Form an LLC in California
Everything you need to know about forming an LLC in California. Filing fees, requirements, timeline, and step-by-step guidance.
Want this turned into your personalized LLC roadmap for California?
See it free, no account needed. Save it later to track every step, deadline, and what comes after forming an LLC.
How to File
Choose a Business Name
Select a unique name ending in 'LLC,' 'L.L.C.,' or 'Limited Liability Company' that is distinguishable from existing California entities. Search the California Secretary of State business name database to confirm availability before filing.
30-60 minutes
Reserve Your Business Name (Optional)
File a Name Reservation Request (Form NR-1) with the California Secretary of State to reserve your chosen name for up to 60 days while you prepare your formation documents. The reservation fee is $10.
15-30 minutes
Designate a Registered Agent
Appoint a registered agent — an individual or registered corporate agent service — with a physical California street address (P.O. boxes not allowed) who is available during normal business hours to receive legal and official documents on behalf of the LLC.
15-30 minutes
File Articles of Organization
Submit Form LLC-1 (Articles of Organization) to the California Secretary of State online, by mail, or in person, along with the $70 filing fee. The form requires the LLC name, business address, registered agent information, and management structure.
30-45 minutes
What's Next After Filing
Once your LLC is officially formed, you'll want to complete these important steps:
- •Draft an Operating Agreement — California law (Corp. Code §17701.10) requires LLCs to adopt a written or oral operating agreement. A written agreement is strongly recommended and should detail ownership percentages, member roles, profit distribution, voting rights, and dissolution procedures.
- •Obtain EIN and Open a Bank Account — Apply for a Federal Employer Identification Number (EIN) from the IRS at no cost — required for tax filing, hiring employees, and opening a business bank account. Use the EIN to open a dedicated business checking account to maintain liability protection.
- •File Statement of Information and Pay Franchise Tax — Submit the Statement of Information (Form LLC-12) within 90 days of formation and biennially thereafter, with a $20 filing fee. Pay the $800 minimum annual franchise tax to the California Franchise Tax Board by the 15th day of the 4th month after formation.
Advantages
- ✓Personal liability protection shields members' personal assets from business debts and legal judgments
- ✓Flexible management structure allows member-managed or manager-managed arrangements without corporate formalities like a board of directors
- ✓Pass-through taxation by default avoids double taxation, with option to elect S-Corp or C-Corp tax treatment for potential savings
- ✓Single-member LLCs are permitted, making it accessible to solo entrepreneurs while maintaining liability protection
Considerations
- •California's mandatory $800 annual minimum franchise tax applies regardless of revenue or profitability, making it costly for early-stage or inactive businesses
- •Additional gross receipts fee (up to $11,790/year) applies to higher-revenue LLCs, creating a significant tax burden compared to many other states
- •Self-employment taxes apply to active members on their share of profits, as California does not allow guaranteed payment reclassification workarounds available in some other structures
Annual Obligations
What OpenChamber Does
We don't file paperwork for you — we guide you through doing it yourself, which saves money and helps you understand your business from day one.
Personalized Checklist
Every task you need, organized by priority and tailored to California.
Vetted Professionals
When you need help, we connect you with professionals we trust.
Progress Tracking
Never lose track of where you are or what's next.
Track Your Progress
Get a personalized checklist for forming your LLC in California — and everything that comes after.
Get Your Free Checklist