Introduction
Thinking about launching a business in California? One of the best ways to protect your personal assets and gain credibility is to form a Limited Liability Company (LLC). This guide walks you through how to form an LLC in California step-by-step in 2025.
Step 1: Choose a Name for Your California LLC
Your LLC name must be:
- Unique and distinguishable from existing California businesses
- Include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Not use restricted words like “bank” or “insurance” without proper licensing
You can check name availability on the California Secretary of State website.
Step 2: File Articles of Organization (Form LLC-1)
To officially create your LLC, file Form LLC-1 with the California Secretary of State. You can do this:
- Online via bizfile Online
- By mail
- In person
Filing fee: $70 (as of 2025)
Step 3: Appoint a Registered Agent
Your California LLC must have a registered agent with a physical address in California who can receive legal documents. This can be:
- A person
- A registered agent service
- You (if you live in CA and meet the requirements)
Step 4: File Statement of Information (Form LLC-12)
Within 90 days of filing your Articles of Organization, submit Form LLC-12, known as the Statement of Information.
- Filing fee: $20
- Must be updated every two years
Step 5: Create an Operating Agreement
While not required by the state, an Operating Agreement is essential for:
- Outlining member roles and responsibilities
- Avoiding disputes
- Protecting your limited liability status
You can draft it yourself or use a template from FormLLC.us.
Step 6: Apply for an EIN (Employer Identification Number)
Get your EIN from the IRS for free at irs.gov. You’ll need it to:
- Open a business bank account
- File taxes
- Hire employees
Optional: Register for State Taxes
Depending on your business type, you may need to:
- Register with the California Department of Tax and Fee Administration (CDTFA)
- Collect sales tax
- Pay employment taxes if you have employees
Final Thoughts
Knowing how to form an LLC in California can help you take control of your business with the right legal protections. California’s process is straightforward, but following each step ensures compliance and avoids penalties.
