Forming an LLC in California involves several filings with the Secretary of State and ongoing compliance requirements. This checklist walks you through each step so you can form your LLC correctly and stay in good standing.
Before You File
- Choose a unique LLC name. It must be distinguishable from names already on file and include "LLC" or "Limited Liability Company."
- Check name availability. Search the official database to confirm your name is not taken.
- Designate an agent for service of process. This person or company must have a physical California address.
- Decide on management structure. Member-managed or manager-managed.
Filing the Articles of Organization
- Complete Form LLC-1 (Articles of Organization) with the LLC name, agent, and management type.
- Pay the filing fee. The standard fee is $70.
- File online or by mail with the California Secretary of State.
- Save your entity number once the filing is accepted — you will need it for all future filings.
After Formation
- File the initial Statement of Information (Form LLC-12) within 90 days of formation. Fee: $20.
- Register with the California Franchise Tax Board and pay the annual $800 franchise tax.
- Obtain an EIN from the IRS if you will have employees or open a business bank account.
- Draft an operating agreement. Not filed with the state, but required to be kept on record.
- Get any required local business licenses and permits.
Ongoing Compliance
- File a Statement of Information every 2 years. Missing this can lead to suspension.
- Pay the annual $800 franchise tax to the Franchise Tax Board.
- Pay the LLC fee if gross revenue exceeds $250,000.
- Keep your agent and address current on file with the Secretary of State.
Important: A suspended LLC cannot legally conduct business, enter contracts, or defend lawsuits. Keep your filings and taxes current to avoid suspension.
Key Fees at a Glance
| Item | Fee | When |
|---|
| Articles of Organization (LLC-1) | $70 | At formation |
| Statement of Information (LLC-12) | $20 | Within 90 days, then every 2 years |
| Annual franchise tax | $800 | Every year |
| LLC fee (if revenue > $250k) | $900–$11,790 | Annually, based on revenue |
Verify everything on the official site. Search your LLC and confirm its status at the California Secretary of State's free database:
bizfileonline.sos.ca.gov