Set up an LLC in California without the hassle.
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if your business name is available in California!
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There are many reasons to form an LLC in California. Here are the main ones:
Legal protection in case of bankruptcy or lawsuits
Separation of personal and business assets听
Tax benefits: flexibility & pass-through taxation
Increasing credibility and trust for your business
Check if your California LLC name is available听
Choose a registered agent for your LLC
Sit back and let us take care of the paperwork for you
Starting an LLC in California or any other state can be a stressful process, especially if you鈥檙e doing it for the first time and not sure what to expect. To help guide you through this process, we created this simple step by step guide, breaking down each step so that you can clearly understand what you need to do in each stage of the process.
California requires you to register the name of your business in order to form an LLC.听The first thing you need to do is to run a California business entity name search to check in the Secretary of State business name database.听
This step is done to make sure the name you chose is unique. Your business name must be unique in order for you to be able to form an LLC in California.
Other requirements include:
The California registered agent must be identified in the Articles of Organization. The agent must:
听
The LLC can choose the services of any approved California registered agents or can use a registered corporate agent who is qualified with the California Secretary of State.
You can choose to designate yourself as the registered agent. But, keep in mind that if you do that, your information will be public.听
An article of organization is a key legal document containing basic information about your business, and filling it is one of the very first steps for听forming an LLC.
California requires you to file Articles of Organization with the Secretary of State. You can only do this online through the . For domestic LLC’s you complete the information for “Articles of Organization – CA LLC”. There are also options for conversions and foreign (out-of-state) LLCs.
Note: the previously used Form LLC-1 is no longer available for download.
The filing fees for California LLC formation is $75 in total, which includes $70 state filing fee for your Articles of Organization, and $5 fee for certified copy.
You need to be sure you fill in form LLC-1 correctly or it will be sent back to you for correction and delay the process of operating your business as an LLC.
Include the following on the form:
California allows filing the Submission of the Cover Sheet and the Articles of Organization online only. Submission online: Go to bizfile California. You must pay the fee with Mastercard or Visa
Other forms are available for download for Conversions, Restated Articles, and Amendments and can be submitted by mail or in person as follows:
By mail to Secretary of State, Business Entities Filings, P.O. Box 944260, Sacramento, CA 94244-2600. You may pay by check or money order. Do not send cash. There is no extra handling fee
In person at the Sacramento office, 1500 11th Street, Sacramento, CA 95814. You may pay by check, money order, Visa, or Mastercard. In addition to the $70.00 filing fee, there will be an extra handling fee of $15.00. No matter how you file, if you want a certified copy, you need to submit your own copy and pay a $5.00 certification fee
In California, forming an LLC requires you to create and maintain an operating agreement. An operating agreement defines the roles and responsibilities of all members and goes a long way toward preventing future misunderstandings.
You don鈥檛 need to file the agreement with the Secretary of State, but the state does require the LLC to prepare one and maintain it at the office where the rest of the LLC papers are kept.
The agreement should include:
The operating agreement should be updated whenever there is a new member or there are any other changes that need to be made so that the agreement will accurately reflect your current situation.
Important note: California requires you to create an operating agreement, even if you have a single member LLC that includes only yourself.
In California, like in other states, you would need to create an EIN (IRS Employer Identification Number). This is very beneficial from several reasons that will be explained below, so we consider it a must for every business owner.
An EIN is your Employer Identification Number required and issued by the IRS for all LLCs. It is a 9-digit number similar to your Social Security Number (SSN) but is used for business-related purposes only.听As a business owner, you will need an EIN to open a business bank account, apply for a business loan, and to pay your business income taxes.
Note the EIN is filed with the IRS, and is not the same as your California Tax ID Number.
This step-by-step guide details the steps and requirements you need to name your LLC in California.
There are different costs to form an LLC in California and maintain it. We鈥檝e listed all of them in this post.
A California registered agent is a mandatory step in your LLC formation process – learn more about it.
If you’re planning to start an LLC in California, you might be curious how it compares to forming an LLC in Delaware, which another highly popular choice for businesses nationwide. While Delaware is known for its strong business law system and startup-friendly environment, California offers direct advantages for businesses operating locally, despite having higher fees and stricter compliance requirements. Below, we鈥檝e put together a detailed comparison of California LLCs versus Delaware LLCs, highlighting the differences in costs, taxation, privacy, and business regulations to help you choose the best option for your needs.
Feature | California LLC | Delaware LLC |
Filing Fee | $70 (Articles of Organization) | $110 (Certificate of Formation) |
Annual Fees | $800 minimum annual franchise tax + $20 Statement of Information filing fee | $300 annual franchise tax |
First-Year Franchise Tax Waiver | Available for certain new businesses (first year only) | Not applicable |
Privacy | Limited; ownership information is public | Good privacy; members disclosed to state but not made public |
State Income Tax | 8.84% corporate rate or pass-through taxation for LLCs | None (for Delaware-formed LLCs not operating there) |
Franchise Tax | $800 minimum annually | $300 annually |
Business Court System | No special business court | Court of Chancery (renowned for business disputes) |
Legal Precedent | Strong for California law | Very strong for corporate/business law |
Ease of Formation | Straightforward but with ongoing reporting | Straightforward but requires maintaining a Delaware agent |
Flexibility in Structure | High, but subject to California-specific rules | Very high flexibility; investor-friendly terms |
Speed of Processing | Standard (can pay extra for expedited service) | Fast processing, especially for business filings |
Ideal For | Businesses operating primarily in California; local services; real estate ventures | Startups, companies seeking national or international growth |
Foreign Qualification Required? | No (if operating only in California) | Yes (must register as a foreign entity to operate in California) |
Registered Agent Requirement | Yes | Yes |
Few things to keep in mind:
While Delaware offers powerful advantages for companies planning to scale quickly or attract outside investment, forming an LLC in California makes more sense if your business will be operating mainly within the state. Forming out-of-state may seem appealing at first, but if you鈥檙e doing business in California, you鈥檒l still need to register as a foreign entity and pay California’s franchise taxes, potentially doubling your costs and paperwork. Always consider where your company will operate and grow when choosing where to form your LLC.
At 91吃瓜, we love nothing more than helping people start their business. We take care of the LLC filing and offer additional services so you can focus on launching and growing your business, while staying informed and compliant with state regulations.
Here鈥檚 why people choose to form their LLC with us:
Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.
Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.
We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.
For more reviews from our customers, visit our reviews page.
An LLC is a limited liability company, a common business structure for small and medium businesses that allows you to protect your business and separate it from your personal assets, while providing flexibility and tax benefits like pass-through taxation.
To form an LLC you will need to pay a $70 fee for filing the Articles of Organization with the California Secretary of State plus a $5 Certified Copy fee. In addition you will need to pay within a few months a $20 fee for filing a Statement of Information, and a $800 Franchise Tax. Some additional fees may incur depend on how you file it, and you may have other costs related to name reservation, DBA registration etc.听
These are the main steps to set up your LLC in California:
1: Name your California LLC
2: Choose a registered agent
3: File articles of organization
4: Create an operating agreement
5: Apply for an EIN
After that you will need to take care of additional aspect such as obtaining the required business licenses and permits, consider opening a separate bank account and more.
Any LLC registered with the California Secretary of State must pay the $800 annual tax if they are officially classified to be doing business in California. This holds true if the business engages in transactions for financial gain in the state, commercially resides in the state or has California sales, property or payroll that exceeds a defined threshold.
This portion of our website is for informational purposes only. 91吃瓜 is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, 91吃瓜 is not responsible for the information and/or its accuracy or completeness.
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