How to Start an LLC in California
Filing Fee: $70 | Processing Time: 5 business days
California LLC Costs
$70
Filing Fee
$800
Annual Franchise Tax
Minimum tax due every year
5 business days
Processing Time
Important California LLC Warning
California has the highest LLC fees in the nation. Every LLC must pay an $800 annual franchise tax, regardless of income. New LLCs are exempt from this tax for their first year if formed after January 1, 2021. Additionally, LLCs with gross receipts over $250,000 must pay an additional fee.
5 Steps to Form an LLC in California
1Choose a Name for Your California LLC
Your California LLC name must be unique and comply with state requirements:
- Include "Limited Liability Company," "LLC," "L.L.C.," "Limited Liability Co.," or "Ltd. Liability Company"
- Be distinguishable from other California businesses
- Not imply government affiliation
- Not include restricted words without proper licensing (Bank, Trust, Insurance, etc.)
Name Search: Use the California Secretary of State Business Search at businesssearch.sos.ca.gov to check availability.
2Appoint a California Registered Agent
Every California LLC must have an Agent for Service of Process (Registered Agent). Your agent must:
- Have a physical street address in California (PO boxes not allowed)
- Be available during normal business hours (9 AM - 5 PM)
- Be a California resident OR a corporation authorized to do business in California
You can be your own Registered Agent, or hire a professional service.
3File Articles of Organization
File Form LLC-1 (Articles of Organization) with the California Secretary of State. You can file:
- Online: Through bizfileOnline.sos.ca.gov (fastest)
- By Mail: Secretary of State, Business Entities Filings, P.O. Box 944260, Sacramento, CA 94244-2600
- In Person: 1500 11th Street, Sacramento, CA 95814
Filing Fee: $70
Processing: 5 business days online, 2-3 weeks by mail
4Create an Operating Agreement
While not required by California law, an Operating Agreement is essential. It:
- Protects your limited liability status
- Prevents disputes among members
- Allows you to customize your LLC rules
- Is required by banks to open business accounts
5Obtain an EIN from the IRS
An Employer Identification Number (EIN) is required for:
- Opening a business bank account
- Filing federal and state taxes
- Hiring employees
- Obtaining business licenses
How to Apply:Visit irs.gov and search for "EIN Application." The online application is free and provides your EIN immediately.
California LLC Ongoing Requirements
Statement of Information (Form LLC-12)
Due: Within 90 days of formation, then every 2 years
Fee: $20
This form updates the state on your LLC's addresses, management, and Registered Agent.
$800 Annual Franchise Tax
Due: By the 15th day of the 4th month after your LLC is formed, then annually
Amount: $800 minimum (even if your business makes no money)
Additional Fee: LLCs with gross receipts over $250,000 pay extra:
- $250,000 - $499,999: $900
- $500,000 - $999,999: $2,500
- $1M - $4,999,999: $6,000
- $5M+: $11,790
Business Licenses
Depending on your business type and location, you may need city, county, or state business licenses. Check with your local city hall and the California Governor's Office of Business and Economic Development (GO-Biz).
Start Your California LLC Today
Get started with our free guide or hire a professional service.