The filing path
How to form an LLC in California step by step.
You can prepare and submit the filing directly through the state. The filing itself is only part of the process: decide how the LLC will be owned and managed, complete the state filing, and organize the company after approval.
Choose and check the LLC name
The name must comply with California's naming rules and be distinguishable in state records. A preliminary search is useful, but the filing office makes the final availability decision.
Appoint an agent for service of process
Select a qualified agent for service of process (California's term for a registered agent) who can receive official and legal documents at the address required by California.
Decide how the LLC will be managed
Determine whether the LLC will be member-managed or manager-managed. The formation document and operating agreement should reflect the intended authority structure.
Prepare and file the Articles of Organization (Form LLC-1)
Provide the required LLC, agent, address, management and organizer information. The current state filing fee shown above is $70.
Prepare a written operating agreement
Document the LLC's ownership, management, authority and financial rules. Keep the agreement with the company records rather than filing it publicly.
Complete state-specific follow-up filings
Address any initial or recurring report, publication, tax registration, franchise tax, business license or other filing that applies after formation.
Complete the EIN, banking and funding setup
Obtain an EIN when required or useful, open a separate company account and document money contributed or loaned to the LLC.
Costs and maintenance
Separate the formation fee from recurring obligations.
The current state formation fee is $70. The principal recurring item shown above is $20, but taxes, licenses, registered-agent service, publication and local requirements may add cost.
California LLCs generally owe an $800 annual LLC tax beginning with the first taxable year, subject to limited exceptions. An additional LLC fee can apply at $250,000 or more of California total income.
The $70 Articles filing is separate from the $20 initial Statement of Information, due within 90 days. Subsequent Statements are generally due every two years. California LLCs generally pay the $800 annual LLC tax beginning with the first taxable year and file Form 568; the temporary first-year exemption applied to LLCs organized or registered during 2021 through 2023.
After approval
The state filing is not the finish line.
Keep the approved filing with the LLC's records. Complete the operating agreement, obtain an EIN when required or useful, open a separate bank account, document owner contributions or loans, and identify applicable tax, license, insurance and reporting obligations.
Common questions
California LLC FAQs
How much does it cost to form a California LLC?+
The current state formation fee is $70. Formation services, expedited processing, registered-agent service, licenses and taxes can add cost.
Can I file the LLC directly with California?+
Yes. You may use the free DIY instructions on this page and submit the filing through the official California system.
Should a California LLC have an operating agreement?+
A written operating agreement is strongly recommended to document ownership, management, authority and financial rules, even when it is not filed with the state.
What should I do after the LLC is approved?+
Finish the operating agreement, EIN, banking, funding and company records, then address licenses, taxes, insurance and recurring compliance.
