Forming a limited liability company (LLC) is one of the smartest first moves for a California small business — it separates your personal assets from your business and adds credibility. Here is how to set one up correctly.
Step 1: Choose and check your name
Pick a name that includes “LLC” or “Limited Liability Company” and isn’t already taken. Search the California Secretary of State’s business database to confirm it is available before you file.
Step 2: File the Articles of Organization (LLC-1)
File Form LLC-1 online with the Secretary of State and pay the filing fee (about $70). You’ll name a registered agent who accepts legal mail for the company.
Step 3: Create an operating agreement
California requires an operating agreement, even for a single-member LLC. It defines ownership, management, and how profits are split. You keep it in your records; you don’t file it.
Step 4: Get an EIN
Apply for a free federal Employer Identification Number from the IRS. You’ll need it to open a business bank account, hire, and file taxes.
Step 5: File the Statement of Information (LLC-12)
Within 90 days of forming, file Form LLC-12 (about $20), then every two years after.
Step 6: Handle the franchise tax
California charges an annual minimum franchise tax (commonly $800) — confirm the current amount and any first-year relief with the Franchise Tax Board. Keep a separate business bank account so your liability protection holds up.
How Curbside Legal helps
We prepare your full California LLC formation — Articles of Organization, operating agreement, EIN guidance, and Statement of Information. Get the DIY LLC packet or have us do it.
Curbside Legal is a legal document preparation service, not a law firm, and does not provide legal advice. Filing and state fees are separate.