Form a California LLC

Go to bizfileonline.sos.ca.gov and click "Business Search." Enter your desired LLC name. California requires your name to be distinguishable from existing registered entities.

Your LLC name must end with "Limited Liability Company," "LLC," or "L.L.C." — California also allows "Ltd. Liability Co." but not abbreviations like "LC."

You can reserve a name for 60 days by filing a Name Reservation Request ($10) through bizfileOnline, but this is optional.

California calls the registered agent an "Agent for Service of Process." Your agent must have a physical street address in California — no P.O. boxes.

You can designate an individual (including yourself if you have a California address) or a registered corporate agent. Professional services cost $50–$200/year.

Go to bizfileonline.sos.ca.gov, create an account (or log in), and select "LLC — Articles of Organization (LLC-1)." The form asks for: LLC name, business address, agent for service of process name and address, and management structure.

The filing fee is $70. You can pay by credit card or eCheck online. Standard processing takes 5–7 business days. Expedited processing: 24-hour for $350 extra or same-day for $750 extra.

You can also file by mail by downloading Form LLC-1 from the Secretary of State's website. Mail filings take 2–4 weeks.

Within 90 days of formation, you must file a Statement of Information (Form LLC-12) with the Secretary of State. This is a separate $20 filing that provides additional details about your LLC.

File online at bizfileonline.sos.ca.gov. The form asks for: principal office address, mailing address, agent for service of process, manager/member names and addresses, and the type of business.

After the initial filing, you must file a new Statement of Information every 2 years (biennial). Missing the deadline triggers a $250 penalty.

California is one of the few states that legally requires an operating agreement (Cal. Corp. Code § 17701.10). It doesn't need to be filed with the state — keep it with your LLC records.

Your operating agreement should cover ownership percentages, capital contributions, profit/loss allocation, management structure, voting rights, transfer restrictions, and dissolution procedures.

Apply for a free EIN at irs.gov. Select "Limited Liability Company" and "California" as the state of formation. The online process takes about 5 minutes and issues your EIN immediately.

California imposes an $800 annual minimum franchise tax on all LLCs, due by the 15th day of the 4th month after your LLC's formation date. This means if you form on January 10, the first $800 is due by April 15.

Pay using Form 3522 (LLC Tax Voucher) at ftb.ca.gov. The $800 tax applies even if your LLC earns zero revenue. The previous first-year exemption (AB 85) expired after 2023 — LLCs formed in 2024+ pay $800 in year one.

LLCs with California-sourced income over $250,000 also pay an additional LLC fee: $900 (income $250K–$499K), $2,500 ($500K–$999K), $6,000 ($1M–$4.99M), or $11,790 ($5M+).

If your LLC sells taxable goods or services, register for a Seller's Permit with the California Department of Tax and Fee Administration (CDTFA) at cdtfa.ca.gov. Registration is free.

California's state sales tax is 7.25%, with local add-ons bringing combined rates to 8.25–10.75% depending on location.

If you have employees, register with the Employment Development Department (EDD) for state income tax withholding, unemployment insurance, and state disability insurance.

Set recurring reminders for CA tax and filing deadlines: the $800 franchise tax (due annually by the 15th of the 4th month), and the biennial Statement of Information (every 2 years).