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Start a Free LLC in California

To start an LLC in California, you file Articles of Organization with the Secretary of State. Use our basic LLC filing service to form a free California LLC, where we prepare and file the LLC documents with the state. You only pay a $70 state filing fee. Choose one of our higher packages inclusive of an operating agreement, EIN, registered agent, and additional California LLC services.

California LLC Formation Packages

Start your LLC at $0 + state fees

How to Form an LLC in California in 6 Steps

Start by choosing a business name for your LLC in California. Next, appoint a reliable registered agent with a street address in CA. Then file your Articles of Organization with the Secretary of State. After that, put your ownership terms in writing with an Operating Agreement, file your Statement of Information, and get an EIN. California has an additional requirement most states do not; the Statement of Information is due within 90 days of approval, so pay close attention to the steps below.

Swyft Filings offers LLC formation services in all 50 states. Select our basic package to start an LLC in California for free. We also offer professional registered agent services, so you can avoid using your personal California address as the registered agent address in public filings.

Step 1: Choose a Name for Your California LLC

Your LLC's name is the first thing the Secretary of State checks. Getting it right the first time saves you a resubmission and a delay. Run your name against these three checks before you file. It’s a five-minute step that can help avoid rejection of your Articles of Organization later.

Distinguishable name: It must be different enough from every other business already on file with the Secretary of State.
Required designator: The name must include "LLC," "L.L.C.," or "Limited Liability Company."
Restricted words: Words like "bank," "trust," "insurer," or anything implying a government agency need special approval before the state will accept them.

If you haven't decided on a name, use Swyft Filings' free business name generator tool to create unique names based on your ideas. List a few variations, so you have backups ready if your first choice is taken. Once the name is final, check availability through Bizfile Online.

If your name is available but you're not ready to form your LLC yet, California lets you hold it for 60 days for a $10 fee. You submit the reservation request through Bizfile Online, and once it's approved, no one else can register that name while your hold is active.

Not necessarily. You only need to file a DBA (fictitious name) in California if you want to operate under a name different from your LLC's official filed name. If your LLC is legally "Bayview Holdings, LLC" but you want to run your coffee shop as "Bayview Coffee Co.," that's when you'd file a DBA.

Though it's not mandatory, it's worth considering. An approved LLC name only protects you inside California and only against other business entities, not against similar branding elsewhere. Filing a federal trademark gives broader protection and is worth considering once you're actively selling under that name.

Step 2: Appoint a California Registered Agent

California calls this role an Agent for Service of Process. This person or company accepts legal notices and official state mail on your LLC's behalf. Your agent needs a California physical street address (no P.O. boxes) and must be available during normal business hours.

Yes, as long as you have a physical street address in California and can be reliably available during business hours to accept legal documents. Some owners prefer a professional registered agent service instead, so their home address doesn't end up in a public filing, and they're not caught off guard by a legal notice while they're out of the office.

An LLC without a current, valid registered agent on file can fall out of good standing with the state and risks missing time-sensitive legal notices, including lawsuits. If your agent resigns or moves without you updating the state, your LLC's filings can lapse until you name a replacement.

Yes. Any out-of-state ("foreign") LLC or corporation registering to do business in California must appoint a California Agent for Service of Process, just like a business formed in-state must.

Naming yourself or a business partner costs nothing extra, but it means your name and address become part of the public record, and you're responsible for being available whenever a document might arrive. A professional registered agent service helps to keep your personal address off public filings, forwards documents to you digitally, and covers you if you travel or move. The service may be beneficial for owners who value privacy or flexibility.

Step 3: File Your California Articles of Organization

In California, Articles of Organization can only be filed online through Bizfile Online, the Secretary of State's online filing portal. Mail-in filing for this form has been discontinued, so plan on filing electronically.

When you go online, you will receive a Privacy Warning/Terms and Conditions of Use notice stating that all the information you share will become part of the public record and that you have no right to confidentiality in the information provided. This includes your phone number, mailing street address, and your email address. It also states the terms and conditions of use, who may use the online filing services, fees and refunds, etc. Read these warnings carefully and give your consent by checking the checkbox.
The next section is Submitter, where you will share the name of the submitter, phone number, and email address with extension.
Next comes the Professional Service notice, stating that if your business requires a license or certification, you must obtain the appropriate one.
Then comes the Limited Liability Company Name section, which includes a field asking whether a previously reserved name will be used for this filing.
Next, you will share your business address, city, state, and ZIP code, as well as your initial mailing address, which can be a P.O. box.
Next is the Agent for Service of Process step, where you select the agent type. There are two options: an individual or a California Registered Corporate Agent (1505).
Then comes the Purpose Statement, where you share your management structure, whether one manager will manage the LLC, more than one manager, or all LLC members. In the same section, you will also select your filing date. There are two options: the current date, which is most common, or a future filing date that holds your documents for future filing.
Next is the Attachments field, where you upload any necessary attachments for the filing.
Now comes Review and Signature. You review the entire form and provide an electronic signature. Signature options include single, multiple, or company signatures.
Next, you will pay the processing fee of $70. If you want a certified copy of the document, you will pay an additional $5 fee.

Standard processing usually takes 2 to 3 business days after your Form LLC-1 is submitted, though that window can stretch during the state's busier filing periods, such as December and January. Expedited processing is available directly through the state for an added fee if you need your LLC approved faster. These speed filing options are: Standard (2 to 3 days or more based on the state’s workload) 24-Hour Expedited Service for $350 + processing fee Same-Day Service for $750 + processing fee

Step 4: Create a California LLC Operating Agreement

You can write your own California operating agreement rules. Here are the points to add in an operating agreement for a California LLC:

General business information, including business address, member details, and LLC term
LLC structure (member-managed or manager-managed) and voting rights of members
Names and addresses of members, their roles, and ownership percentage
Current tax status and the process to change it in the future
A clause on how membership transfers or exits happen
Clear instructions on business dissolution and asset distribution

California law (California Corporations Code Section 17701.10) requires every LLC to adopt an Operating Agreement. Unlike your Articles of Organization, you don't file this document with the state. You should keep it with your company’s internal records.

Swyft Filings offers a custom operating agreement that adapts to your business needs as part of LLC formation in California.

California law recognizes oral and even implied Operating Agreements. In practice, an unwritten agreement is difficult to enforce and creates confusion the moment members disagree about who owns what. So, written agreements are strongly recommended.

If you're the only member, the law doesn't waive the requirement. You still need an Operating Agreement, even though there's no one else to negotiate terms with. It's what separates your business from you personally in the eyes of a bank, a court, or a future investor, which matters for maintaining your liability protection.

Since the Operating Agreement isn't filed with the state, amending it is an internal process. The process includes members agreeing to the change, documenting it in writing, and having all members sign the updated version or an amendment attached to the original. Check your existing agreement first. It may already spell out exactly how amendments should be made.

You can find a free California LLC Operating Agreement template through Swyft Filings. The template can help you outline your LLC’s ownership structure, management responsibilities, and operating procedures.

Step 5: File Your California Statement of Information

File your initial Statement of Information within 90 days of approval. The form costs $20 and confirms your business address, management structure, and registered agent. After the first filing, it's due again every two years, during a window tied to your original registration month.

Steps to file the California Statement of Information:

Create a Bizfile Online account or log into your existing one. The setup involves adding your email and creating a password. Your email will receive a code to activate the account.
Navigate to the Search page and locate your entity. Search by entity name or entity number.
Select your entity, then click "File Statement of Information" in the detail drawer on the right side of the screen.
Complete the form online and submit with the $20 filing fee.

If you miss the deadline, the Secretary of State may issue a delinquency notice. If the filing still isn't done 60 days after that notice, the Franchise Tax Board can assess a $250 penalty.

Note: Filing the Statement of Information online requires user access to be established on your business entity account. Without it, the filing option won't appear, so first-time filers may need to set up an account on Bizfile before starting the filing process.

Step 6: Get an EIN

The IRS will issue you a nine-digit number called an EIN. You need it for federal tax purposes, including hiring employees and starting a business bank account. You can apply for an EIN on the IRS website and get it for free in 15 to 20 minutes. The application requires the following details:

SSN or ITIN of the business owner
Business name or any DBA names
Mailing address
Entity details
Reason for applying

If you don't have a Social Security Number, you can apply by filing Form SS-4. Swyft Filings' paid LLC formation packages include preparation and filing of the EIN as part of the service.

What Are the Post-Formation Requirements for a California LLC

Business License

California doesn't issue one statewide general business license, but most cities and counties require their own local business license or "business tax certificate," so you'll want to check with the city where you operate. Separately, if your LLC sells or leases tangible goods that would normally be subject to sales tax, you need a seller's permit from the California Department of Tax and Fee Administration (CDTFA) before making any taxable sales. This applies to wholesalers and retailers alike, and the permit itself is free to obtain.

Finding the right licenses and permits for your California LLC doesn’t have to be complicated. Swyft Filings can research your business license requirements and create a customized report based on your business that clearly states which license you should apply for. You can also use our seller’s permit registration service, where our professionals review your information and submit your seller’s permit application to the appropriate state agency on your behalf.

Bank Account

Not a state filing requirement, but essential for keeping your California LLC's liability protection intact. Banks typically ask for your EIN, the filed Articles of Organization, a copy of your operating agreement, business name and address, and ID for the account signer. Any bank can open an account for a California LLC — no in-state branch requirement, though a local branch often makes verification easier. For a step-by-step guide to opening a business bank account, check out our guide, How to Open a Business Bank Account in 2026: A Step-by-Step Guide.

Franchise Tax

California isn't franchise-tax-optional; it's mandatory and the single biggest recurring cost of running a California LLC. Every LLC organized in California, registered with the Secretary of State, or doing business in the state owes an $800 minimum annual franchise tax to the Franchise Tax Board, due by the 15th day of the 4th month of the tax year (April 15 for calendar-year LLCs), paid with Form FTB 3522.

It applies regardless of income or activity; even a dormant LLC owes it. LLCs formed between 2021 and 2023 received a one-time first-year waiver of the $800 tax under Assembly Bill 85, but that exemption expired at the end of 2023. LLCs formed in 2024, 2025, or 2026 owe the full $800 starting in their first year; there is currently no first-year waiver.

Under California's Senate Bill 122, LLCs that register with the Secretary of State during the 2027, 2028, or 2029 tax years pay a reduced first-year annual tax of $400 instead of $800. Starting in year two, the tax returns to the full $800 rate. This relief doesn't apply retroactively, so an LLC formed at any time in 2026 or earlier still owes the full $800 for its first year.

DIY vs. Swyft Filings: California LLC Formation Differences

Starting an LLC in California yourself is possible, but it takes time, research, and follow-up. Here's how doing it yourself compares to forming your California LLC with Swyft Filings.

Item	DIY	Swyft Filings
California LLC Operating Agreement	You draft your own from scratch or use a free template	A custom LLC operating agreement is included
California Registered Agent	You handle it on your own	Professional RA service is available
Attorney access	You'd need to hire one separately	Personalized guidance from a business attorney is available
Domain Name + Website	You build and host it yourself	Done-for-you website + domain included, through partner UENI
California Business License Research	You do yourself	Available as an add-on
California DBA filing	You handle yourself	Available as an add-on
Document Vault	Not available. You manage your own files	Secure online portal, 24/7 document access
California Compliance management	You track deadlines yourself	Compliance support is available through ComplianceGuard
Tax consultation	Not included. You'd book this separately	Free 30-minute tax consultation included, through partner 1-800Accountant
Support	None	Lifetime customer support

How Much Does an LLC Cost to Start in California?

Item	Cost
Articles of Organization (Form LLC-1)	$70
Statement of Information (Form LLC-12), initial filing	$20
Name reservation (optional)	$10
Annual minimum franchise tax	$800 (or $400 for LLCs formed 2027-2029, first year only)

Let Swyft Filings Handle Your California LLC Paperwork

Since 2015, Swyft Filings has helped over 600,000 owners with business formation and compliance management. Our business formation specialists manually review your application for accuracy. Take the first step toward building your LLC with confidence. Skip the guesswork and let Swyft Filings handle your paperwork!

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Swyft Filings California Resources

*Disclaimer: This guide provides general information about forming an LLC in California and is not a substitute for legal, tax, or financial advice.*

Check LLC Formation Guides for Other States

LLC rules, fees, and processing times vary by state. Select a state below to check its specific costs and filing requirements.

How to Form California LLC

Learn how to start a California LLC with our comprehensive step by step guide.

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FAQ's

Starting a business can feel complex. We're here to provide clear answers to some of the most common questions entrepreneurs ask.

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You still owe the $800 annual minimum franchise tax to California, even with zero income, unless your LLC qualifies for the SB 122 first-year reduction described above. Federal income tax works differently. If your LLC genuinely had no income and no deductible expenses, there may be nothing to report, but talk with a tax professional about your specific situation before assuming you owe nothing.

At minimum, you need an available business name, a registered agent with a street address in California, and your completed Articles of Organization. After the state approves your filing, you'll also need an Operating Agreement, a Statement of Information within 90 days, and an EIN from the IRS.

Select the Basic LLC package with Swyft Filings to form your free California LLC. We prepare and file your California LLC formation documents, and you only pay the mandatory California state fee.

Forming a free California LLC is a good way to get started. Select a higher package to include California registered agent services, EIN, attorney support, and other California LLC services.

Yes, you can register a California LLC without hiring a lawyer. You can either start an LLC online through the California Secretary of State website using Bizfile Online or choose to use a business formation service that guides you through the process and prepares the required documents.