales/use tax for the products and transactions involved. Review Franchise Tax Board income/franchise obligations separately; online sales and out-of-state formation do not remove California obligations. Open banking, set up records and confirm customer terms and applicable licenses.
Before hiring
California employers generally need workers’ compensation even with one employee. Review statutory exceptions, owner treatment and CSLB rules separately; some contractor obligations can apply without employees. Review wage, leave, payroll withholding, unemployment and new-hire reporting. Use federal and state worker tests.
Industry and worker checks
Construction / trades
Check CSLB licensing requirements and classifications before advertising, bidding or contracting. Review workers’ compensation, bond and local building-permit rules for the actual work.
Official route →Daycare / child care
Confirm the operation type, license category, staffing/background checks, inspections and premises requirements before enrolling families.
Official route →Food, beauty, agriculture and auto
Use the industry regulator and local authority for each activity. Entity formation does not authorize regulated work.
Official route →W-2 versus 1099
Check the actual relationship under each applicable test. Tax reporting, labor law and workers’ compensation may use different standards. Do not classify using only a contract, LLC or Form 1099.
Official route →Get a clear answer from your local offices
Find your city and county government’s official website. Look for planning or zoning, business licensing, building inspections and the tax or revenue office. Describe what you will actually do, including home visits, deliveries, storage and online fulfillment.
Ask these questions
- Is this activity permitted at this address?
- Which licenses, tax accounts and inspections apply?
- Do home occupation, signs, parking or customer visits change the rules?
- What must be approved before opening, and what renews later?
- Can you send the requirements and fee schedule in writing?
For a daycare, ask the child-care regulator before adapting a property. For a contractor, ask the trade board and the local building office.
Your local approval notes
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Optional tools for the next step
Government filings can be completed directly. These are optional commercial services. Affiliate/referral disclosure: Let’s Go SMALL may receive compensation if you use these links. Compare pricing, scope and ongoing costs; no tool establishes legal compliance.
Official sources and next steps
- Register — California
- Name — California
- Tax — California
- License — California
- Contractor — California
- Annual — California
- Employer — California
- Wc — California
- Child Care — California
- Worker Classification — California
Educational information only—not individualized legal, tax, insurance or accounting advice. This checklist cannot identify every rule. Consult the relevant agency and qualified advisers. Operating in another state may require foreign qualification, tax accounts and licenses there.
Nearby guides: California · Nevada · Oregon · Arizona · Idaho
More western state guides
Washington launch guide · Alaska launch guide · Hawaii launch guide
Organize your business money
Use the bookkeeping and invoicing guide for a weekly routine, invoice checklist and optional software comparison. State tax and registration duties still need separate review.