How to Create a California LLC

California LLCs are subject strict formation requirements.

Limited liability companies (LLCs) are formed and maintained at the state level. Requirements and financial obligations for LLCs vary depending on the state. LLC owners can choose to be labeled as a sole proprietor entity, a partnership or a corporation for federal tax purposes. To form a California LLC, the owners must complete and submit a document titled articles of organization.

Instructions

Create a California LLC

1. Verify your company's ability to become an LLC in California. California is one of the few states that does not allow LLCs to provide professional services. Professional services include accounting, architecture and legal advice, among others. If you are unsure whether your LLC provides a professional service, contact the authority that granted you professional licensing or certification.

2. Select a company name for your LLC in accordance with California laws. Your company name must be different from the name of any other California business or foreign company registered with California. Your company's name must end with the phrase "limited liability company" or the abbreviation "LLC" or "L.L.C."

3. Download the California articles of organization form (Form LLC-1) from the California Secretary of State website, or request a copy from a branch of the Secretary of State office. This document is available on the "Forms, Samples and Fees" page of the website.

4. Complete the articles of organization by entering all required information in the spaces provided. Enter the name of your LLC and the name and address of your company's registered agent. Define the management structure of your LLC by selecting one of the following: "One Manager," "More Than One Manager" or "All Limited Liability Company Member(s)."

5. Compose an operating agreement for your LLC. California requires an LLC to have an operating agreement before it legally can do business in the state. An LLC operating agreement typically includes information regarding company meetings, management and distribution of ownership among members. California does not require LLC owners to file the operating agreement with the state government.

6. Submit the articles of organization and the appropriate fees to the California Secretary of State office. The base fee for filing the articles is $70. The filing fee increases if you request expedited processing, additional copies of the articles or any other extra services.

   The completed form along with the applicable fees can be mailed to:

   Secretary of State

   Document Filing Support Unit

   P.O. Box 944228

   Sacramento, CA 94244-2280

   [phone]

   sos.ca.gov

   The documents also may be delivered in person at:

   Office of Secretary of State

   1500 11th Street, 3rd Floor

   Sacramento, CA 95814

References

• California Secretary of State: Business Entities
• Citizen Media Law Project: forming an LLC in California

Resources

• California LLC Forms: Articles of Organization (Form LLC-1) (PDF)