When you plan to start your business, specifically an LLC in California, you must go through a handful of necessary steps. The usual steps include naming your business, getting a registered agent, filing the formation document, and getting the operating agreement. As an LLC owner in California, one must submit the initial report to the Secretary of State. This report must be submitted within a certain period after establishing your LLC.
On this page, all the steps are explained. However, it is wise to get professional help, as it is tedious to do everything. Your documents can be cancelled anytime if they are not filled out properly with the correct information and supporting documents. Hence, it is wise to get professional LLC services. You can get them for $0, so they are free; the mandatory state filing fee must be paid, though. Check out the steps shared in this article. We also shared a video if you don't enjoy reading much. Watch it before you start.
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How to Start an LLC in CaliforniaAfter Starting Your California LLCCalifornia Foreign LLCCalifornia LLC Formation ReviewF.A.QsHow to Start an LLC in California
An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members' personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner's personal assets to meet their corporate liabilities.
If you wish to start an LLC, you must file your Articles of Organization with the State and pay a filing fee of $70. While it's the most important step, it's not the only one. There are 5 other crucial steps to follow to get your LLC formed in California. Below are all 6 steps that explain everything you need to do to start a California LLC in 2026. Let's get started! You can always hire a professional LLC formation service in California to set up your LLC instead of doing it alone; a professional service will ensure everything is done properly.
Step 0Decide on the Structure and Nature of the Business
Before you start filing your LLC in California, you must decide on the structure of your LLC (whether it is a Single-member or a Multi-member LLC). A single-member LLC is a business structure where only one individual runs the company. This type of limited liability company (LLC) provides legal protection to its owner and enables them to operate their business while taking advantage of certain tax benefits. In contrast, a traditional multi-member LLC must have at least two members involved in the company’s management and ownership.
For both types of structures, the process of establishing is the same in California. The tax burden might be different if you chose a different tax structure while filing the Articles of Organisation.
LLC vs S-Corp
Many people often get confused about an S-Corporation being a corporate structure like an LLC. However, it is not. It is rather a tax structure that LLCs have at the time of filing the formation document. It’s a tax classification that might result in significant financial savings for corporations and LLCs, but in different ways.
If you want an S corp status for your business, you can always form an LLC to protect your personal assets from business debts. It takes some basic steps to have a successful S-Corporation in California.
LLC in California - At a Glance
| State Filing Fee | $70 |
|---|---|
| LLC Processing Time | Approx 3 Business Days (Fluctuates based on date of registration) |
| First-year Franchise Tax | $800 (due in 3m 15d from LLC approval) |
| Statement of Information | $20 (due within 90 days of LLC formation) |
| Gross Receipt Fee (>$250k) | From $900 to $11,790 |
| Biennial Report (SOI) | Mandatory every 2 years |
Step 1Decide on a Name for Your California LLC
The first step in forming a limited liability company in California is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follow all the LLC naming guidelines.
LLC Naming Guidelines in California
There are a few specific requirements all LLCs in California have to follow while naming their Company. Some of the most important requirements are as follows:
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"Limited Liability Company", "LLC", "L.L.C.", "LC", "L.C.", and "Limited Company" - any one of these has to be used as a suffix in your business name.
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You cannot use any name for your business that is confusing or misleading. Terms such as "Treasury", "State Department", "FBI", "CIA", etc. shouldn't be included.
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Terms like "Bank", "University", "Attorney", "Doctor", etc, can be added only after the additional requirements by the California State Government are fulfilled.
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(Optional) It's better to name your business something for which your desired domain is available.
| Important Links - | Submit Offline Form to - |
|---|---|
| California Business Entity Search - Online Name Search Name Reservation Form - PDF California LLC Name Search Guide - Instructions | Secretary of State, Atten: Name Availability Unit 1500 11th Street, FL. 3 Sacramento, CA 95814 |
Reserve Business Name for Future
If you do not wish to file your LLC right now, but want to hold the name you have decided on, you can reserve your LLC name for 60 days. To keep the name, you must file a name reservation application and pay $10 (by mail) or $20 (in-person drop) to reserve your name with the California Secretary of State. You can renew the name after 60 days, but not for another 60-day period.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the California local county by submitting an online form (for example, LA County Online Form) and the filing fee of $26 (county-wise, the fee varies) for first-time registration for each additional filing, which costs $5 for each.
Do I have to include LLC in my company email/domain?
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2Assign a California Agent for Service of Process
The second step to forming an LLC in California is to appoint an Agent for Service of Process. In some states, it is known as a Registered Agent. A registered agent is a person or business entity working on your LLC's behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in California. Hence, hiring a competent California Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of California or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.
- 1-day rush filing (add-on)
- Attorney help (legal plan)
- Established reputation
These two are our top recommendations for registered agent service, as they are competent and authorised to conduct business in California. Some LLC formation services also offer standalone California registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don't want to disclose your home address, or you don't want to pierce the corporate veil.
Who Can Be a Registered Agent?
A person above 18 years of age and who has a physical address in the state of California can be a Registered Agent. A Registered Agent for service of process can be an independent person or a business entity. One is responsible for handling all the legal documents on the LLC's behalf.
Can I Be My Own Registered Agent?
Yes, you can be your own registered agent for service of process if you are a resident of the state of California and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in California.
Why Shouldn't I be My Own Registered Agent?
There are a few reasons why you shouldn't be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won't be easy for you, as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
What is Piercing the Corporate Veil in an LLC?
If an LLC is sued in California, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are no longer separated. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
Step 3File Articles of Organization in California
The third and most important step in forming an LLC is to file the Articles of Organization. This California Articles of Organization is a legal document that is required to register your business with the California Secretary of State. It costs $70 (online and by mail filing) to file your formation certificate in California.
The articles of organization include details like the name of the LLC, the registered agent's name, address, employees' details, and the company's structure (member-managed or manager-managed). Before hiring employees in a California LLC, one should thoroughly know the rules and regulations. Also, if you are expanding your existing business (an LLC) in other states to California, you must register as a California Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the login page. If you are already a subscriber, then log in with your credentials. If not, then you have to sign up for the site. You can either select the option 'Sign-up' from the Login page or click on the button below. Read more about the California Articles of Organization for online registration.
Processing Time: Usually, it takes around 3 business days for standard filing. But the real time varies according to the dates it gets registered. Refer to the CA Business Processing Time page to know the exact time of your LLC processing after registration.
Step 4Initial Statement of Information Filing
In California, LLCs have to file the Initial Statement of Information with the California Secretary of State. This type of document is not common in all states. This statement includes all the unknown information that is not mentioned in the formation documents. Within the first 90 days of LLC formation, LLCs have to submit this statement. If any LLC misses the deadline and cannot file the Statement of Information within the first 90 days of LLC approval, they may have to pay a penalty of $250.
California is one of those few states that require this document. Basically, this document has everything that was decided in the LLC's first board meeting. It costs $20 to file the Initial Statement of Information. It can be filed online, by mail, or in person.
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File Initial Statement of Information - By mail or in person
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Filing Fee - $20
Mailing Address: Secretary of State, Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244
In-person Submission: California Secretary of State Sacramento Office
1500 11th Street
Sacramento, CA 95814
Step 5Create Your LLC Operating Agreement in California
Moving on to the fifth step, filing your operating agreement. An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. Even for the informal business structure, you should get this document.
When it comes to filing a California LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation, which helps in making future business decisions, especially if you decide to dissolve California LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.
Step 6Filing a California LLC EIN
The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business, for that matter.
For an LLC in California, an EIN is required when the LLC hires employees. Apart from that, banking services, tax filings, and many other government documents require an LLC to obtain an EIN in California. On the other hand, if your LLC is based in another state (home state) and you are expanding your business in California, you must get an EIN to establish a Foreign LLC in California.
To obtain an EIN (aka FEIN), one must fill out a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don't need a Social Security number when getting an EIN. You can proceed to fill out the I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulations, you are now done with all the necessary steps to form your Limited Liability Company in California. If you do it yourself, it may take you a long time to understand and do all the steps properly. You can consult an attorney, a professional, or any expert to reduce time and effort.
After Starting Your California LLC
After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things, like appointing a legit registered agent, having enough capital, and filing all the major documents with the state, can save the LLCs from being pierced through the corporate veil.
BOI Report Filing
According to the Corporate Transparency Act, foreign entities registered to do business in the U.S. must file a BOI report with FinCEN. However, note that as of March 26, 2025, FinCEN issued an interim final rule removing BOI reporting requirements for all domestic U.S. companies and U.S. persons. If your LLC was formed under U.S. law, you are currently exempt from BOI filing obligations — consult the FinCEN BOI page for the latest guidance, as this regulatory area remains subject to change.
Apart from that, there are a few things you need to take note of,
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Get a company business bank account, business credit cards, business accounting tools, and, if needed, business accounting software. Business accounts and related software help LLCs to conduct business with ease.
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File California business permits & licenses. Check all the details of business licenses before you choose the one for your LLC. Pay the fees for business licenses on time to avoid discrepancies. To run any legitimate business in California, it is mandatory to get a proper license and permit.
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Get general liability insurance and professional liability insurance with coverage for employees. There are many types of business insurance. If you have a simple business structure, you might not need much insurance. On the other hand, for a large LLC, you might need more.
This page has provided you with steps for LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
The LLC formation processing time in California is 8 business days if filing offline or online. Check how long it takes to form an LLC to know about the tentative timelines.
Cost of Starting an LLC in California
LLCs can be formed for a very low price. Apart from the mandatory state filing fees, you don't have to bear additional service charges if you do it yourself. The following are the fees and taxes LLCs in California must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in California,
| Fees/Tax | Amount to be Paid |
|---|---|
| Name Reservation Fee (online and by mail) | $10 (mail) or $20 (in person) for 60 days |
| Articles of Organisation Fee | $70 |
| Franchise Tax | $800 |
| Biennial Report (every 2 years) | $20 |
| Sales Tax | 7.25% |
In California, LLC name reservation is mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, you can do so for 60 days. It can be renewed by paying $10 (by mail) and $20 (in-person drop-off). Your LLC name will be reserved for additional days (fewer than 60 days). In some states, Name Reservation is not mandatory.
According to the Franchise Tax rule, LLCs have to pay this tax in the first year. after that, every two years. Annual Franchise Tax reports are considered to be the annual revenue report or annual report of the LLC. Read our guide on LLC costs in California for more information.
California LLC Gross Fee
California is one state that levies a fee on the gross income of the LLC in a year. Above $250,000, LLCs with any income have to pay the fee according to the rate announced by the Department of Revenue. The following table shows the annual revenue and the required fee to be paid to the CA State Authority.
| Annual Revenue | Fee to be paid |
|---|---|
| $250,000 - $499,999 | $900 |
| $500,000 - $999,999 | $2,500 |
| $1,000,000 - $4,999,999 | $6,000 |
| $5,000,000 & Above | $11,790 |
Failing to pay the estimated fee leads LLCs to pay penalties, just like the Franchise Tax. The due date for paying the LLC fee is the 15th of the 6th month after the beginning of the tax year. The due date for paying the Franchise Tax is the 15th of the 4th month after the beginning of the tax year.
What will my CA LLC actually cost me in year one, at $300,000 revenue?
In the first year, the true cost to your LLC in California includes the state filing fee (if you hired a professional, add its service fee as well), SOI fees, Franchise Tax, and gross receipts fees. Hence, the following are costs related to forming an LLC in CA in the first year, considering there is no LLC formation services hired or a registered agent hired from outside.
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State filing fee - $70
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SOI filing fee - $20
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Franchise Tax in the first year - $800
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Gross receipt fee - $900 for gross LLC income of $300,000
Total one-year cost: $1790
California Foreign LLC
If you are interested in forming a Foreign LLC in the state of California, then you need to file the Certificate of Foreign LLC with the California Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents, like the Certificate of Good Standing, etc., to the California SOS to form your foreign LLC in the state of California. To know more in detail, check out our guide on California Foreign LLC.
California LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in California. Click on the steps in this list to read the full details.
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The first thing you must do is choose a company name, which should be unique, easy to find, and available in the state.
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In California, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
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Filing a formation certificate is necessary when forming a Limited Liability Company in California. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organisation, or Certificate of Organisation.
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File Initial Statement of Information
In California, LLCs have to file the Initial Statement of Information within 90 days of LLC formation. It is a mandatory document.
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An operating agreement is not a strict requirement in California, but something encouraged when you start an LLC to avoid future conflicts.
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The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity, like a Social Security number, but for a company.
F.A.Qs
Can I file an LLC in California by myself?
If you are a resident of California, then you can file your LLC by yourself. However, it is always worth having a professional rather than doing it yourself to handle legal complexities, paperwork, and other documentation.
What is the cost of forming an LLC in California in a year?
Apart from the formation fee of $70 (domestic LLC) and $70 (foreign LLC), LLC costs in California include $20 for Biennial Reports every 2 years. LLCs are liable to pay sales tax of 7.25% and $800 Franchise Tax in the first year.
How long does it take to get an LLC in California?
It takes 3 business days (approx) to get an LLC in the state of California. This processing time can be changed based on the date of registration. You can refer to the CA SOS processing time page.
How to renew my LLC in the state of California?
Every 2 years, all the LLCs have to submit a Biennial Report and pay $20 to the California Secretary of State and renew the LLC.
What is the tax structure for an LLC in the state of California?
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose an S Corp to reduce federal tax burdens. Read more on the California Classification of LLC Tax.
In Conclusion
When it comes to forming an LLC in California. It is much simpler than other business structures. In California, starting a small business or a start-up is easy because of its diverse resources. For small budget holders, forming a limited liability company is desirable. The steps explained in this article are generic steps for starting a business in California. It is recommended to consult an attorney or service provider.