How to Form an LLC in California

Step 1: Choose and check your LLC name

California LLC names must include “Limited Liability Company,” “LLC,” or “L.L.C.” Check availability via the California Secretary of State’s bizfile Online business search. Optional: reserve your name for 60 days for $10.

Step 2: Appoint an Agent for Service of Process

California calls the registered agent the “Agent for Service of Process.” The agent must be either a California resident with a physical street address or a corporate agent registered with the SOS. PO Boxes are not allowed.

Step 3: File Articles of Organization (Form LLC-1)

File Form LLC-1 online via bizfile, by mail, or in person. The filing fee is $70. Online filings are processed in approximately 5 business days; expedited 24-hour processing is available for $350.

Step 4: File the initial Statement of Information (Form LLC-12)

Within 90 days of forming, every California LLC must file Form LLC-12 (Statement of Information) and pay $20. The Statement is then required every two years for LLCs.

Step 5: Get an EIN from the IRS

Apply for an Employer Identification Number for free through IRS.gov. EINs issue immediately for online applicants with a US Social Security Number or ITIN.

Step 6: Draft an Operating Agreement

California Corporations Code § 17701.02(s) requires every California LLC to adopt an operating agreement — oral, written, or implied — though it is not filed with the state. Single-member LLCs still need one to preserve liability protection.

Step 7: Pay the $800 annual franchise tax

California imposes an $800 minimum annual franchise tax on every LLC, due to the Franchise Tax Board (FTB) by the 15th day of the 4th month after formation, then annually thereafter. The first-year exemption from AB 85 expired in 2024.

Step 8: Comply with local licensing

Check city and county business license requirements wherever your LLC operates. Most California cities require a local business tax certificate even for online businesses with a home address in the city.