How to Form an LLC in California

Forming a California LLC involves filing Articles of Organization with the Secretary of State, designating an agent for service of process, and meeting several ongoing compliance requirements. Here is what you need to know.

Step 1: Choose a Business Name

Your LLC name must:

• Include "Limited Liability Company" or an abbreviation (LLC, L.L.C.)
• Be distinguishable from other entities registered with the California Secretary of State
• Not include words that imply it is a different entity type (Corporation, Corp., Inc.)

Check name availability through the Secretary of State's business search at bizfile.sos.ca.gov. California does not offer formal name reservations for LLCs, so file your Articles of Organization promptly once you confirm availability.

Step 2: Designate an Agent for Service of Process

California requires every LLC to have an agent for service of process — a person or corporation authorized to receive legal documents on behalf of the business. The agent must have a physical street address in California.

You will list your agent on the Articles of Organization. If you sign up with us, we provide the name and address to use on the form.

Important California-specific rules:

• An LLC cannot serve as an agent for service of process
• The LLC being formed cannot be its own agent
• Corporate agents must have a Section 1505 Certificate on file

Step 3: File Articles of Organization

File Form LLC-1 (Articles of Organization) with the California Secretary of State.

• Online filing: Through bizfile at bizfile.sos.ca.gov
• Filing fee: $70
• Processing: Online filings are typically processed within a few business days

The Articles of Organization require:

• LLC name
• Agent for service of process name and address
• Whether the LLC is managed by one manager, more than one manager, or all members
• The LLC's purpose (a general statement is acceptable)

Step 4: File the Initial Statement of Information

Within 90 days of formation, you must file a Statement of Information (Form LLC-12) with the Secretary of State. This confirms your agent, principal office address, mailing address, and manager/member information.

After the initial filing, Statements of Information are due every two years.

Step 5: Create an Operating Agreement

California law does not require you to file an operating agreement with the state, but having one is strongly recommended. An operating agreement defines:

• Ownership percentages and capital contributions
• Management structure and decision-making authority
• Profit and loss distribution
• What happens if a member leaves or the LLC dissolves

The operating agreement is an internal document — it stays with your business records.

Step 6: Obtain an EIN

Apply for an Employer Identification Number (EIN) from the IRS. This is free and can be done online at irs.gov. You need an EIN to:

• Open a business bank account
• File federal and state tax returns
• Hire employees

Ongoing California LLC Requirements

Franchise Tax: California imposes a minimum $800 annual franchise tax on most LLCs, payable to the Franchise Tax Board. LLCs formed on or after January 1, 2024 are exempt for their first taxable year. Additionally, LLCs with total income over $250,000 pay an LLC fee ranging from $900 to $11,790.

Statement of Information: File biennially (every two years) with the Secretary of State.

Agent for Service of Process: Maintain a valid agent continuously. If your agent resigns or your information changes, update it promptly.

Business Licenses: Depending on your location and industry, you may need local business licenses or permits.

California LLC Costs Summary

Item	Cost
Articles of Organization (Form LLC-1)	$70
Statement of Information (Form LLC-12)	Check current SOS fee schedule
Annual Franchise Tax (minimum)	$800/year
Agent for Service of Process (our service)	$99/year
EIN	Free

Get Started — $99/year

Need an agent for service of process for your new California LLC? Sign up today.