🌴 How to Start an LLC in California – 2025 Step-by-Step Guide
Learn how to start an LLC in California in 2025 with our full guide. Covers filing fees, steps, Articles of Organization, taxes, and compliance tips.
🤔 Why Form an LLC in California?
California is home to over 4 million small businesses. A California LLC offers legal liability protection, flexible taxation, and easier maintenance compared to corporations.
This guide will walk you through how to start an LLC in California—from choosing a name to staying compliant with state laws.
| Benefit | Description |
|---|---|
| 🛡️ Strong Legal Protections | LLCs protect personal assets from business liabilities |
| 🔍 Name Recognition | California LLC gives credibility and trust to customers |
| 📈 Access to Investors | Easier to secure funding than sole proprietorships |
| 💻 Online Filing System | Fast and digital-friendly business filing via bizfile |
| 📜 Flexible Tax Options | Choose your tax treatment—default or elect S-Corp/C-Corp |
🧭 Step-by-Step: Forming Your California LLC
1. 🏷️ Choose a Name for Your California LLC
Your LLC name must be:
Unique across all registered California entities
Include “Limited Liability Company,” “LLC,” or “L.L.C.”
Not contain restricted words like “bank,” “insurance,” or misleading terms
Use the California Business Search Tool to confirm name availability.
2. 🧑💼 Appoint a Registered Agent in California
A Registered Agent accepts legal documents on behalf of your LLC.
Must be a California resident or a business authorized to operate in CA
Must have a physical street address in California (no PO boxes)
Must be available during normal business hours
✔️ You may serve as your own agent, or use a registered agent service.
3. 📄 File the California Articles of Organization (Form LLC-1)
Submit Form LLC-1 to the California Secretary of State.
Filing Fee: $0 (yes, waived as of 2021 under SB 276 until further notice)
Processing Time: 5–10 business days (expedited options available)
Where to File: Online at bizfileonline.sos.ca.gov
4. 🧾 File Statement of Information (Form LLC-12)
You must file Form LLC-12 within 90 days of formation.
Lists members, managers, and addresses
Must be updated every 2 years
Filing Fee: $20
5. 📘 Create a California LLC Operating Agreement
Though not required by the state, an Operating Agreement:
Documents internal rules and structure
Helps prevent disputes between members
Protects your LLC’s limited liability status
📌 Strongly recommended, especially for multi-member LLCs.
6. 🆔 Apply for an EIN from the IRS
You’ll need an EIN (Employer Identification Number) to:
Hire employees
Open a business bank account
File federal and California taxes
🔗 Apply for free at irs.gov.
7. 💵 Pay the California LLC Annual Tax
Every LLC must pay:
$800 Annual Franchise Tax (due every year—even in your first year)
Additional Gross Receipts Fee if your LLC earns over $250,000
👉 Pay to the California Franchise Tax Board (FTB) using Form 3522.
🔍 People Also Ask
What is the cost of starting an LLC in California?
Starting an LLC in California costs $70 for the Articles of Organization, $20 for the Statement of Information, and a mandatory $800 annual franchise tax.
How long does it take to form a California LLC?
If filed online, processing takes 5–10 business days. In-person or mail filings can take longer.
💰 California LLC Filing & Maintenance Costs (2025)
| Requirement | Cost |
|---|---|
| Articles of Organization (LLC-1) | $0 |
| Statement of Information (LLC-12) | $20 |
| Annual Franchise Tax | $800 |
| Registered Agent (optional) | ~$50–$150 |
| EIN from IRS | Free |
| Operating Agreement (DIY) | Free |
📬 California Secretary of State Contact Info
Website: sos.ca.gov
Business Programs Division: (916) 657-5448
Address: 1500 11th Street, Sacramento, CA 95814
Online Portal: bizfileonline.sos.ca.gov
❓ FAQs - California LLC
1. How much does it cost to start an LLC in California?
The Articles of Organization filing fee is currently waived ($0). However, you must pay an $800 annual franchise tax
2. Do I have to pay $800 every year for a California LLC?
Yes. All active LLCs must pay the $800 tax annually, including the first year.
3. Can I file a California LLC online?
Yes, use bizfileonline.sos.ca.gov to file online.
4. Do I need a registered agent in California?
Yes. A registered agent is legally required and must have a CA address.
5. How long does it take to form a California LLC?
Typically 5–10 business days. Expedited processing is available.
6. Is an Operating Agreement required in CA?
No, but it’s highly recommended to protect your LLC’s structure.
7. What taxes does a California LLC pay?
Minimum $800 annual franchise tax, and possibly a gross receipts fee if over $250,000 in revenue.
8. Can I use my home address for an LLC in California?
Yes, but it becomes part of public record.
9. Do I need a business license in California?
Yes, most cities/counties require a business license in addition to state LLC filings.
10. What is Form LLC-12 in California?
The Statement of Information form that must be filed within 90 days of formation and biennially thereafter.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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- +1 (646) 347-3833
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