How to Form an LLC in California

Learn the steps to form an LLC in California – from choosing your name to filing your Articles of Organization. $1 + $70 state fee. Start today.

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California LLC at a glance

Filing fee: $70 (Articles of Organization)
Processing time: Typically 2-3 business days online through bizfile Online; the state no longer accepts LLC formations by mail
State agency: California Secretary of State
Statement of Information due: Within 90 days of formation, then every 2 years ($20 each). Missing it triggers a $250 penalty.
State tax rate: Pass-through income is taxed at personal rates of 1%-13.3% and the statewide base sales tax is 7.25%; every LLC also owes an $800 annual franchise tax

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How to form an LLC in California

Forming an LLC in California takes 5 steps: choose and check your business name, appoint a Registered Agent with a physical California address, file Articles of Organization online through bizfile Online, draft an operating agreement, and get an Employer Identification Number (EIN) from the IRS. The state filing fee is $70.

Why form an LLC in California

California is the largest economy in the country — no other state offers the same access to customers, talent, and investors. An LLC gives you personal liability protection and pass-through taxation without the administrative overhead of a corporation — a combination that works well for most California entrepreneurs.

California’s costs run higher than most states — every LLC pays an $800 annual franchise tax regardless of income — but the paperwork itself stays manageable: the $70 filing fee is on the low end nationally, the Statement of Information is due only every 2 years after the initial filing, and there’s no statewide general business license to renew.

Step 1: Choose your LLC name

California doesn’t require you to reserve your name before filing — you simply claim it when you file your Articles of Organization. If you’re not ready to file yet, you can optionally reserve a name through the Secretary of State’s bizfile Online portal. The fee is $10, and the reservation holds your name for 60 days.

Your LLC name must be distinguishable from other registered businesses in California and must include a designator like “Limited Liability Company,” “LLC,” or “L.L.C.” It also can’t include words like “bank,” “trust,” “insurance,” or “corporation.” Check the Secretary of State’s business search before you file to avoid a rejection.

Step 2: Appoint a registered agent

Every California LLC must have a registered agent — the state calls it an agent for service of process — a person or registered corporate agent designated to receive legal notices and government documents on behalf of the business. The agent must have a physical street address in California (a P.O. box doesn’t count) and be available during regular business hours.

You can serve as your own registered agent if you’re a California resident with a physical street address and can be there during business hours. Many business owners use a professional registered agent service instead — it keeps your personal address off public records and ensures someone is always available to receive documents.

Step 3: File your Articles of Organization

The Articles of Organization is the document that legally creates your California LLC. You file it with the California Secretary of State through the bizfile Online portal — as of 2025, the state no longer accepts LLC formations by mail. Standard online processing typically takes 2-3 business days, with expedited options available for an extra fee.

The Articles must include your LLC’s name, its business address, your registered agent’s name and California street address, and whether the LLC will be member-managed or manager-managed. The purpose statement is standard language covering any lawful activity. The state filing fee is $70.

Step 4: Create an operating agreement

California is one of the few states that actually requires LLCs to have an operating agreement — though you don’t file it with the state. It’s the internal document that defines how your LLC is managed — who owns what, how profits are distributed, and how decisions get made. Without a written one, California’s default LLC statutes fill in the gaps, which may not reflect what you actually want.

Your operating agreement should specify whether the LLC is member-managed or manager-managed. In a member-managed LLC, all owners share day-to-day authority. In a manager-managed LLC, a designated manager handles operations while other members retain economic rights. A written agreement is the version that holds up when disputes arise.

Step 5: Get your EIN

An Employer Identification Number (EIN) is a 9-digit federal tax ID issued by the IRS. Your California LLC needs one to open a business bank account, hire employees, and file federal taxes. Applying online at irs.gov is free and issues your EIN immediately after you complete the application.

To use the IRS online application, the responsible party must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and the business must have its principal place of business in the United States. The IRS does not charge a fee for issuing an EIN.

Ongoing compliance in California

California LLCs file a Statement of Information with the Secretary of State: an initial one within 90 days of formation, then a new one every 2 years after that. Each filing costs $20 and is submitted through bizfile Online. Missing the deadline triggers a $250 penalty and can eventually get your LLC suspended.

Every California LLC also owes the Franchise Tax Board an $800 annual franchise tax — the first payment is due by the 15th day of the 4th month after formation, then by April 15 each year. LLCs with California gross receipts of $250,000 or more pay an additional fee ($900 to $11,790), estimated by June 15, and LLCs file a Form 568 return annually.

Frequently Asked Questions

The required California state fee is $70 to file the Articles of Organization with the Secretary of State. Every LLC also files a $20 Statement of Information within 90 days of formation and pays an $800 annual franchise tax to the Franchise Tax Board, and reserving your name before filing is optional at $10. There’s no additional state fee to get your EIN; the IRS issues EINs for free.

Yes. California allows a single person to form and own an LLC – this is called a single-member LLC. You can complete the Articles of Organization filing online through bizfile Online without an attorney. You’ll still need to appoint a registered agent with a physical California address, but that can be yourself if you qualify.

No. California charges a $70 Articles of Organization fee – that’s a required state fee you can’t avoid, and neither is the $800 annual franchise tax. What you can avoid is paying extra for formation help. We handle your California LLC filing for $1; you only pay the required state fees.

Not by that name – California uses a Statement of Information instead. New LLCs file an initial Statement of Information ($20) within 90 days of formation, then a new one every 2 years. A $250 penalty applies if you miss the deadline. Separately, every LLC pays the $800 franchise tax to the Franchise Tax Board each year.

Yes, every California LLC is required to have a registered agent – the state calls it an agent for service of process. A registered agent is a person or entity that receives legal notices and official government documents on behalf of your LLC. The agent must have a physical street address in California (not a P.O. box) and be available during regular business hours. You can serve as your own registered agent or use a professional service.

The mistakes that come up most often are missing the initial Statement of Information due within 90 days of formation, assuming the first-year $800 franchise tax is still waived (that waiver expired at the end of 2023), overlooking the June 15 estimated fee once gross receipts reach $250,000, using a P.O. box for the registered agent address (not allowed), and not having a written operating agreement. A lot of business owners also lose track of the 2-year Statement of Information cycle because they expect an annual filing instead.

Online filings through bizfile Online are typically processed in 2-3 business days – and as of 2025, online is the only option, since the state no longer accepts LLC formations by mail. Expedited processing is available for an extra fee if you need 24-hour or same-day approval. If speed matters, file early in the week and skip the optional name reservation.

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