Answers before you file
California business formation FAQ
California formation, ongoing filings and tax obligations are separate requirements. These answers summarize official Secretary of State, FTB and IRS guidance so you can understand the next step before you order. Consult a licensed professional for advice specific to your business.
Last reviewed: October 2026
The requirements
What to know before you file
Use official records
Check California entity records and available filings on the Secretary of State’s bizfile Online portal.
Official source: California Secretary of State – bizfile OnlineThe answers that matter
Your California questions, answered
$70 for LLC-1 Articles and $20 for the initial Statement of Information. The initial statement is due within 90 days, then every two years.
Official source: California Secretary of State$100 for general stock Articles and $25 for the initial Statement of Information, due within 90 days and annually thereafter.
Official source: California Secretary of StateGenerally yes. The temporary exemption applied only to tax years beginning in 2021–2023 and has expired.
Official source: https://www.ftb.ca.gov/file/business/types/limited-liability-company/index.htmlGenerally no for its first taxable year, subject to eligibility. Income-based tax can still apply.
Official source: https://www.ftb.ca.gov/file/business/types/corporations/index.htmlThe general rate is 1.5% of California-source income with an $800 minimum. A newly formed or qualified S corporation generally has a first-taxable-year minimum-tax exception. Financial S corporations have a different rate.
Official source: https://www.ftb.ca.gov/file/business/types/corporations/s-corporations.htmlFailure to file can lead to suspension or forfeiture; FTB says SOS may impose a $250 penalty that FTB collects.
Official source: https://www.ftb.ca.gov/help/business/my-business-is-suspended.htmlYes. The IRS issues EINs free of charge; paid preparation assistance is optional.
Official source: https://www.irs.gov/instructions/iss4For most licensed professions, consider a professional corporation instead. LLC-1 instructions prohibit LLC professional services as defined by the referenced statutes; confirm your profession’s rules.
Official source: California Secretary of State – official form (PDF)With the county where your principal place of business is located. Confirm local publication requirements and costs with the county clerk.
Official source: California Secretary of StateYour next chapter. In California.
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Corp USA is not a law firm and does not provide legal advice.