LLC Formation California

LLC Formation California
CA LLC Formation

Form Your California LLC The Right Way.

CPA-led β€” not a $99 LegalZoom template

Most CA LLC formations are done wrong: missing BOI report, no operating agreement, never analyzed for S-Corp election. We do it right β€” and tell you if LLC is even the right choice.

βœ“ Licensed CPA #158599βœ“ $1M Audit Defenseβœ“ Free 30-Min Consultation
Entrepreneur signing California LLC formation documents

What\'s Actually Included

A complete formation package β€” not just a filed Articles of Organization.

CA SOS Articles of Organization

Form LLC-1 filed with CA Secretary of State. Includes name reservation if needed, registered agent setup, management structure (member-managed vs manager-managed) β€” all designed correctly for your situation.

Federal EIN

Tax ID number from IRS, applied same day. Required for bank account, payroll, and 1099 issuance. We never let clients use SSN as business identifier.

Statement of Information (LLC-12)

Required within 90 days of formation, then every 2 years. We file it on time + remind you of the renewal. $20 fee.

Operating Agreement (Custom)

Not a template β€” a CPA-customized agreement that covers ownership %, distribution rules, voting, dissolution. Required by CA law; banks will demand to see it.

BOI Report (FinCEN)

Beneficial Ownership Information filed within 30 days of formation. Required by Corporate Transparency Act. Penalty for missing: $591/day. We file it automatically.

S-Corp Election Analysis

We run the math: at what SE income does S-Corp election save more than it costs? For your specific situation. If election makes sense, we file Form 2553 within the 75-day window.

Mistakes We See Constantly (From DIY Filings)

Real issues we\'ve had to fix after clients tried to form themselves.

Wrong Management Structure

Member-managed vs manager-managed has huge implications for outside investors and operations. Most DIY filings pick wrong because they don\'t know the difference.

Missing BOI Report

Most DIY filers don\'t know FinCEN BOI exists. The $591/day penalty for missing it can hit $200K within a year.

No Operating Agreement

CA legally requires one. Banks won\'t open business accounts without it. Cobbled-together internet templates fail to address ownership disputes.

Used Home Address as Registered Agent

Your home address becomes public record. Process servers can deliver lawsuits at your front door. Better: registered agent service ($150/yr).

Missed S-Corp Window

You have 75 days from formation to elect S-Corp for the current year. Miss it and you wait until next tax year β€” losing months of SE tax savings.

Wrong Entity Choice Entirely

Many "LLC needed" cases are better as sole prop (saves $800/yr franchise tax) or S-Corp (saves more on SE tax). LegalZoom can\'t tell you which is right.

CA LLC Formation β€” Frequently Asked Questions

How much does CA LLC formation actually cost?

Total first-year cost: $70 SOS filing fee + $20 Statement of Information + $800 FTB minimum franchise tax = $890 government fees. Our service to handle filing, EIN, operating agreement, BOI report, and S-Corp election analysis: $750. So all-in first year: ~$1,640.

When does the $800 franchise tax kick in?

CA LLCs and S-Corps owe the $800 minimum every year, even if no income. Your first $800 is due by the 15th day of the 4th month after formation. New LLCs formed in 2024-2025 had a first-year waiver, but that expired β€” most formations now owe $800 in year one.

Do I need a single-member LLC or multi-member?

Depends on your situation. Single-member LLC = simpler, "disregarded entity" by default (Schedule C with personal 1040). Multi-member = partnership taxation (Form 1065 required). Either can elect S-Corp once SE income exceeds ~$40K. We help you pick during the discovery call.

What about the new BOI (Beneficial Ownership) report?

Every LLC must file a Beneficial Ownership Information report with FinCEN within 30 days of formation. We include this in our formation package. Penalties for missing it are $591/day β€” don't DIY this.

How long does formation take?

CA online filing: 5-7 business days for SOS approval. EIN: same day if applied online. Operating agreement + bank-ready docs: we deliver within 10 business days of engagement.

Form Your CA LLC With a CPA on Your Side

Free 30-min discovery call. Flat fee $750 + state fees. Done in 10 business days.

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