How to Form an LLC in California

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This guide to starting an LLC in California provides step-by-step instructions on filing formation documents, obtaining tax IDs, and setting up company records.


LLCs are the most popular business structure because they are inexpensive to form, provide flexibility to the owners, and are easy to run. Forming your LLC legally establishes your business, limits your personal liability, and gains tax flexibility. The following step-by-step will help you as you undertake this process.


Most California LLCs have to pay a minimum $800 yearly tax to the California Franchise Tax Board. For more information see FTB Pub 1060: Guide for Corporations Starting Business in California

Fast Facts: Your Budget and Timeline

Here is an overview of the total paperwork, cost, and time it takes to form an LLC in California. Be sure to read the final step in this guide - "Ongoing Filings" - to understand your ongoing costs to maintain a compliant California LLC.

  • Form LLC-1: Articles of Organization of a Limited Liability Company
  • Form LLC-12: Statement of Information for a Limited Liability Company
  • Operating Agreement
  • IRS Form SS-4: Obtain an EIN
  • Formation: $70 by mail or $85 in-person + optional $250-$500 preclearance service + optional $350-$500 expedited filing service
  • Initial report: $20 + optional $250-$500 preclearance service + optional $350-$500 expedited filing service

Step-by-Step California LLC Instructions

  1. Check Name Availability

    The legal name of your LLC may not conflict with any other registered name. Check availability of your desired name by conducting a name search.

    Name Search: California Secretary of State - Business Programs Division
    Name search
    Name Reservation: Optional

    The name of a limited liability company shall contain the words limited liability company, or the abbreviation L.L.C. or LLC. Limited may be abbreviated as Ltd., and company may be abbreviated as Co.
    CCC &sect17701.08

  2. Appoint a Registered Agent

    Identify the LLC’s California registered agent. This individual or company receives notice of lawsuit and other legal service for the LLC.

  3. File California Certificate of Formation

    File the articles of organization to create your limited liability company.

    Agency:California Secretary of State - Business Programs Division

    Form LLC-1: Articles of Organization of a Limited Liability Company


    Form LLC-1 FAQs

    Filing Method:

    Mail, in-person, or online.

    Agency Fee:

    $70 by mail/online or $85 in-person.


    Current state processing times or pay for preclearance and expedite services


    California Corporations Code - Title 2.5: Limited Liability Companies

    Fact Checked:6/13/19
  4. File Initial Report

    Agency:California Secretary of State - Business Programs Division

    Form LLC-12: Statement of Information for a Limited Liability Company

    Filing Method:

    Mail, in-person, or online.

    Agency Fee:



    ~1 business day online. See current processing times.


    Within 90 days of incorporation or qualification. 


    California Corp. Code § 17702.09

    Original Ink:Not required
    Notarize:Not required

    $250 penalty fee.

    • We recommend filing online.
    • Original signatures are not required.
    Fact Checked:11/2/18
  5. Establish Company Records

    Your filed articles of organization are the first document for your limited liability company records. Your LLC will generate many other official records such as your operating agreement, meeting minutes, and your EIN.

    Office supplies intended for an LLC will help you stay organized and save time. Membership certificate templates should come with your company record book. Each owner receives a membership certificate as evidence of his or her ownership in the LLC.

  6. Create the Operating Agreement

    Draft an Operating Agreement (potentially using a template) which is the governing document for the LLC. It defines the formalities of how the LLC will run itself such as holding an annual meeting. You will review and adopt the agreement at your organizational meeting.

  7. Hold the Organizational Meeting

    The first meeting of the members of the LLC is the organizational meeting. You will need your filed articles of organization and your operating agreement in order to conduct this meeting. Keep minutes of this meeting and store them in your company record book.

  8. Get a Federal Employer Identification Number (EIN)

    If your LLC has more than one member or will hire employees, it must obtain an EIN. An EIN is also often required to open a bank account.

    Agency:Internal Revenue Service (IRS)

    IRS Form SS-4

    Filing Method:

    Mail, phone, fax, or online.

    IRS fee:



    Immediately online or by phone. 4 business days by fax. 4-5 weeks by mail.


    The IRS website is only available during certain hours. Print your EIN before closing your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.

    Fact Checked:8/28/19
  9. Get California State Tax Identification Numbers/Accounts

    You will need to apply for a California Employer Identification Number if you will have employees.

    Submit to:
    State of California - Employment Development Department
    Filing method:

    To apply for a seller's permit (if your LLC collects sales tax on items sold), use tax account, and other permits and licenses:

    Submit to:
    California State Board of Equalization
    Filing method:
    Online at eReg

    California LLCs are subject to franchise and income taxes. This includes $800 minimum franchise tax. You do not need to register with the Franchise Tax Board, but you may need to start paying taxes.

    FTB Pub 1060: Guide for Corporations Starting Business in California
    More Information:
    State of California - Franchise Tax Board
  10. Consider Electing S-Corp or C-Corp Taxation

    By default, your LLC receives pass-through taxation and the vast majority of LLCs keep this tax classification. Some LLCs benefit from electing S-Corp or C-Corp tax treatment:

    • S-Corp treatment can help owner-employees who earn more than ~$75,000 per year save on self-employment taxes. File Form 2553: S-Corp Election.
    • C-Corps suffer from double taxation: the corporation pays taxes on profits then members pay taxes on their distributions. If profits exceed $250,000 per owner, you provide employee benefits, or you will re-invest most of your profit in the business, you may benefit from the low tax rates on retained earnings under C-Corp treatment. File Form 8832: C-Corp Election.
  11. Obtain Business Licenses & Permits

    To run your business legally, you must obtain applicable licenses and permits. The easiest way to navigate the wide range of federal, state, and local requirements is to search by your business type and locality using the Small Business Administration Business License & Permit look-up tool.

  12. * Ongoing Filings to Maintain Your LLC

    You must file federal and state tax returns. You must also file:

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