Form your company in California

Why form an LLC in California?

Form in California only if you (or your team) genuinely live or operate here. For a non-US founder with no California nexus, the mandatory $800/yr franchise tax makes it one of the most expensive states to hold an LLC in — Wyoming or New Mexico is usually the better home base.

A quick reminder from us: forming in a state where you do not actually operate usually means you still have to register (foreign-qualify) in your home state, often with little or no tax benefit. If you are unsure, tell us how you plan to operate and we will recommend the right fit — free.

Costs and fees

The California Secretary of State charges roughly $70 to file Articles of Organization, with an ongoing state cost of about $800/yr min. franchise tax + $20 biennial Statement of Information. $800/yr minimum franchise tax (all LLCs) plus a gross-receipts fee on California-source income over $250k; CA has personal income tax and a base 8.84% corporate rate. State fees are paid directly to the state and are separate from our service fee.

• Filing fee: $70 (approximate)
• Ongoing state cost: $800/yr min. franchise tax + $20 biennial Statement of Information
• Typical processing time: Same day–few days (online)

Taxes and privacy

Personal state income tax in California: Yes. Owner privacy on the public record is generally rated low.

Your federal tax obligations (and your EIN) are the same regardless of the state you choose — a single-member LLC is taxed as a pass-through by default, and we can obtain your EIN even if you do not have an SSN.

Pros of forming in California

• Low one-time state filing fee of $70
• Access to the world's largest startup ecosystem, banking, and investor network if you're actually operating here
• Online filing via bizfile is fast, often same-day to a few days
• Statement of Information is only every 2 years, not annual
• Strong, well-tested LLC case law and courts

Things to weigh

• $800 minimum annual franchise tax applies even with zero revenue or activity
• Additional gross-receipts LLC fee ($900–$11,790/yr) once California-source income tops $250,000
• Members/managers are listed on the public Statement of Information — little owner privacy
• If you form elsewhere but do business in CA, you must still register as a foreign LLC and pay the $800 anyway — no way to avoid it while operating here

Banking for your California LLC

A US business bank account is not tied to your formation state — a California LLC can open with fintechs like Mercury, Wise, or Relay that accept non-US founders, same as any other state. Forming in CA gives no banking advantage; it is only worth it if you truly operate here.

Whichever state you choose, we prepare the documents banks ask for and can obtain your EIN even without an SSN. Bank and provider approval is always their decision — we are not affiliated with any bank.

Is California right for you?

Best for: Founders actually operating in California. If you operate physically in California, forming here keeps things simple. If you are a remote or non-US founder without a specific reason to choose California, a low-cost, privacy-friendly state like Wyoming or New Mexico is often the better default.

Not sure? Start your application and we will confirm the best state for your situation before anything is filed.