How to Form an LLC in California

California offers convenient online filing services for LLC formation. To form an LLC in California, you must file the Articles of Organization (Form LLC-1) with the California Secretary of State.
The state filing fee is $75, and online filings are typically approved within 1–2 business days.

Follow the seven simple steps below to register your California LLC successfully.

1. Check Name Availability (and Reserve if Needed)

Before filing your LLC, make sure your desired business name is available using the california business entity search
👉 https://bizfileonline.sos.ca.gov/search/business

Search for your preferred name to ensure it isn’t already taken. California requires every LLC name to be unique and distinguishable from existing entities.

If you’re not ready to file yet, you can reserve your business name for future use by submitting a name reservation request online. This is also recommended if you plan to expand your LLC into multiple states later—reserve your name in each state you plan to operate.

2. Appoint a Registered Agent

Every LLC in California must designate a Registered Agent with a physical street address in California (P.O. Boxes are not accepted).

Your Registered Agent will receive official documents, tax notices, and legal correspondence on behalf of your LLC.

You can act as your own agent if you live in California, assign a trusted contact, or hire a professional registered agent service if you are a non-resident.

3. Prepare and Submit the Articles of Organization

To officially create your LLC, file the Articles of Organization (Form LLC-1) with the California Secretary of State.
You can complete this online using the official business portal:
👉 https://bizfileonline.sos.ca.gov

Steps to file:

• Select “Limited Liability Company (LLC)” as your business entity type.

• Enter your LLC name, business address, and Registered Agent information.

• Indicate whether your LLC is member-managed or manager-managed.

• Review and confirm the information.

• Pay the $75 state filing fee and submit your application.

After submission, you’ll receive a confirmation and receipt via email. Keep these documents for your records.

4. Save Your Confirmation and Payment Receipt

Once you file your Articles of Organization, download or print:

• The filing confirmation

• The document/order number

• The payment receipt

Store these safely (both digitally and physically). You’ll need them for any future inquiries or verifications with the Secretary of State.

5. Obtain an EIN from the IRS

After your LLC is approved, apply for an Employer Identification Number (EIN) from the IRS.
You can do this free of charge on the IRS website:
👉 https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

The process takes only a few minutes, and you’ll receive your EIN confirmation letter instantly in PDF format.
(Note: Always wait until your LLC is approved before applying for an EIN.)

6. Draft an Operating Agreement (Recommended)

California law requires every LLC to have an Operating Agreement, though it does not need to be filed with the state.

This document defines:

• Ownership percentages

• Management structure (member vs. manager-managed)

• Roles and responsibilities

• Profit/loss distribution

• Rules for adding or removing members

• Dissolution procedures

Even if you are a single-member LLC, an Operating Agreement is vital for protecting your limited liability status and maintaining clear business structure.

7. File Required Federal and State Reports (BOI / FinCEN and State Filings)

New federal regulations require most LLCs to file Beneficial Ownership Information (BOI) with FinCEN.
You must file your BOI report within 30 days of LLC formation in 2025. Visit https://www.fincen.gov/boi for up-to-date filing requirements.

Additionally, every California LLC must file:

• Statement of Information (Form LLC-12) – due within 90 days of formation.

• Annual Franchise Tax – a minimum $800 payment due each year to the California Franchise Tax Board (FTB).

Failure to pay the franchise tax may result in penalties or suspension of your LLC.

✅ Final Thoughts
Forming an LLC in California is straightforward when you follow the correct steps. With a $75 filing fee and annual $800 franchise tax, compliance is crucial to maintaining your LLC’s good standing.
Once your LLC is approved, don’t forget to complete your EIN application, BOI report, and state filings to stay fully compliant.