How to Form an LLC in California

Step 1: Choose and check your LLC name

California LLC names must include “Limited Liability Company,” “LLC,” or “L.L.C.” Check availability via the California Secretary of State’s bizfile Online business search. Optional: reserve your name for 60 days for $10.

Step 2: Appoint an Agent for Service of Process

California calls the registered agent the “Agent for Service of Process.” The agent must be either a California resident with a physical street address or a corporate agent registered with the SOS. PO Boxes are not allowed.

Step 3: File Articles of Organization (Form LLC-1)

File Form LLC-1 online via bizfile, by mail, or in person. The filing fee is $70. Online filings are processed in approximately 5 business days; expedited 24-hour processing is available for $350.

Step 4: File the initial Statement of Information (Form LLC-12)

Within 90 days of forming, every California LLC must file Form LLC-12 (Statement of Information) and pay $20. The Statement is then required every two years for LLCs.

Step 5: Get an EIN from the IRS

Apply for an Employer Identification Number for free through IRS.gov. EINs issue immediately for online applicants with a US Social Security Number or ITIN.

Step 6: Draft an Operating Agreement

California Corporations Code § 17701.02(s) requires every California LLC to adopt an operating agreement, oral, written, or implied, though it is not filed with the state. Single-member LLCs still need one to preserve liability protection.

Step 7: Pay the $800 annual franchise tax

California imposes an $800 minimum annual franchise tax on every LLC, due to the Franchise Tax Board (FTB) by the 15th day of the 4th month after formation, then annually thereafter. The first-year exemption from AB 85 expired in 2024.

Step 8: Comply with local licensing

Check city and county business license requirements wherever your LLC operates. Most California cities require a local business tax certificate even for online businesses with a home address in the city.

California LLC at a glance

How California compares

California's LLC filing fee is $70, $30 below the national median of $100. 12 of the 51 jurisdictions (50 states and DC) charge less to file. Filing fees are only part of the picture, so the table below sets California beside five states founders often consider.

Forming outside the state where you live and work rarely saves money. A business operating in California that forms elsewhere generally still has to register as a foreign LLC in California and pay both states' fees. Our best states for an LLC guide explains when an out-of-state filing makes sense.