How to Start an LLC in California

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

It costs $70 to start an LLC in California. After formation, you will also owe $20 every 2 years for the File Your Statement of Information (Form LLC-12).

What are these fees for?

• The $70 is to file the Articles of Organization — the document that officially creates your LLC.
• The $20 every 2 years is for the File Your Statement of Information (Form LLC-12) — a mandatory filing that keeps your LLC in good standing.
• See Step 7 below for additional requirements and costs.

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

• Online filing: 2–3 business days (online only — mail filing no longer accepted)
• Mail filing: N/A — mail filing not accepted

As of 2025, California only accepts LLC formation filings online. Mail filings are no longer accepted.

Steps to Form an LLC in California

Step 1: Search Your LLC Name

Search your LLC name to make sure it's available in California. Two businesses in the state cannot share the same name.

California business name search →

Step 2: Choose a Registered Agent

A Registered Agent is a person or company that accepts legal mail and state notices on behalf of your LLC. California requires your Registered Agent to have a physical street address in the state — PO Boxes are not allowed. Your options:

• Yourself (if you have a physical address in California)
• A friend or family member who lives in California
• A professional Registered Agent service

Step 3: File Articles of Organization with Secretary of State

To officially create your LLC, file the Articles of Organization with the California Secretary of State. The filing fee is $70.

As of 2025, California only accepts LLC formation filings online. Mail filings are no longer accepted.

Step 4: Create an Operating Agreement

An Operating Agreement is an internal document that shows who owns the LLC and how it will be run. You do not need to file it with the state or the IRS — just keep it with your business records. All LLCs should have one, even single-member LLCs.

Step 5: Get an EIN from the IRS

An EIN (Employer Identification Number) is your LLC's federal tax ID. It is free from the IRS and is needed to open a business bank account, hire employees, and file taxes.

• US residents with an SSN: Apply online at IRS.gov (takes ~15 minutes, free)
• Non-US residents without an SSN: Apply by fax or mail using Form SS-4 (takes 1–3 months)

Step 6: File Your Statement of Information (Form LLC-12)

First due: Within 90 days of your LLC being approved

Step 7: Pay the $800 Annual Franchise Tax

First due: 4.5 months after your LLC is approved

• If your LLC has over $250,000 in gross annual receipts, you must also file an Estimated Fee using Form 3536.

After Your LLC Is Approved

Open a business bank account

Keep business and personal finances separate to maintain liability protection. You will need your EIN and your stamped/approved Articles of Organization to open an account.

Get business licenses and permits

California does not have a state general business license. However, depending on your location and business type, you may need a local city or county business license or permit.

Understand your tax obligations

LLCs don't pay federal income tax directly. Profits and losses pass through to the members, who report them on their personal federal tax returns.

California has a state income tax. Most LLCs file Form 568 (Limited Liability Company Return of Income) with the California Franchise Tax Board.

California LLC FAQs