How to start an LLC in California

The name must contain "limited liability company", "L.L.C." or "LLC" ("Limited" may be abbreviated "Ltd." and "Company" may be abbreviated "Co."). It also has to be distinguishable from every business already on the California register.

Check it against California's naming rules with our name checker before you file.

Every California LLC needs a registered agent with a physical address in California, available in business hours to accept legal papers and state notices.

You can be your own agent, but your address goes on the public record and you need to be there during business hours. A registered agent service keeps your home address off the filing.

The Articles of Organization is the document that creates your LLC. It is filed with the California Secretary of State, Business Programs Division, which accepts it online.

It names the LLC, its registered agent and address, and whether it is managed by its members or by managers.

The operating agreement sets out who owns the LLC, how profits are shared and how decisions are made. It is not filed with the state, but banks often ask for it, and without one your state’s default rules decide disputes between members.

An Employer Identification Number from the IRS is the LLC’s federal tax number. You need it to open a business bank account and to hire, and it is free from the IRS.

Keep the LLC’s money separate from yours from the first day. Mixing them is the most common reason courts set aside an LLC’s liability protection.

Forming the LLC is not a business license. Check whether California requires a state license, what your city or county requires, and whether your trade is licensed. If you sell taxable goods or services, register for California sales tax too.

California LLCs file a Statement of Information every two years. It is due every two years during the filing window made up of the calendar month the Articles of Organization were filed and the five months before it.

The first one is due within 90 days after the Articles of Organization are filed.

Every LLC organized or doing business in California owes an annual LLC tax to the Franchise Tax Board, first due by the 15th day of the 4th month after the start of its first taxable year and on the same schedule each year after. LLCs with higher total California income also owe an LLC fee that scales with that income, estimated and paid by the 15th day of the 6th month of the tax year. LLCs file Form 568 with the Franchise Tax Board.