How to Form an LLC in California
Complete step-by-step guide to starting your California LLC, including costs, requirements, and timeline. Everything you need to know to get started.
Choose Your LLC Name
Your LLC name must be unique and include "LLC" or "Limited Liability Company". Check availability on the California Secretary of State website.
- • Must be distinguishable from existing LLCs
- • Cannot contain restricted words without approval
- • Consider reserving your name if not ready to file
Appoint a Registered Agent
Every California LLC must have a registered agent with a California address to receive legal documents and official correspondence.
- • Can be yourself, another person, or a professional service
- • Must have a California street address (no P.O. boxes)
- • Must be available during business hours
File Articles of Organization
Submit Form LLC-1 to the California Secretary of State with the $70 filing fee. This officially creates your LLC.
- • Can file online, by mail, or in person
- • Include LLC name, registered agent, and management structure
- • Processing takes 15-20 business days
Create an Operating Agreement
While not required by law, an operating agreement protects your limited liability status and defines how your LLC will operate.
- • Defines member roles and responsibilities
- • Establishes profit and loss distribution
- • Provides legal protection for members
Obtain an EIN
Get an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account.
- • Free to obtain directly from the IRS
- • Required for multi-member LLCs
- • Needed to open business bank accounts
Annual Franchise Tax
California LLCs must pay an $800 annual franchise tax, due by the 15th day of the 4th month after formation and every year thereafter.
Statement of Information
File a Statement of Information (Form LLC-12) within 90 days of formation and biennially thereafter. Filing fee is $20.
LLC Fee Based on Income
LLCs with gross receipts of $250,000+ must pay an additional annual fee ranging from $900 to $11,790 based on total income.