To start an LLC in California, you file Articles of Organization (Form LLC-1) with the Secretary of State and pay a $70 filing fee. That single filing creates the entity, but you’ll also need a registered agent, an operating agreement, a federal tax ID, a Statement of Information filed within 90 days, and the money set aside for California’s $800 annual franchise tax. Online filings typically clear in three to five business days.
Pick a Name and Check Availability
Your LLC name has to include “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.” You can shorten “Limited” to “Ltd.” and “Company” to “Co.”1California Legislative Information. California Corporations Code CORP 17701.08 The name can’t be deceptively similar to any LLC, corporation, or reserved name already on file.
Search the Secretary of State’s business name database before you commit. Minor tweaks won’t save a conflict; the state applies a “distinguishable in the records” standard, which is a low bar for rejection.1California Legislative Information. California Corporations Code CORP 17701.08 If you plan to do business under a different name, file a fictitious business name statement with the county where your principal office sits. County fees and newspaper publication costs vary.
Name a Registered Agent
Every California LLC must have an agent for service of process, meaning someone authorized to accept lawsuits and legal notices for the company. The agent can be an individual who lives in California or a registered corporate agent, and the address on file has to be a physical California street address staffed during normal business hours.2California Legislative Information. California Corporations Code CORP 17701.13 A P.O. box doesn’t qualify.
You can list yourself if you’re reliably available at that address. Commercial registered agent services typically run $50 to $300 per year if you’d rather keep a home address off public filings or you travel often.
File the Articles of Organization
Form LLC-1 is what actually creates your LLC. It asks for your LLC name, the registered agent’s name and address, your business and mailing addresses, and whether the LLC will be managed by one manager, more than one manager, or all members. That management choice decides who has authority to sign contracts, open bank accounts, and bind the company.
The standard filing fee is $70. You have three ways to submit:
- Online through the Secretary of State’s bizfile portal. Standard processing currently runs about three to five business days based on posted processing dates.3California Secretary of State. Current Processing Dates
- By mail to the Sacramento office, which can take several weeks in busy periods.
- In person at the Sacramento office with a $15 special handling fee on top of the filing fee.4California Secretary of State. Service Options
If you need it faster, expedited processing costs $350 for 24-hour turnaround or $750 for same-day, available online and at the Sacramento drop-off window.4California Secretary of State. Service Options Once the state accepts your filing, you get back a file-stamped copy of the Articles with an assigned entity number. That’s your proof the LLC exists. Banks, landlords, or business partners sometimes want a Certificate of Status on top of that to confirm your LLC is active and in good standing.
Write an Operating Agreement
California law requires every LLC to have an operating agreement, including single-member LLCs.5California Legislative Information. California Corporations Code CORP 17701.10 You don’t file it with the state. It’s an internal contract among the members covering how profits and losses are split, each member’s voting rights, what happens when a member leaves or joins, and how the LLC dissolves.
Skipping it is the most common mistake new LLC owners make. Without an agreement, California’s default statutory rules fill every gap, and those defaults may not match what you and your partners actually intended. For a single-member LLC the document still matters because it reinforces the separation between you and the business, which is the liability protection you formed the LLC to get.
Get an EIN from the IRS
An Employer Identification Number is a nine-digit number the IRS assigns to your business for tax purposes. You need one to open a business bank account, hire employees, and file federal tax returns. The application is free on IRS.gov and the number is issued immediately when you finish.6Internal Revenue Service. Get an Employer Identification Number Form your LLC with the state first, because the IRS may hold up the application if the entity isn’t on file yet.
A single-member LLC with no employees and no excise tax liability isn’t technically required to have an EIN and can use the owner’s Social Security number instead.7Internal Revenue Service. Single Member Limited Liability Companies Most banks require one anyway, and using an EIN keeps your SSN off invoices and W-9s. Get one.
File the Statement of Information Within 90 Days
Within 90 days of filing your Articles, you have to file a Statement of Information (Form LLC-12) with the Secretary of State.8California Legislative Information. California Corporations Code 17702.09 It updates the state on your business address, mailing address, registered agent, and managers or members. The fee is $20.
After the first one, you refile every two years. LLCs formed in an even-numbered year file in even years; odd-year formations file in odd years. You can submit the biennial statement during the six months leading up to your formation anniversary month.
Miss the deadline and the Franchise Tax Board hits you with a $250 penalty, and the Secretary of State can eventually suspend the LLC. A suspended LLC can’t legally do business in California, can’t file lawsuits, and can be a hassle to revive. Put a recurring calendar reminder on it.
Plan for the $800 Franchise Tax
Every California LLC owes an $800 minimum franchise tax each year, regardless of revenue, including years when the business earns nothing. Payment is due by the 15th day of the fourth month after your taxable year begins, which is April 15 for calendar-year filers. Use Form FTB 3522 to pay.9Franchise Tax Board. Due Dates – Businesses
California used to waive the first-year $800 for new LLCs, but that exemption expired for taxable years beginning on or after January 1, 2024.10Franchise Tax Board. Limited Liability Company Form your LLC in 2026 and you owe the full $800 for year one. Late payment triggers a penalty plus interest.
Gross Receipts Fee for Higher-Earning LLCs
On top of the $800, California charges an added fee once your California-source income reaches $250,000:10Franchise Tax Board. Limited Liability Company
- $250,000 to $499,999: $900
- $500,000 to $999,999: $2,500
- $1,000,000 to $4,999,999: $6,000
- $5,000,000 or more: $11,790
You estimate this fee and pay it by the 15th day of the sixth month of the current tax year on Form FTB 3536. It catches people off guard because it’s due mid-year on an estimate, not at year-end on actuals. Underestimating draws penalties, so if revenue is climbing, estimate high.10Franchise Tax Board. Limited Liability Company
Other Compliance Items to Line Up
Local Business Licenses
California has no general state business license, but most cities and counties require their own. Some charge a flat annual fee; others base it on gross receipts. Check with the city clerk or county tax collector where you operate before opening.
Workers’ Compensation Insurance
If your LLC has even one employee, California law requires workers’ compensation coverage. That includes family members working for the business.11CA.gov. Do I Have to Have Workers Compensation Insurance Operating without it can bring a stop-work order and criminal penalties. A single-member LLC with no employees doesn’t need it, but the requirement attaches the moment you bring someone on, even part-time.
Beneficial Ownership Reporting
The federal Corporate Transparency Act originally required new LLCs to file Beneficial Ownership Information reports with FinCEN. A 2025 interim final rule exempted all domestic reporting companies, including LLCs formed in any U.S. state, from that filing.12Federal Register. Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension As of 2026, a California LLC formed by U.S. persons does not file a BOI report. That could change, so watch for new FinCEN rules if your LLC has foreign owners or investors.
Licensed Professions Can’t Use an LLC
Before you file anything, confirm an LLC is actually open to your profession. California prohibits LLCs from providing any professional service that requires a state license, certification, or registration under the Business and Professions Code. Doctors, lawyers, accountants, architects, engineers, dentists, psychologists, and many other licensed professions are blocked from the LLC structure.
The alternatives are a professional corporation under Corporations Code Section 13401, or, for attorneys and accountants specifically, a limited liability partnership. If your license is issued under the Business and Professions Code, the LLC is off the table and you need to choose one of those forms instead.