Starting an LLC in California in 2026: Filing Requirements, the $800 Annual Tax, and Mistakes to Avoid
Forming an LLC in California in 2026 requires filing Articles of Organization for $70, paying the mandatory $800 annual franchise tax every year regardless of profit, and staying on top of the biennial Statement of Information. New LLCs formed in 2026 get a first-year exemption from the $800 tax, but many owners are caught off guard when it comes due after that. Common mistakes include forgetting compliance deadlines, skipping the operating agreement, and mistakenly believing an out-of-state LLC avoids California fees when the business actually operates in California. Working directly with an attorney rather than filing solo helps business owners, especially those already holding real estate, structure their LLC correctly, protect personal assets, and avoid penalties or suspension from the Franchise Tax Board.


