Start a California LLC with steps for naming, registered agents, Articles of Organization, and an operating agreement. Get filing deadlines, fees, tax basics, and permit pointers, including the $800 franchise tax and biennial Statement of Information.
By Brad Nakase, Attorney
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Starting an LLC in California means making things official with the state before you do anything else. You’ll have to register the business, pick a name that’s allowed, put your basic paperwork in place, and handle tax registrations and early filings. It’s a few steps, but they’re all part of getting your business legally set up.
If California is where you want to form your LLC, there’s a clear process you’ll need to follow from start to finish. And if you’re curious about how this works, our guide on starting an LLC breaks it all down.
One of the first questions new business owners ask is, “How do I create an LLC in California and pick the right name?” Before anything else, you need a business name. California has a few rules here, and they matter.
It has to be unique. Your LLC’s name can’t match—or be confusingly close to—another business already registered or reserved in California. This includes both in-state and out-of-state LLCs on file with the Secretary of State. The safest move is to run a name search in the SOS business database before you get attached to anything.
It must clearly say it’s an LLC. California requires the name to include “Limited Liability Company,” “LLC,” or “L.L.C.” You’re allowed to shorten “limited” to “ltd.” & “company” to “co.” It should be clear what type of business you’re running.
You can reserve the name if you’re not ready yet. If you’ve found a name you like but aren’t ready to file your LLC, you can lock it in for up to 60 days. Name reservations can be done online through BizFile Online. It can also be done by mailing a request to the Secretary of State. The fee is $10.
You don’t have to operate under the legal name. Your LLC can legally do business under a different name than the one listed in your Articles of Organization. This is often called a DBA, trade name, or fictitious business name. If you go this route, you’ll need to file a fictitious business name statement with the county where your main office is located. California also requires you to publish that name in a local newspaper. It must be done once a week for four straight weeks. Proof of publication must be filed after that. The filing lasts five years & can be renewed.
Bottom line: choose carefully. Your name is the first thing customers will associate with your business.
California requires every LLC to name a registered agent. It is also known as an agent for service of process. This is the person or company responsible for receiving legal documents on behalf of your business. It includes things like lawsuit papers, court notices, or official state correspondence.
Your LLC can’t act as its own agent. The agent has to be a real person or a qualified business that has agreed in advance to take on this role.
If you choose an individual, they must live in California and provide a physical street address. No P.O. boxes. That address will be listed in your Articles of Organization. The agent can be you, a business partner, a manager, or even someone not connected to the company at all—as long as they meet the requirements and are reliable.
You can also hire a commercial registered agent. These are professional service companies that handle legal notices for a fee. The California Secretary of State keeps a list of approved providers if you want to go that route.
Whoever you choose needs to be available during normal business hours. They must take this responsibility seriously. Missing legal paperwork can turn into a big problem.
If you’ve been thinking, “How do I create an LLC in California and make it legal?”, this is the step that puts your business on the books. To officially create your California LLC, you’ll need to file Articles of Organization with the Secretary of State. This filing is what legally brings your business into existence.
The form asks for some basic but important details, including:
You can submit the Articles of Organization online using the state’s BizFile Online system, which is usually the fastest option. If you prefer paper filing, you can also mail or hand-deliver Form LLC-1 to the Secretary of State.
California charges a $70 filing fee. Once this step is done and accepted, your LLC is officially on the books.
Every LLC is required to have an operating agreement in California. You are not mandated to file it with the state. Think of it as the rulebook for your business. It sets out how your LLC will function and how decisions will be made.
An operating agreement typically covers:
Having a clear operating agreement is critical. It will show that your LLC is a separate entity from its owners. It helps prevent misunderstandings between members. If your question is, “How do I create an LLC in California and protect my liability?”, the operating agreement is your safeguard.
All California LLCs and foreign LLCs registered to do business in California must file a Statement of Information with the Secretary of State. It has to be done within 90 days of submitting their articles of organization.
You’ll need to update this Statement of Information every two years. This is called a biennial report. The filing window is based on the month you originally filed your articles, plus the five months before that. For example, if your LLC was filed in March, your biennial report must be submitted anytime between October 1 and March 31 every other year.
You can file these reports online using BizFile Online. The fee for both the initial and biennial filings is $20. Many ask, “How do I create an LLC in California and stay compliant every two years?” Filing these reports keeps your LLC in good standing.
Getting your name on paper is only half the battle. Now you’ve got to deal with the tax man and the local inspectors to make sure they don’t shut you down before you even start. It’s mostly just busywork, but you can’t ignore it.
This is the part where you get all your “permission slips” in order. California is big on paperwork, so just take it one agency at a time.
The “To-Do” List:
The Short Version: Get your EIN first. Check with your city clerk for local permits. And keep that $800 in the back of your mind—the state always comes for it.
1. Do I need to create a limited liability company in California?
If you’re just starting your business, an LLC is worth considering. Even if you’ve been running things as a sole proprietor, it can offer real protection.
An LLC separates your personal assets from your business. If the business owes money or faces a lawsuit, your savings, car, and home aren’t automatically at risk.
It also gives you flexibility. You decide who owns it, who manages it, and how it’s taxed. You aren’t locked into one rigid structure.
2. How much will it cost to establish an LLC in California?
Let’s break it down.
Filing your Articles of Organization with the Secretary of State will cost $70. That’s the big one.
If you want to reserve your LLC name first, it’s $10. Doing it in person? Add another $10 for handling.
Every LLC also has to file a Statement of Information. The first one is due 90 days after you form your LLC. Then, every two years after that. Each filing costs $20.
You can do all this yourself. It’s cheaper that way. But the forms are confusing. One small mistake, and it can slow things down.
Lawyers can help. But they can charge hundreds, even thousands.
Another option: an online LLC formation service. They handle the paperwork, so you don’t have to worry about it.
3. Are LLCs subject to any additional maintenance requirements?
Yes. Beyond filing your Statements of Information, your LLC has other responsibilities. You’ll need to pay taxes—local, state, and federal.
Some businesses also need licenses or permits. General ones, special ones, depending on what you do. And most of these have to be renewed from time to time. Keeping track of all this is on you. It’s how your LLC stays in good standing.
There’s also something called the BOI report—beneficial ownership information. All LLCs had to file it with FinCEN (U.S. Treasury unit). The rules changed in March 2025. Now, only companies formed outside the U.S. have to file. If your LLC is U.S.-based, you don’t need to worry about it anymore.
4. Does my California LLC have to submit a report every two years?
Yes. Every LLC in California has to file a Statement of Information. The first one is due within 90 days of forming your LLC. After that, you file it every two years.
You submit it online, and there’s a $20 fee. It’s a simple step, but skipping it can get your LLC into trouble.
5. Does my California LLC require an operating agreement?
Yes. California law requires every LLC to have one.
An operating agreement isn’t just paperwork. It helps protect your limited liability. It sets clear rules for managing money and making decisions. Without it, state law fills in the gaps. With it, you decide how your business runs.
6. Does California require a business license?
California doesn’t issue a general business license. But most cities (some counties if you’re outside city limits) will want you to have one. It’s usually called a “business tax certificate” or “business registration certificate.”
Your type of business might need other licenses or permits. Could be professional licenses, tax registrations, safety certificates, & environmental permits. It depends on what you do.
7. Are there business taxes I must pay?
By default, LLCs are “pass-through entities” (PTEs). That means the income of the LLC passes through to the members. You report your share of the LLC’s income on your personal tax return and pay taxes there.
But it’s not always that simple. Some LLCs choose to be taxed like a corporation instead of a partnership. California also lets LLCs taxed as partnerships pay income tax at the entity level through the PTE elective tax. If you pick that option, the LLC pays the tax on your behalf, and you get a credit on your personal return. All of this is reported and paid to the Franchise Tax Board (FTB).
Every California LLC has to pay an $800 annual tax to the FTB starting the year it’s formed. On top of that, LLCs making more than $250,000 a year pay an extra LLC fee. The fee ranges from $900 to $11,790, depending on your income.
And there’s more. Your LLC may also need to collect and pay sales tax, withhold employee wages, and pay unemployment insurance and other payroll taxes. It depends on what your business does and who you employ.
8. Can a foreign LLC operate in California?
Yes. Any LLC formed outside California—called a “foreign LLC”—must register with the Secretary of State to operate in the state. Your foreign LLC also needs a registered agent located in California to accept legal documents.
You file an Application to Register a Foreign Limited Liability Company (Form LLC-5). Pay a $70 fee. You have to submit a certificate of good standing (or similar proof). You can get it from your home state.
9. Can I create a one-member LLC in California?
Yes. Single-member LLCs are treated the same as multi-member LLCs for purposes of formation. The steps to create one are identical to those listed above.
Single-member LLCs have better flexibility. Filing taxes is easier. For more details, check our article on how single-member LLCs pay federal income tax.
10. Can I create a professional LLC in California?
Not usually. California doesn’t generally allow LLCs to provide professional services—services that require a state license—though there are some exceptions. If you’re unsure whether your service requires a license, check the California Department of Consumer Affairs website.
Most professionals must form a professional corporation to offer licensed services in California. Certain professionals in a partnership may be able to form a limited liability partnership (LLP) instead. California does not officially recognize professional LLCs.
Starting an LLC in California takes a few steps, but it’s doable. First, pick a name that’s allowed, then choose a registered agent. File your Articles of Organization, draft an operating agreement, and handle your initial and biennial reports. Don’t forget taxes—state, federal, sales, payroll—and the $800 minimum franchise fee. There’s paperwork, yes. But it’s what keeps your personal assets separate from your business.
Single-member or multi-member, California or foreign, the rules are there. Follow them. That’s the key. You have three options: use any online service, get a consultant’s assistance, or do it yourself. Whatever works.
Once the LLC is official, your focus moves to running your business. The forms and filings are behind you. Now you can grow, sell, create, hire—whatever your business is meant to do. At least now, it’s on solid ground.
Have a quick question? We answered nearly 2000 FAQs.
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