How to start an LLC in California

To start an LLC in California, file the Articles of Organization with the California Secretary of State ($70) once you have a name the state will accept and a registered agent there. Then write an operating agreement, get a free EIN from the IRS and keep the LLC current with the state.

Step 1: Choose a name California will accept

The name has to end with “Limited Liability Company”, “LLC” or “L.L.C.”. It also has to differ from the names already on the California Secretary of State's records, and some words need another agency's approval. Check an LLC name in California against those rules and the registered names we hold, then confirm it on the official search.

Not ready to file? A reservation holds the name: $10, for 60 days. See how to reserve an LLC name.

Step 2: Appoint a registered agent

The Articles of Organization names a registered agent: a person or company with a street address in California who receives lawsuits and official notices for the LLC during business hours. You can usually serve yourself if you live in the state, or pay a commercial agent a yearly fee.

Our sister site lists the registered agents California companies use most, with how many companies each one serves.

Step 3: File the Articles of Organization

File it with the California Secretary of State. The fee is $70. File online, or on paper. The LLC exists once the state accepts the filing.

How long it takes. Faster service: online: $350 for a 24-hour expedite, $750 same day. (The office's page.)

Step 4: Write an operating agreement

California doesn't require one (Cal. Corp. Code § 17701.10(b)), but without it the state's default rules decide how the LLC is run and how profits and votes are shared. It stays in the company's records; it isn't filed.

Make a free California LLC operating agreement and download it as a Word file.

Step 5: Get an EIN

An EIN (employer identification number) is the LLC's federal tax ID: banks ask for it to open a business account, and the LLC needs one to hire. The IRS issues it free; apply online at irs.gov once California has accepted the Articles of Organization.

Step 6: File the California LLC annual report

Fee: $20 Statement of Information (SOS) - due within 90 days of initial registration and every two years thereafter. Due: Biennial, during the applicable filing period (every two years after the initial filing). (Source: Limited liability companies statement information, sos.ca.gov.)

After formation California
Recurring report $20 every two years
State tax or fee on LLCs $800 a year minimum franchise tax
Proof of good standing Certificate of Status, $5

Missing the recurring filing is the most common way an LLC loses its good standing, and in time its existence. On our sister site, look up an LLC's status or see how to get a California certificate of good standing.

What it costs to start an LLC in California

State fee Amount
Formation filing $70
First report (the Statement of Information) $20
Minimum franchise tax (due in the first year) $800
First year, state fees $890
Each year after $810

Over five years, California's state fees come to $4,130. These are state fees only: a commercial registered agent, a publication notice and income taxes are extra. Compare every state's fees, with the options to reserve the name or file faster.

Sources

How to start an LLC in California

  1. Choose a name California will accept and check it against the California Secretary of State's records.
  2. Appoint a registered agent with a street address in California.
  3. File the Articles of Organization with the California Secretary of State ($70).
  4. Write an operating agreement.
  5. Get a free EIN from the IRS.
  6. Keep up with the recurring filings and fees.

Common questions

How much does it cost to start an LLC in California?

$70 to file the Articles of Organization. The state's fees come to $890 in the first year and $810 a year after that; a registered agent service or a newspaper notice costs extra.

How long does it take to start an LLC in California?

The California Secretary of State doesn't post a standard time. Faster service: online: $350 for a 24-hour expedite, $750 same day.

Do I need an operating agreement in California?

California doesn't require one (Cal. Corp. Code § 17701.10(b)), but it's the document that says who owns the LLC and how it's run; banks and partners often ask for it.

Can I start an LLC in California online?

Yes. The California Secretary of State takes the Articles of Organization online, for $70.

When is the California LLC annual report due?

Biennial, during the applicable filing period (every two years after the initial filing).

Does California require an annual report for LLCs?

Yes. California's recurring filing: $20 every two years.

Was this page helpful?