How to Form an LLC in California: Every Step

California forms an LLC with one form, Form LLC-1. Here is each step, plus the filings that keep the LLC active afterward.

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Filed 2026-10-18

California makes forming an LLC a short list of state filings. You file one form to create the company. You name an agent. Then you keep the LLC active with a Statement of Information and Franchise Tax Board payments. This walkthrough covers each step in order.

What an LLC is

The IRS treats the Limited Liability Company as a type of business created under state law. The SBA's guide says an LLC lets you take advantage of the benefits of both the corporation and partnership business structures. The SBA's guide says LLC profits and losses can get passed through to your personal income without facing corporate taxes.

The Franchise Tax Board says LLCs protect members against personal liabilities. The SBA's guide notes that this protection has limits. You can form an LLC to run a business or to hold assets. If you are weighing this against other structures, see LLC, corporation, or sole proprietorship.

Before you file: what to know about forming an LLC in California

The Franchise Tax Board says to register or organize an LLC in California you contact the Secretary of State. California's FAQ says you should consult with private legal counsel before submitting formation documents.

California's FAQ says online forms have been drafted to meet the minimum statutory requirements, and additional provisions can be included in an attachment. So you can add terms in an attachment.

Step 1: choose a name

Your LLC name goes on the Articles of Organization. The SBA's guide says this document includes business information like the company name, address, member names, and the registered agent. Pick the name before you file.

California's FAQ says a corporation, limited liability company or limited partnership name can be reserved online at bizfileOnline.sos.ca.gov. That holds a name while you finish the rest of your setup.

Step 2: designate an agent for service of process

California's Secretary of State says limited liability companies must designate an agent for service of process. California's FAQ says this person accepts court papers if a business entity is sued.

Who can fill the role? California's FAQ says an agent can be an individual who lives in California. A small corporation often names an officer or director as its agent. A Registered Corporate Agent must give advanced approval before it is designated.

One rule trips people up. California's FAQ says a business entity cannot act as its own agent for service of process. Your LLC cannot name itself.

Know what goes public. California's FAQ says the name and physical street address of an agent for service of process is a public record. If you use your home, that address becomes public. Learn more in an LLC's registered agent.

Step 3: file Articles of Organization (Form LLC-1) with the California Secretary of State

This filing is the one that creates the company. California's FAQ says a limited liability company is formed by filing Articles of Organization, Form LLC-1.

Can you form an LLC in California online? Yes. California's FAQ says a business entity can be formed in California online at bizfileOnline.sos.ca.gov. The California Secretary of State also accepts all business forms by mail or in person.

The SBA's guide calls the articles of organization a simple document that describes the basics of your LLC. For what filing costs, see the state filing fee for an LLC.

Step 4: create an operating agreement (not filed with the state)

The SBA's guide says an operating agreement lays out how your company handles its money and its day-to-day choices. It defines how key business decisions are made, as well as each member's duties, powers, and responsibilities.

California's FAQ says operating agreements and meeting minutes are not filed with the Secretary of State. You write it, you sign it, you keep it.

Step 5: get an EIN from the IRS

An Employer Identification Number is a federal tax ID. The IRS issues it, not California. For how the process works, see how do I get an EIN number and IRS EIN.

The Franchise Tax Board says an LLC must have the same classification for both California and federal tax purposes. An LLC with only one member is a disregarded entity for federal purposes. An LLC with more than one owner is a partnership.

Step 6: handle licenses, permits, and tax registration

Filing Form LLC-1 does not license your business. California's Secretary of State says a business entity formed or registered with the state must obtain the necessary licenses or permits. The Secretary of State does not issue them.

Instead, the Secretary of State refers businesses to the CalGold website. CalGold's online database provides links and contact information to agencies that administer and issue business licenses, permits and registration requirements. Check it for your city and county. For a broader look, see business license.

California's FAQ says several agencies administer a variety of taxes. Its Tax Information webpage lists agencies that can help determine your tax obligations, plus tax reporting and taxpayer rights.

Step 7: file your Statement of Information to stay active

The California Secretary of State says every limited liability company must file a Statement of Information either every year or every two years. For LLCs, it is every two years. California Secretary of State FAQs say all Limited Liability Companies file every two years in the month of registration.

The Franchise Tax Board says to keep your LLC active you must file the Statement of Information with the SOS. Statements of Information can be filed online at bizfileOnline.sos.ca.gov.

File again when things change. California's FAQ says a Statement of Information must also be filed if the agent for service of process changes or resigns. It is important to file when the entity's address information changes. For more on these follow-up filings, see the annual LLC report.

California LLC taxes and fees to plan for

The Franchise Tax Board says an LLC doing business or organized in California must pay an annual tax. The yearly tax is due even if you are not conducting business, until you cancel your LLC. The annual tax payment is due with LLC Tax Voucher FTB 3522. You can pay online with a bank account or credit card, or by mail.

Bigger LLCs owe more. The Franchise Tax Board says an LLC that will make more than a certain amount must pay a fee. Use FTB 3536 to remit the estimated fee payment. If your LLC files on an extension, refer to FTB 3537.

California's FAQ says most businesses must pay a minimum Franchise Tax each year. The SBA's guide says LLC members are considered self-employed and must pay self-employment tax contributions towards Medicare and Social Security. The SBA's guide says an LLC can be taxed as a C corp, S corp, or a nonprofit, though these arrangements are less common. Compare the options in LLC vs. LLC taxed as an S corp.

For more, the Franchise Tax Board points to Limited Liability Company Filing Information, FTB 3556, and the Limited Liability Company Tax Booklet.

What happens if you stop filing: penalties and suspension

Miss the Statement of Information and the state notices. The California Secretary of State's FAQs say an entity that has not filed its statement timely receives a notice of delinquency. A business entity that fails to file gets extra time to file after that notice.

The Franchise Tax Board says the SOS imposes a penalty if a Statement of Information is not filed. The FTB collects that penalty for the SOS.

California's Franchise Tax Board can suspend a business entity for failure to meet tax requirements. The California Secretary of State says a business entity should contact the Franchise Tax Board for revivor requirements after a Franchise Tax Board suspension. An entity suspended by the Secretary of State can be revived by filing a current Statement of Information online.

How to cancel or close a California LLC

Done with the business? Close it properly. The FTB says you must stop doing business in California after the final taxable year when you close your business. You must file the required paperwork with the Secretary of State and with the FTB.

The Franchise Tax Board says if you cancel your LLC within one year of organizing, you can file Short form cancellation with the SOS. The FTB points to Guide to Dissolve, Surrender, or Cancel a California Business Entity, FTB Publication 1038, for more information.

Do not just walk away. The annual tax keeps coming due until you cancel the LLC with the state.