If you plan to launch a business in California, forming an LLC is a must. Whether you’re dreaming of launching that beachside business in San Diego or a tech startup in Silicon Valley, I’ve got you covered with everything you need to know about starting an LLC in California in 2025.<\/p>\n
To start an LLC in California, you need to:<\/p>\n
- \n
- Choose a name<\/li>\n
- Appoint a registered agent<\/li>\n
- File articles of incorporation<\/li>\n
- Create an operating agreement<\/li>\n
- Get an EIN<\/li>\n<\/ol>\n
How to start an LLC in California in 5 steps<\/h2>\n
Starting an LLC in California might seem overwhelming at first glance. But I promise it’s not as complicated as it seems to start a business<\/a>. Let’s break down this process into bite-sized, manageable steps, shall we?<\/p>\n
1. Choose a name for your LLC<\/h3>\n
Before you can do anything else, you need to decide what to call your business.\u00a0<\/p>\n
This isn’t just about picking something catchy \u2013 California has specific rules about how to choose a name for your LLC<\/a>, such as:<\/p>\n
- \n
- Your name must include “Limited Liability Company,” “LLC,” or “L.L.C.” (You can also abbreviate “Limited” to “Ltd.” and “Company” to “Co.”)<\/li>\n
- Your chosen name can’t already be in use by another business in California<\/li>\n
- It can’t include words that would make people think you’re a government agency (like “FBI” or “Treasury”)<\/li>\n
- Some words like “bank,” “insurance,” and “trust” require additional permissions<\/li>\n<\/ul>\n
To check if your dream name is available, you can start by visiting the California Secretary of State’s business search tool<\/a>.<\/p>\n
Pro tip: <\/strong>Have a few backup options for your business name at the ready.<\/p>\n
There are a lot of business names that have already been chosen. And I know how disappointing it can be to fall in love with a name only to discover it’s taken!<\/p>\n
\n![\"LLC](\"https:\/\/www.godaddy.com\/resources\/wp-content\/uploads\/2025\/05\/LLC-California-Flags.jpg?size=3840x0\"\/)
<\/figure>\n<\/div>\nGet your business domain name<\/h4>\n
Once you’ve locked down your LLC name, don’t wait around \u2013 get a domain name<\/a> right away! Even if you’re not planning to build a website immediately, securing your domain prevents someone else from snagging it.<\/p>\n
Your domain name doesn’t have to match your LLC name exactly, but keeping them similar helps with brand consistency. For example, if your LLC is “Sunset Surfboards, LLC,” you might want to register sunsetsurfboards.com.<\/p>\n
Keep in mind your domain is basically your business’s address on the internet. It’s where customers will find you, so make it memorable and easy to spell.<\/p>\n
Get a DBA<\/h4>\n
“DBA” stands for “doing business as.” It\u2019s what allows you to operate under a name different from your LLC name. In California, this is also called a “fictitious business name.”<\/p>\n
Let\u2019s say your LLC is formally named “Johnson Family Enterprises, LLC,” but your actual cafe is called “Sunny Side Up.”\u00a0<\/p>\n
A DBA lets you legally operate and advertise your business as “Sunny Side Up” while maintaining your LLC protection.<\/p>\n
To get a DBA in California, you’ll need to file with the county clerk’s office where your business is located.<\/p>\n
Requirements vary by county, but these are the typical steps you\u2019ll follow:<\/p>\n
- \n
- File a Fictitious Business Name Statement<\/li>\n
- Pay a filing fee (~ $10-$100)<\/li>\n
- Publish your DBA in a local newspaper for four consecutive weeks (yes, really!)<\/li>\n<\/ol>\n
Learn more about what is a DBA<\/a> here.<\/p>\n
2. Appoint a registered agent<\/h3>\n
Every California LLC needs a registered agent \u2013 the person or company who accepts legal documents on behalf of your business. They\u2019re your business’s official point of contact with the state.<\/p>\n
Your registered agent<\/a> must:<\/p>\n
- \n
- Have a physical address in California (not a P.O. box)<\/li>\n
- Be available at that address during normal business hours<\/li>\n
- Be at least 18 years old<\/li>\n<\/ul>\n
You can be your own registered agent if you live in California, you can designate another person, or hire a professional registered agent service. If you’re your own agent, your personal address becomes public record, and you must be available at that address during business hours.<\/p>\n
This is why some business owners choose to use a registered agent service\u2014the cost is $100-$300 annually, but it gives them privacy and peace of mind. Plus, you won’t miss important legal notifications if you’re traveling or busy with meetings!<\/p>\n
3. File articles of organization \u2013 Form LLC-1<\/h3>\n
\n![\"LLC](\"https:\/\/www.godaddy.com\/resources\/wp-content\/uploads\/2025\/05\/Man-Wearing-Suit.jpg?size=3840x0\"\/)
<\/figure>\n<\/div>\nNow we’re getting to the \u201cofficial stuff\u201d\u2014filing your Articles of Organization with the California Secretary of State using Form LLC-1. This document formally creates your LLC.<\/p>\n
The form is relatively straightforward, asking basic information like:<\/p>\n
- \n
- Your LLC’s name<\/li>\n
- Business address<\/li>\n
- Registered agent information<\/li>\n
- Management structure (member-managed or manager-managed)<\/li>\n
- Name and address of the person filing the form<\/li>\n<\/ul>\n
The filing fee is $70, and you can submit your Articles of Organization one of three ways:<\/p>\n
Processing times vary depending on how busy the Secretary of State’s office is, but typically takes about 3-5 business days for online filings and 5-7 business days for mail-in filings.<\/p>\n
4. Create an operating agreement<\/h3>\n
Although California doesn’t require you to file an operating agreement with the state, having one is legally required.\u00a0<\/p>\n
An operating agreement outlines how your LLC will be run, including things like:<\/p>\n
- \n
- Ownership percentages for each member<\/li>\n
- How profits and losses will be distributed<\/li>\n
- Voting rights and decision-making processes<\/li>\n
- Rules for adding or removing members<\/li>\n
- What happens if a member wants to leave or passes away<\/li>\n
- Procedures for dissolving the LLC<\/li>\n<\/ul>\n
Even if you’re a single-member LLC, an operating agreement is crucial because it establishes your business as a separate entity from yourself (strengthening your limited liability protection).<\/p>\n
You can create an operating agreement yourself using templates available online, or have an attorney draft one for you. Either way, make sure all members sign it and keep it with your important business documents.<\/p>\n
5. Get an EIN<\/h3>\n
An EIN (Employer Identification Number) is like a Social Security number for your business. It’s a unique nine-digit number assigned by the IRS that identifies your business for tax purposes.<\/p>\n
You’ll need an EIN to do things like:<\/p>\n
- \n
- Open a business bank account<\/li>\n
- Hire employees<\/li>\n
- File business taxes<\/li>\n
- Apply for business licenses<\/li>\n
- Establish business credit<\/li>\n<\/ul>\n
For more information on Employer Identification Numbers, check the State of California Department of Industrial Relations website<\/a>.<\/p>\n
How long does it take to get an EIN?<\/h4>\n
If you apply online through the IRS website<\/a>, you’ll receive your EIN immediately after completing the application.\u00a0<\/p>\n
If you prefer to apply by mail using Form SS-4, it could take about 4-5 weeks to receive your EIN.<\/p>\n
How much does an EIN cost?<\/h4>\n
An EIN is free. The IRS doesn’t charge anything for assigning an EIN to your business.\u00a0<\/p>\n
However, be mindful of third-party services offering to get you an EIN for a fee. Don\u2019t fall for this! You can do it yourself at no cost.<\/p>\n
How much does it cost to start and run an LLC in California<\/h2>\n
There are other costs involved with running an LLC in California, so let\u2019s go over some of those costs below.\u00a0<\/p>\n
One-time startup costs<\/h3>\n
- \n
- Articles of Organization filing fee:<\/strong> $70<\/li>\n
- Initial Statement of Information (Form LLC-12):<\/strong> $20 (due within 90 days of formation)<\/li>\n
- Operating Agreement:<\/strong> $0-$200 (free if you create it yourself, or you might pay an attorney)<\/li>\n
- Name reservation fee (this one\u2019s optional): <\/strong>$10 to reserve your name before filing<\/li>\n<\/ul>\n
Ongoing annual expenses<\/h3>\n
- \n
- Annual franchise tax: <\/strong>$800 (yes, you read that right \u2013 this is the minimum tax you’ll pay EVERY year just for the privilege of having an LLC in California. Ouch!)<\/li>\n
- Statement of Information (Form LLC-12): <\/strong>$20 every two years<\/li>\n
- Annual LLC fee:<\/strong> This is based on your LLC’s income if it exceeds $250,000. The costs range from $900-$11,790 per year.<\/li>\n<\/ul>\n
Other potential costs<\/h3>\n
Depending on your business, and how you choose to go about things, additional costs might include:<\/p>\n
- \n
- Business licenses and permits: <\/strong>Varies by industry and location<\/li>\n
- Registered agent service: <\/strong>$100-$300 annually if you don’t act as your own agent<\/li>\n
- DBA filing:<\/strong> $25-$60 depending on your county<\/li>\n<\/ul>\n
What happens after your LLC is up and running<\/h2>\n
Congratulations on forming your California LLC! Now what?<\/p>\n
Well, now that your business entity is officially established, there are a few important steps to take to ensure your business operates smoothly and remains compliant with state regulations.<\/p>\n
Open a business bank account<\/h3>\n
Opening a dedicated business bank account is a crucial step for your new LLC.\u00a0<\/p>\n
Here’s what you need to know:<\/p>\n
- \n
- Required documents: <\/strong>Bring your EIN confirmation letter, LLC Articles of Organization, operating agreement, and personal identification.<\/li>\n
- Research options: <\/strong>Compare business checking accounts from different banks to find one with low fees and features that match your needs.<\/li>\n
- Choose the right account: <\/strong>Consider your transaction volume, minimum balance requirements, and whether you need merchant services or mobile banking.<\/li>\n
- Add authorized signers: <\/strong>Decide which members or managers will have account access and signing authority.<\/li>\n<\/ul>\n
Maintaining a separate business bank account is essential for preserving your limited liability protection. Mixing personal and business finances (called “commingling funds”) can potentially pierce your LLC’s liability shield, putting your personal assets at risk.\u00a0<\/p>\n
A separate account also simplifies accounting, tax preparation. It demonstrates business legitimacy to clients and vendors as well.<\/p>\n
File for permits and required business licenses<\/h3>\n
\n![\"LLC](\"https:\/\/www.godaddy.com\/resources\/wp-content\/uploads\/2025\/05\/CalGold-Permit-Assistance-Homepage.png?size=3840x0\"\/)
<\/figure>\n<\/div>\nCalifornia doesn’t have a single, comprehensive business license that applies to all businesses. Instead, licensing requirements depend on your industry type, business activities, physical location, and number of employees.<\/p>\n
To determine which permits and licenses your LLC needs you can take these steps:<\/p>\n
- \n
- Visit the CalGold website<\/a> to search for requirements based on your business type and location.<\/li>\n
- Check with your city and county government offices, as many local jurisdictions require business licenses.<\/li>\n
- Research industry-specific licenses through the California Department of Consumer Affairs<\/a>.<\/li>\n
- For regulated industries (like food service, childcare, or construction), contact the appropriate state regulatory board.<\/li>\n<\/ol>\n
Keep in mind that operating without required licenses can result in penalties, fines, or even forced closure of your business. Most permits and licenses need to be renewed regularly, so keep track of expiration dates to maintain compliance. I personally use my Google Calendar to send me reminders of important dates regarding my business stuff.<\/p>\n
File California Statement of Information \u2013 Form LLC-12<\/h3>\n
The Statement of Information (Form LLC-12) is a mandatory filing that updates the state on your LLC’s basic information.\u00a0<\/p>\n
You must file this form:<\/p>\n
- Research options: <\/strong>Compare business checking accounts from different banks to find one with low fees and features that match your needs.<\/li>\n
- Registered agent service: <\/strong>$100-$300 annually if you don’t act as your own agent<\/li>\n
- Statement of Information (Form LLC-12): <\/strong>$20 every two years<\/li>\n
- Initial Statement of Information (Form LLC-12):<\/strong> $20 (due within 90 days of formation)<\/li>\n
- Articles of Organization filing fee:<\/strong> $70<\/li>\n
![\"LLC](\"https:\/\/www.godaddy.com\/resources\/wp-content\/uploads\/2025\/05\/Golden-Gate-Bridge-San-Francisco.jpg?size=3840x0\"\/)
<\/figure>\n<\/div>\n