If you want to form a limited liability company (LLC) in California, you need to legally register your business with the state. In addition, you'll need to decide how you want to choose a business name, create organizational documents, register for taxes, and file initial reports to start your California business.
If you're looking to start an LLC in California, you'll need to follow these essential steps. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When you form your LLC, you'll need to select a name for your business. You should be aware of California's naming laws around LLCs.
LLC name must be distinguishable. You must choose a name for your LLC that's unique. It can't be the same as, or too similar to, the name of a domestic or foreign LLC that's registered or reserved with the California Secretary of State (SOS) records. You can check to see whether your business name is available by searching the SOS's business name database. (Cal. Corp. Code § 17701.08 (2025).)
LLC name must include an entity designator. Under California law, an LLC's name must contain either "limited liability company," "L.L.C.," or "LLC." The words "limited" and "company" can be abbreviated to "ltd." and "co." (Cal. Corp. Code § 17701.08 (2025).)
Name reservation. Before you register your business, you can reserve your business name for up to 60 days. You can reserve a business name online using bizfile Online or by mailing a Name Reservation Request form to the SOS. As of 2025, the fee to reserve a name is $10. (Cal. Corp. Code § 17701.09 (2025).)
Using a fictitious business name. You can do business under a name that's different from your LLC's legal name listed in its articles of organization. This alternative name is sometimes called a "fictitious business name," "trade name," or "DBA" (short for doing business as). If your LLC uses a DBA, you must file a fictitious business name statement with the county recorder in the county of your LLC's principal place of business. You must also publish your statement in a local newspaper once a week for four consecutive weeks and file proof of the publication with your county. Your fictitious business name statement is good for five years and can be renewed. (Cal. Bus. & Prof. Code §§ 17900 and following (2025).)
For more guidance on your LLC's name, check out the business entity names webpage of the SOS website and the SOS's business entity name publication.
Every California LLC must have an agent for service of process (usually called a "registered agent"). A "registered agent" is an individual or certified corporation that agrees to accept legal papers on the LLC's behalf—for instance, if the LLC is sued. An LLC can't serve as its own agent for service of process. The agent should agree to accept service of process on behalf of the LLC prior to designation.
Individual agents must reside in California and their street address (not a P.O. box) must be listed in the LLC's articles of organization. The agent can be a member, manager, or officer of the LLC, but doesn't need to be affiliated with the LLC.
(Cal. Corp. Code § 17701.13 (2025).)
The SOS maintains a list of private service companies (commercial registered agents) that will act as agents for service of process for a fee.
You can form a California LLC by filing articles of organization with the SOS. The articles must include:
(Cal. Corp. Code § 17702.01 (2025).)
You can file your articles online through bizfile Online. You can also hand deliver or mail in a completed Form LLC-1 to the SOS. As of 2025, the filing fee is $70.
Unlike most states, California requires every LLC to have an operating agreement. An operating agreement is an internal document that lays out how the LLC is run and managed. You don't need to file the agreement with the state.
An operating agreement governs:
(Cal. Corp. Code § 17701.10 (2025).)
Apart from being legally required, an operating agreement comes with many advantages. For example, it can help preserve your limited liability by showing that your LLC is truly a separate business entity from the owners.
If you've already formed an LLC, we offer an LLC operating agreement that you can create online.
Every California and non-California LLC registered in California must file a Statement of Information with the SOS within 90 days after filing their articles of organization.
After the initial statement, a Statement of Information must be filed every two years (biennial). The filing period is the calendar month when the original articles of organization were filed and the prior five calendar months. For example, if you filed your articles in March, you must file your biennial reports every subsequent two years between October 1 and March 31.
You must file the statement online through bizfile Online. As of 2025, the filing fee for both the initial and biennial statements is $20.
(Cal. Corp. Code § 17702.09 (2025).)
For more, read about LLC biennial report and tax filing requirements in California.
You'll need to comply with any other tax and regulatory requirements that apply to your LLC. These might include the following:
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN for your LLC only if either you elect to have your business taxed as a corporation instead of a sole proprietorship (disregarded entity) or your single-member LLC has employees. You can get an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Depending on your business activities and location, your LLC might need to obtain local and state business licenses or permits. For local licenses, check with the clerk for the city where the LLC's primary place of business is located (or county if it's in an unincorporated area). For state license information, go to CalGold on the California Office of Business and Economic Development website. For additional details, see our article on how to get a small business license in California.
Sales and employer taxes. In some cases—for example, if you'll be selling goods and collecting sales tax or if you have employees—you'll need to register with the appropriate California taxing authority. For instance, if you'll be collecting sales tax, you'll have to register with the California Department of Tax and Fee Administration. For employer taxes, register with the California Employment Development Department (EDD).
Annual minimum franchise tax. All LLCs doing business in California must pay an annual minimum franchise tax of $800 (figure as of 2025). You submit the annual tax to the FTB using Form 3522 (LLC Tax Voucher). Depending on your LLC's income, you could owe more. The LLC webpage on the FTB website has more information about LLC taxes in California, including links to the necessary forms and fee schedules.
Read our California state business income tax article for more details and guidance.
Here are some other questions you might have about your California LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2025) you might need to pay to form your LLC in California:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. All LLCs doing business in California must file a Statement of Information within 90 days of filing the Articles of Organization and every two years thereafter. You must submit these reports online along with a $20 filing fee (as of 2025). (Cal. Corp. Code § 17702.09 (2025).)
For more details, see our article on LLC biennial report and tax filing requirements in California.
Apart from statements of information, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
Yes. California requires every LLC to have an operating agreement. In addition to fulfilling this legal requirement, an operating agreement will help protect your limited liability status, prevent financial and managerial misunderstandings, and ensure that you decide on the rules governing your business instead of state law by default.
California doesn't issue a statewide general business license. However, many cities (and counties if you're not within city limits) require businesses to obtain a license to operate in the city. This license can be called a "business tax certificate" or "business registration certificate."
You might also need to get a license or permit for your business based on your business's activities. For example, you could need professional licenses, tax licenses or registrations, safety certifications, or environmental permits.
You can find extensive details about state and local regulatory requirements in our California business license article.
LLCs are considered "pass-through entities" (PTEs) by default, meaning the responsibility for paying taxes on the LLC's income passes through to the members. So, an LLC member will report and pay taxes on their share of the LLC's income on their personal tax return.
However, there are other taxing scenarios that you should be aware of. Some LLCs elect to be taxed as a corporation rather than as a partnership (a type of PTE). Alternatively, California, like many other states, allows LLCs taxed as partnerships to pay income tax at the entity level through the PTE elective tax. If you elect to have your LLC pay the PTE tax, then your LLC will pay income tax on behalf of the members (owners). You'd then claim a tax credit on your personal return for the tax already paid on your behalf by your LLC. You'll make these elections and report and pay these state taxes to the FTB.
In California, LLCs must pay an $800 annual tax to the FTB starting in the year the LLC is formed. In addition, LLCs that make more than $250,000 per year must pay an LLC fee. As of 2025,the LLC fee ranges from $900 to $11,790 and depends on your LLC's yearly income.
In addition to income tax, your LLC might be responsible for reporting and paying sales tax, withholding employee wages, and paying unemployment insurance (UI) tax and other payroll taxes.
For details and guidance on these taxes, see our article on California LLC tax filing requirements.
Yes. To do business in California, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a registered agent for service of process that's physically located in California.
To register, you must file an Application to Register a Foreign Limited Liability Company (Form LLC-5) and pay a $70 fee (as of 2025). You must include a certificate of good standing or a similar document from your home state with your application.
(Cal. Bus. & Prof. Code §§ 17708.1 and following (2025).)
For more in-depth instructions on registering your foreign LLCs in California, read how to qualify a foreign business in California.
Yes. For most formation purposes, a California single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in California are the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Under California law, LLCs typically can't be formed to provide professional services—with a few exceptions. Generally, professional services include any service that requires a professional state license. If you don't know whether your service requires a state license, see the California Department of Consumer Affairs website. (Cal. Corp. Code § 17701.04 (2025).)
Instead, most professionals must form a California professional corporation if they want to provide professional services in the state. (California doesn't recognize professional LLCs.) In some cases, certain professionals in a partnership can apply to form a limited liability partnership (LLP) in California.
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. See how to dissolve a California LLC for in-depth instructions on the dissolution process.
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