How to Start an LLC in California

Starting an LLC in California? You’ll need to come up with a business name, find a registered agent, file Articles of Organization with the California Secretary of State, and—unfortunately—pay the annual $800 California Franchise Tax. Once you’re registered, you’ll need to take a few more organizational steps to get set up to do business. Here’s how.

Create a California LLC in 6 Steps:

  1. Name your California LLC
  2. Choose a Registered Agent
  3. File Articles of Organization
  4. Set Up Business Operations
  5. File BOI Report
  6. Pay the California Franchise Tax
Start Your California LLC

Step 1: Name Your California LLC

Before you can do anything, you need a business name that meets California’s requirements. When you’re coming up with a name, keep the following in mind:

  • Is your name unique in California?
     If your business name—or one very close to it—is already in use by another business in California, your paperwork will be rejected. Search California’s database to check.
  • Can your name be trademarked? If you’re thinking about trademarking your business name someday, you’ll want to make sure it’s available now. You can hire us to register a trademark at the federal level. Our attorney-led service includes a clearance search and troubleshooting recommendations.
  • Is your name available as a domain name?
    Check to see if your business name is taken online as a domain name. When you start building an online presence, it’s important for branding reasons that your social media handle, domain name, and business name are all congruent.
  • Does your name comply with California’s naming requirements?
    Your name will need an identifier like “LLC” or “Limited Liability Company.” It will also need to avoid using any language that could mislead the public into thinking your company is something it isn’t (like “corporation” or “bank”)

Can two businesses have the same name in California?

No. California’s state statutes (CA Corp Code § 17701.08) require a business name to be “distinguishable in the records of the Secretary of State.” This means that your business name must be different from any other business name registered or reserved in the state.

Can you have two names for your business in California?

Yes! In fact, you can have many, as long as you register them. Any name you use other than your LLC’s registered name is called a Fictitious Business Name or DBA. To register, you’ll file a Fictitious Business Name (FBN) statement with the County Clerk in the county where you’re doing business.

Step 2: Choose a Registered Agent

Your registered agent is the official public point of contact for your LLC. Your registered agent will be available at a physical address during business hours to accept state and legal notifications (like service of process) in person. They should then quickly and securely forward notifications to you.

Registered agents fulfill an important purpose in furthering corporate transparency, ensuring someone can always get in touch with your business.

Your registered agent must:

  • maintain a physical address (not a PO box) in California
  • be present at that address during business hours
  • accept and forward legal notifications to your business

Registered agents are required by law in California.

How do I change the registered agent for my LLC in California?

You can change your California registered agent on your Statement of Information (the report your LLC will file with the California Secretary of State every other year). If you’re changing your registered agent outside of your Statement of Information filing period, it’s free. If it’s within your filing period, it’s $25.

Who can be a registered agent in California? 

You have two choices when it comes to choosing a registered agent for your LLC:

  • Appoint an individual (like yourself or another trusted adult) to be your registered agent.
  • Hire a commercial registered agent service (like us!) to be your registered agent.

Being your own registered agent is a viable option if you have a physical address in California where you keep regular business hours, and you don’t mind being served legal paperwork in front of clients or customers. But it’s important to note that your name and address will be listed on the public record (which usually results in junk mail).

Step 3: File Articles of Organization

The paperwork you’ll file with the California Secretary of State to form your LLC is called California Articles of Organization. You can complete this paperwork and submit it by mail or online for $70. You’ll need the following information:

  • Business Name. Make sure to include your identifier (“LLC” or some version of that) and check that it’s available in your state.
  • Business Address. This has to be a street address in California, but it doesn’t necessarily have to be where you do business. Hire us and we’ll list our address here.
  • Mailing Address. This can be any address where you receive mail, whether it’s in California or not. This includes a registered agent address.
  • Agent for Service of Process. If you’re appointing an individual, you’ll need to list their name and California street address. If you hire us, you can skip that and we’ll list our info here.
  • Management. You’ll need to specify whether a manager, more than one manager, or your LLC members will handle the daily operations of your LLC.
  • Organizer Information. This is just whoever is filling out and submitting your paperwork. Hire us, and we’ll take care of this part. They’ll need to sign and print their name here.

It’s important to note that everything on this form will go on the California Secretary of State’s website and become searchable online.

How long does it take to process Articles of Organization in California?

It usually takes around 8 business days for the California Secretary of State to process Articles of Organization, depending on how busy their office is.

Are Articles of Organization the same as the Statement of Information?

No. Articles of Organization is the form you fill out to create your LLC. The Statement of Information is a report you’ll submit to the California Secretary of State every other year to keep the state up-to-date on your LLC.

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Step 4: Set Up Business Operations

Once your Articles of Organization are processed and you receive your approval from the California Secretary of State, you can start to set up business operations. These steps aren’t part of officially forming your LLC, but they are important for a healthy, functioning LLC.

  • Adopt an operating agreement. This is basically a contract that lays the groundwork for how your LLC will undergo important processes like voting, adding members, dividing ownership, and handling emergencies. Without an operating agreement, in the event of legal trouble, your LLC will default to California’s state statutes (which might not work well for your business).
  • Get an EIN. An EIN is a nine-digit tax identification number that will be essential for setting up a business bank account and hiring employees. You can apply for one online with the IRS for free.
  • Organize your finances. This means keeping your business and personal finances separate (a necessity for maintaining your liability protection). To do so, you’ll need a business bank account.
  • Obtain licenses and permits. There’s no statewide license required in California, but depending on your location and what kind of business you’re doing, you may still need a license.

Step 5: File BOI Report

Most LLCs are required to file a Beneficial Ownership Information (BOI) Report after filing an LLC. The report discloses to the federal government who owns at least 25% of the LLC and/or exercises substantial control over the LLC.

LLCs formed in 2024 have 90 days from the date of registration to file a BOI Report. If you file in 2025, you’ll have just 30 days to file.

Step 6: Pay the $800 California Franchise Tax

All California LLCs—regardless of how much money they make—have to pay an annual tax of $800. This tax comes due within the first 4.5 months of forming your LLC, and then every April 15th in the years following.

How do I avoid the Franchise Tax in California?

There’s no way to avoid the California Franchise Tax, unfortunately. But you can avoid making back-to-back payments by not starting an LLC at the end of the year.

For example, if you form an LLC in December, you’ll have to pay the Franchise Tax the following March, and then again on April 15th. Which means you’ll pay a total $1,600 in a span of two months.

Frequently Asked Questions

What are the disadvantages of a California LLC?

The main disadvantage of starting an LLC in California is that every year—no matter how money you make—you have to pay the California Franchise Tax ($800). Most states charge a much lower fee every year to maintain an LLC. Unfortunately, there’s no way to avoid the California Franchise Tax.

What is the California LLC Estimated Fee?

The LLC Estimated Fee on applies to LLCs in California that make more than $250,000 in total revenue. It’s an “estimated” fee because it requires LLC owners to predict how much money you think you’ll make this year and pay a fee based off that number. You’ll use Form 3536 to pay it.

Is California a good state to start an LLC?

California has one of the biggest economies in the nation, but they also have the steepest annual fee to start an LLC. But if you live in California and want to start a small business, an LLC is still probably the way to go. It will afford you liability protection and flexibility.

How do I get a business email address?

When you hire us to act as your registered agent or start an LLC, we’ll provide a business email address free for the first 90 days (and $9 per month after that). Using a professional email helps you keep your own email private while building trust and credibility with the public right from the get go.

Should my domain name match my business name exactly?

Not necessarily. If your business name is short, memorable, and available as a domain name—then absolutely. But if your business name is long and tricky to spell (for example, “Genevieve’s Vintage Emporium”), then you might be smart to go with something shorter and easier to type in (like “GensVintage.com”). The most important consideration is that your domain name and your business name are each on brand for your business, complementing each other in some way.

When you hire us to act as your registered agent or form your LLC, we’ll provide a domain name free for a year.

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