How to Start an LLC in California for Free
Looking to launch a California LLC without spending a dime? Spoiler alert: You can't, but you can slash some of the costs. Read on to learn more.
 |
Here are two ways to file your California LLC for as little money as possible:
At one point, you could actually start an LLC in California for free. But that's not the case anymore.
While you can't skirt mandatory filing fees these days, you can still keep your overall formation costs surprisingly low.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Form Your LLC at $0 + State Filing Fees
- Articles of organization
- Name check service
- Digital welcome packet
- Customizable website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
How much is the LLC fee in California?
There's a mandatory $70 fee to file the Articles of Organization of your Limited Liability Company with the Secretary of State of California. Plus, you have to shell out $20 for the Statement of Information, which is due within 90 days of forming your LLC.
Besides these basic LLC filing fees, there could be other potential expenses. However, there are ways to minimize costs throughout the process. Read on to learn how.
DIY LLC Formation
California LLC fees can be overwhelming—and costly! But with strategic planning (and a little elbow grease), you can limit baseline costs to a minimum of $90.
Since most paperwork and processes can quickly run you up to hundreds, if not thousands, of dollars, see which ones you can work around to reduce expenses.
Verify your LLC Name's availability
Head straight to the California Secretary of State's Business Search to check if the name you have in mind is taken—for free.
If you can submit the filing paperwork quickly, you don't even need to pay the $10 name reservation fee. Your LLC name is automatically locked upon approval of the Articles of Organization filing. This can save time and money while ensuring your chosen name is secured.
Be your own registered agent
California requires LLCs to have a registered agent. This is a person or entity designated to receive legal documents or state notices on behalf of your LLC.
You can eliminate recurring registered agent fees (which typically range from $50 to $300 annually) by serving as your own agent.
Keep in mind you'll need to be available during business hours at a physical California address to ensure you don't miss important documents or legal notices.
For privacy, many LLCs use a registered agent service, though it does come with an annual fee.
File your Articles of Organization Directly With the State
You can file your Articles of Organization yourself through the California Secretary of State website. You'll need to pay the $70 filing fee with your submission. Standard online filing processing for California usually takes 8 business days.
Tip: Give yourself a 3-4 week buffer, especially if filing during the peak months of December through February. Better yet, wait until the post-tax season if you can (May through summer), when processing times are typically faster.
By planning ahead, you can avoid costly expedited processing fees. They start at $350 for 24-hour filing (excluding weekends and holidays) and significantly increase for faster turnarounds.
File your Statement of Information on time
In California, the Statement of Information contains the LLC's up-to-date name, contact details, members/managers, type of business, CEO (if applicable), and registered agent.
It's due within 90 days of your LLC formation and costs $20. But you still get an additional 60-day grace period before getting charged a $250 late fee. Avoid that unnecessary expense by filing on time.
Draft your Operating Agreement
California requires all LLCs to have an Operating Agreement
, but you don't have to file it with the state—you've just got to have one.
Your operating agreement doesn't have to be complex; a one-pager works fine. Especially if you're a single-member LLC. No need for fancy clauses unless you're scaling big.
You can just draft it using free templates available online instead of hiring a lawyer, which could easily cost $1,000 or more for a custom version.
If your LLC doesn't have an operating agreement, state rules will kick in during legal disputes, which can be stiff. For example, without an operating agreement, the state will divide profits and losses equally, even if you invested 70%, and 30% by your business partner.
What if you could get help for free? Keep reading.
Free California LLC Formation Service
Several online LLC services offer free LLC formation in California. While you’ll still need to pay the required state filing fee, these companies waive their own preparation fees—helping you launch your business without extra costs.
It's a convenient option if you want to save time, avoid paperwork mistakes, and get peace of mind.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Form Your LLC at $0 + State Filing Fees
- Articles of organization
- Name check service
- Digital welcome packet
- Customizable website
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
Bizee
Bizee's Basic formation package might be a good alternative to DIY. The extra "handholding" comes with zero cost while ensuring your LLC is filed correctly. Plus, it includes a free registered agent for one year—a $100 to $300 value.
What's more, you get a real-time dashboard to track your LLC status. You'll also receive lifetime compliance alerts, so you don't miss deadlines.
If you need more, Bizee offers two paid plans with additional services, like an operating agreement, EIN, and business website.
ZenBusiness
Similar to Bizee, ZenBusiness has a free Starter plan that cover the basic filing of your California LLC formation documents.
Besides checking your LLC name and submitting the Articles of Organization, ZenBusiness offers a safety net with their 100% accuracy guarantee, giving you extra protection against costly filing errors.
By selecting a free plan and handling some steps yourself, you can take advantage of ZenBusiness' professional support while keeping your total costs low.
Tailor Brands
Tailor Brands offers a Lite plan that includes a generous set of LLC formation services for free, which include:
- Professional preparation and filing of your Articles of Organization
- 30-day complimentary trial for invoicing and bookkeeping services
- Free business coaching program
With these services, Tailor Brands Lite can provide a solid foundation for your new LLC without the premium price.
Inc Authority
Inc Authority is another LLC formation service with a free plan that's genuinely useful. It stands out with one year of complimentary registered agent services.
This comes in handy during that crucial first year, letting you focus on building your business without worrying about missing important mail or legal notices.
The free package also includes valuable extras, such as:
- Digital storage for your startup documents
- Tax planning consultation to optimize your financial structure
- Business credit and funding analysis to support your growth strategy
Still have questions about California LLCs? Check out some of the answers by clicking the dropdowns in next section.
FAQS
- What to do after creating an LLC in California?
Once your Articles of Organization is greenlighted, complete these critical actions to maintain your LLC's legal standing and operational efficiency in California:
- Get your EIN via IRS website (free).
- Create an operating agreement (free or up to $1,000).
- Submit Statement of Information within 90 days of your LLC formation ($20).
- Pay the annual tax—due on the 15th day of the 4th month following your LLC formation ($800 for every business, regardless of revenue)
- Open a business bank account.
- Secure licenses/permits, if applicable.
- Insure your business (highly recommended; cost of premiums vary).
Read More: How to Start an LLC in California - Get your EIN via IRS website (free).
- How do I avoid the $800 tax in California LLC?
While you can't escape California's annual tax, you can delay it by filing your LLC with 15 days or less left during a taxable year.
So if you file on Dec. 17, 2025 and don't conduct any business through Dec. 31, 2025—you won't have to pay $800 for that year. Your first payment would then be due on April 15, 2026
. - What's the biggest benefit of an LLC?
The biggest benefit of an LLC is protecting your personal assets. This legal structure creates a clear separation between your personal and business finances. It effectively shields your personal home, car, or investments from business debts and lawsuits.
An LLC's liability protection is only effective if you keep your business and personal finances separate. Open a dedicated business bank account to avoid commingling funds.
- Does an LLC expire in California?
In general, LLCs in California stay active indefinitely unless you choose to close it. But if you don't file your annual compliance report, you can lose your good standing and the state can even dissolve your LLC.
Once dissolved, you can’t legally operate anymore, and your LLC name becomes available for others to claim.
- How long does it take to get an LLC in California?
The California Secretary of State usually processes online filings of LLC formation documents within 8 business days, though this may vary depending on submission volume. You can check out real-time processing updates here.
- Do I have to pay taxes for an LLC in California if it has no income?
Unfortunately, yes. California charges an annual franchise tax of $800/yr regardless of your LLC's revenue.[3]
Bottom Line
Starting a California LLC for free isn't possible at this time. But if you're willing to take the DIY route or take advantage of free LLC formation plans, the savings can be substantial.
Ultimately, these cost-saving strategies allow you to preserve capital for critical business operations while still establishing legal protection for your entrepreneurial venture.
References
- ^ California Legislative Information. SB-154 Budget Act of 2022, Retrieved 3/11/2025
- ^ Bizee. Can You Be Your Own Registered Agent for an LLC?, Retrieved 3/13/2025
- ^ California Tax Service Center. Limited Liability Companies, Retrieved 3/12/2025
Penelope Besana is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Penelope Besana at penelope.besana@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
|
|
| ||||||
|
|
|
