To start an LLC in California, you need to appoint a registered agent and file Articles of Organization, among a million other tasks.
At California Registered Agents, we’re here to make forming and running your LLC a little bit easier.
On top of free LLC formation filing, we offer mail & virtual office options to help you stay organized, plus website & phone service so you can get the word out.
Plus, we help protect your privacy with free use of our business address—permanent and professional, thanks to the building we own in Sacramento.
Enjoy the benefits of all the business services you need in one place.
Forming an LLC in California: The BasicsOur FREE California LLC Formation ServiceStarting an LLC in California: 7-Step GuideLLC State Fees Cost BreakdownCalifornia LLC FAQsResources for LLCs in California
If you’re thinking of starting an LLC in California, you’re in good company. The Golden State has the 5th largest economy in the world, and the tech, agriculture, and tourism industries are booming.
California is especially popular with small business owners and entrepreneurs—in fact, the state is home to over 4 million small businesses that contribute billions of dollars to California’s economy.
Forming an LLC is a smart choice for business owners of all types, even for self-employed business owners who work out a home office and don’t have any employees. So, why should you start an LLC?
An LLC is one of the most popular business structures in America. Like a California corporation, a California LLC provides business owners (called LLC members) with limited liability protection. This means that if the business owes substantial debts, LLC members aren’t held personally liable beyond their initial investment in the company. Additionally, in case of a lawsuit, the LLC members aren’t sued directly but through the business.
LLCs can be run by LLC members or by managers hired by the members, giving business owners a great deal of flexibility compared to corporation, which must have a board and officers.
Additionally, while LLCs are taxed as “pass-through” entities by the IRS, LLC members can choose to have the company income taxed differently. For example, they can decide to change to a S-Corp or C-Corp tax election.
If you’re trying to choose between starting an LLC and a corporation, forming and managing an LLC is much more straightforward and gives you more freedom. You don’t need a board of directors or to elect officers. Instead, you can choose to have your LLC managed by its members (member-managed) or by managers that you employ (manager-managed).
And if you’re wavering between an LLC and working as a sole proprietor or general partnership, an LLC gives you the advantage of liability protection. As a sole proprietor or member of a general partnership, there’s no legal separation between you and your business, which leaves you vulnerable—you can be held personally responsible for lawsuits and debts leveled against your business.
An LLC is its own legal business entity, separate from its owners. This division protects LLC members’ personal assets (bank accounts, property, vehicles, and so on) from being seized to pay the LLC’s debts.
First off, you may be wondering: why is our LLC Formation Service FREE? The answer is pretty simple.
Many of our clients mistakenly thought that hiring us as a registered agent meant that we would automatically file their business formation paperwork for them. They were confused to find that hiring a registered agent is simply that: hiring a registered agent.
However, we didn’t want our clients to be unhappy, and because our California filing experts could file formation paperwork in their sleep, we decided to offer the service for free with registered agent service. All you have to do is sign up for it!
When you order our LLC Formation Service (also referred to as “Incorporation Service” at checkout), you only pay for registered agent service and state filing fees.
Here’s what you leave with:
Because we understand what it’s like to operate a business in California, we’ve made it our goal to provide services that make it easier for you to run your business. We’re with you from the start with LLC Formation Service, but we’re also with you as you grow, providing services like mail forwarding and virtual office to help keep your LLC running efficiently.
Here’s what sets us apart from other registered agents:
A major perk of hiring us is that you get FREE use of our commercial business address here in Sacramento, CA.
You can use our business address in place of yours on state documents to increase your privacy by keeping your personal information off the public record.
You can also use our business address to strengthen your LLC’s credibility if your actual office location isn’t so professional. For example, if you work from a home office, coworking space, or travel frequently, listing our business address can show customers that you’re legit.
Our business address is special because we own our own building. Many of our competitors use vendors and when they switch vendors, you have to update your business address. Not so with us. Our address is permanent and professional.
An important aspect of advertising your business and showing customers that you’re for real is having a business website.
That’s why we throw in a 90-day FREE trial of our California Business Presence: Website & Phone package with LLC Formation (select at checkout or in your online account). The trial comes with zero-cost website setup assistance from a member of our web team—you don’t need to know a thing about creating a website to end up with a polished piece of online real estate.
California Business Presence includes a secure business website with custom domain name (ex: “www.YourBusinessNameHere.org”), up to 10 business emails, and a phone line with a local California area code.
We include phone service so that you can keep your personal number private and a create professional line of communication with your customers. You can access your virtual phone service with our free app (available in US app stores) on your personal mobile device, and you get unlimited calls and SMS texts.
Our Mail Forwarding or Virtual Office Service (which comes with unlimited mail forwarding) can help keep you organized by ensuring that you don’t lose any important mail while also eliminating clutter and jail mail. Plus, you get a unique suite number to bolster your credibility.
This can be incredibly valuable as your LLC grows, particularly if you work from home or don’t have a dedicated office location.
With Virtual Office, you also get an office lease for a fraction of the cost of renting a physical location, plus the ability to rent conference rooms in our Sacramento building if you do need a physical space to meet with clients or have an LLC meeting.
The most common mistake we see business owners making is failing to file their biennial report, which can lead to steep financial penalties and even administrative dissolution of their LLC by the state. To prevent this from happening to you, we now include enrollment in our Compliance Service with LLC Formation as a protective measure.
We send you a reminder as the deadline approaches before filing on your behalf ($100 plus state fees). If you’d rather file on your own, simply cancel the service inside your online account.
There 7 basic steps to creating a California LLC in compliance with state and federal law:
After forming your LLC, there are a few additional steps to take to set your LLC up for success and keep your LLC in good standing with the state.
Ready to start your LLC? Follow our guide!
Choosing a name for your LLC sounds simple, but you’ll need to follow state regulations regarding LLC names.
Here are the three rules you need to follow:
To find out if your desired LLC name is available, you can use the California Business Name Search.
If you know what you want to name your business but you’re not yet ready to file, you can submit a Name Reservation form ($10) online through the SOS’s business portal to reserve that name for 60 days.
When you form your LLC with the state, you’re required to list a registered agent (also called agent for service of process) on your Articles of Organization, so you’ll need to appoint an agent before you start filling out your paperwork.
Your registered agent is responsible for accepting legal and state documents on behalf of your LLC. For example, if you LLC is sued, your registered agent is the one who receives that lawsuit and makes sure that it gets to you.
A registered agent can be an individual or a company that provides registered agent service (California Registered Agents) who:
You can serve as your own registered agent, but there are distinct advantages to hiring a service.
Filing your Articles of Organization is what officially forms your LLC in the eyes of the state. The form is available to download or submit online through the Bizfile Online forms directory.
You must provide the following information on your articles:
If hire us to file your articles, we’ll list ourselves as the LLC organizer.
The filing fee for your Articles of Organization is $70.
You can submit your articles by mail, in-person or online.
In-person drop off:Secretary of StateBusiness Programs Division – Business Entities1500 11th StreetSacramento, CA 95814
Mailing Address:Secretary of StateBusiness Entities FilingsP.O. Box 944260Sacramento, CA 94244-2600
Online:Bizfile Online Business Portal
California is one of the few states where having an operating agreement is legally required. You don’t need to file your operating agreement with the state, but you should have a copy on file and accessible if you need it.
An operating agreement is similar to corporate bylaws. It’s an internal documents that lays out the governing rules for your LLC, including management structure and ownership interest.
Your operating agreement should also contain information on the procedures for voting, dealing with disputes, and taking on new members.
Having a strong operating agreement can save you time and trouble. It can prove ownership of the LLC to third parties and help protect your rights as an LLC owner should you end up in court.
You can write your own operating agreement, but it’s good idea to have reviewed this document reviewed by a lawyer. When you hire us for LLC Formation, you get access to our FREE, attorney-drafted LLC operating agreement templates!
An EIN is similar to a social security number for your business. It’s a nine-digit number assigned to your LLC by the IRS and used to identify your business at tax time.
Having an EIN is required if you own a multi-member LLC or have any employees. If you own a single-member LLC, you can use your social security number, but having an EIN helps protect your identity.
You’ll often be asked to provide your EIN when opening a business bank account and when applying for loans, licenses, or permits.
You can request an EIN through the IRS at no cost, or hire us to get an EIN for you so you can focus on more important things (available at checkout or in your online account).
Most LLCs must file a BOI report with the Financial Crimes Enforcement Network (FinCEN) within 30 days of company formation. This is a federal report and the information you provide is not accessible to the public. The goal of BOI reports is to reduce financial fraud in the US.
On your report, you must list basic information about your LLC and those with the most power over its profits and activity, including all members with at least 25% ownership interest and anyone with sustainable control over your LLC’s operations.
You can file online through the FinCEN Database, or hire us to file for you and skip the hassle. Add BOI filing service at checkout or in your online account.
California requires that all newly-formed LLCs file a Statement of Information within 90 days formation.
Your Statement of Information gives the state updated details about your LLC, including:
Your Statement of Information costs $20 to file. Like your articles, it can be filed by mail, in-person, or online.
After your initial Statement of Information is submitted, you must file an updated statement every two years, due on the last day of the anniversary month of your LLC formation.
When you hire us for LLC formation service, we file your first Statement of Information when we file your Articles of Organization.
We also enroll you in our Compliance Service to prevent you from missing a future filing and being charged a hefty late fee or end up administratively dissolved by the state. We’ll send you a reminder before the due date and file on your behalf before it arrives ($100 + state fees). To file on your own, just cancel the service inside your online account.
After forming your LLC, there are a few other recommended steps to help your LLC thrive.
Getting a business bank account is crucial to keeping your personal and business finances separate. This is important because if you ever end up in court and your finances are scrutinized, you’re at risk of losing your limited liability protect due to “piercing the corporate veil.”
When shopping for a business bank account, look for a bank that offers accounts with high interest rates for savings and checking and low interest rates for lines of credit. Ideally, you also want low transactions fees, low (or no) monthly or annual fees, and low minimum account balance fees.
We offer our California Business Presence: Website & Phone package because we know that having a website is essential. With a website, you can quickly and easily share information about your services, products, mission, values, and more with potential clients. It also gives customers a convenient way to contact you.
As part of our California Business Presence package, we provide domain name service, which allows you to get a custom domain name that matches your business branding and makes it easy for customers to find you online (ex: “www.YourBusinessNameHere.org”).
We recommend setting up your website as soon as you can so that you can start sharing it. Sign up for California Business Presence at checkout or in your online account.
California collects a 7.25% sales & use tax on retail sales of tangible personal property. Services are generally not taxable.
If you are engaging in the sale of goods and merchandise, you’ll need to collect and pay the sales & use tax. And to do that, you must register with the Department of Tax and Fee Administration to obtain a seller’s permit.
You can register using the Department’s Online Services Portal.
Depending on your line of work and the type of business you run, you may need certain licenses or permits to legally operate your LLC.
For example, as a barber, you will need a professional license. And if you own a bar, you’ll need a liquor license.
You can find out about what licenses and permits you may need using the California Office of Small Business Advocate’s Guide to Permits, Licensing, and Regulations.
There are two keys to keeping your California LLC in good standing with the state.
Most businesses operating in California must pay an annual franchise tax. LLCs are on the hook for a flat fee of $800 each year.
If your LLC will make more $250,000 in gross annual receipts, you’ll also need to pay an estimated fee.
Due dates for this tax vary depending on which tax year your LLC adheres to—calendar or fiscal. California requires your LLC’s state tax year to be the same as your federal tax year.
For most LLCs, your tax year will start on January 1st. The first year you pay the franchise tax, your due date is the 15th day of the fourth month from your company formation date. After that, your franchise tax is due by the 15th day of the fourth month of your tax year.
You can find more information, forms for both the franchise tax and estimated fee, and pay your franchise tax online through the Franchise Tax Board.
You must file your initial Statement of Information within 90 days of LLC formation. Then, you must continue to file updated statements every two years to ensure that the state has current information about your LLC.
The filing fee is $20, and the due date is the last day of your company’s anniversary month. So, if you formed your LLC on September 7th, 2025, your second Statement of Information would be due by September 30st, 2027.
If you fail to file, you’ll be hit with a $250 late fee after 60 days. After 60 days, your LLC is at risk of being administratively dissolved by the state.
In an effort to keep you from suffering the negative consequences of forgetting your filing, we include enrollment in our Compliance Service with LLC Formation Filing Service. We’ll notify you that the due date is arriving and file the statement before it’s due ($100 + state fees) without you having to give it a second thought. If you’d prefer to file yourself, cancel the service inside your online account.
Here’s a quick overview of the state fees associated with starting and maintaining an LLC. Remember that in addition to these fees, you will need to pay personal income tax to the federal government and the state of California.
If you would like any of your filings expedited, you’ll need to pay an additional fee: $350 for 24-hour processing, $500 for four-hour processing, and $750 for same-day processing.
Some answers to a few of the most common questions we receive about California LLCs.
The filing fee for LLC Articles of Organization is $70. You’ll also need to file a Statement of Information, which costs $20, within 90 days of forming your LLC. Otherwise, the expenses of starting an LLC vary depending on what type of business you have and what kind of start-up costs you encounter (materials, office rental, training, and so on).
Articles of Organization are typically processed within 10-15 business days after they’re received. However, you can pay extra for faster processing—$350 for 24-hour processing, $500 for four-hour processing, and $750 for same-day processing.
Yes. Unfortunately, you’re required to pay the $800 Franchise Tax each year.
To form a CA LLC, you need to have a registered agent and file Articles of Organization with the Secretary of State. On your articles, you’ll need to list a physical business address, the name and address of your registered agent, and whether your LLC is member- or manager-managed. You must also choose a name that isn’t already registered to another business in California.
LLCs must pay the annual franchise tax of $800 (and the estimated fee, which varies, if they make over $250,000 in gross receipts).
LLCs do not pay state or federal income tax as business. Instead, the LLC’s profits are passed on to the LLC members, who pay personal income tax at the state and federal level.
Interestingly, many licensed professionals cannot form LLCs in California. Instead, they must form a Professional Corporation (PC) or a Registered Limited Liability Partnership (RLLP). LLC University has a pretty comprehensive list of the professionals that can’t form an LLC and the alternatives.
Here are some organizations and agencies that can assist you in your business journey with filing and tax information, business counseling, and details on accessing funding and grants.
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