License & permits · California

Starting a cleaning business in California

Last checked against official sources: 2026-10-19

The big one in California: if you form an LLC, it owes an $800 annual tax to the Franchise Tax Board every year, even in a year it does no business, until you cancel it. The first payment is due by the 15th day of the 4th month after you file with the Secretary of State.[1]

What you need in California

  1. Decide: sole proprietor or LLCAn LLC costs at least $800 a year in state tax.[1] Many new cleaners start as sole proprietors and switch later. Compare structures.
  2. RegisterLLCs file with the Secretary of State (bizfile Online). A business name that isn't your own usually needs a DBA (fictitious business name) filing.[2]
  3. Get your free EIN[3]
  4. Find your city and county permitsCalGold is the state's permit finder: enter your city and business type.
  5. Check sales taxAsk the CDTFA whether anything you sell needs a seller's permit.
The first-year $800 exemption is gone. It only applied to LLCs for tax years beginning in 2021 through 2023, so an LLC formed now owes the $800 from its first year.[1]

Questions people ask

How much does an LLC cost per year in California?

At least the $800 annual tax to the Franchise Tax Board, due every year until the LLC is cancelled.[1]

Is there still a first-year $800 exemption for California LLCs?

No. It applied only to tax years beginning in 2021 through 2023.[1]