Forming an LLC in California
An LLC (Limited Liability Company) is the most common business structure for immigrant entrepreneurs in the US. Personal asset protection, tax flexibility, and low administrative cost.
Why California
Largest consumer market in the US (40M residents) Access to Silicon Valley + Hispanic business communities (LA, OC) $800 minimum franchise tax — even if your LLC generates no income Accepts ITIN for foreign-owner LLCs without restrictions
Key facts about California
| Item | Information |
|---|---|
| Formation fee (initial) | $70 |
| Annual fee | $800 minimum franchise tax + $20 annual report |
| Annual report deadline | Every 2 years (not annual) — Statement of Information due on formation anniversary |
| Accepts foreign owners | ✅ Yes (includes ITIN holders) |
| Requires Registered Agent | ✅ Yes (must have physical address in California) |
| Operating Agreement required | ⚠️ Not by law but highly recommended |
| Approval time | 1-3 weeks (online faster) |
Steps to form an LLC in California
1. Choose a name
- Must end in “LLC”, “L.L.C.”, or “Limited Liability Company”
- Unique in California
- Cannot include restricted words (Bank, Insurance, Attorney, etc.) without authorization
2. Designate a Registered Agent
- Resident individual in California or authorized service with physical address in California
- If you don’t have an address in California, hire a service: $50-$300/year (Northwest, ZenBusiness, Incfile, etc.)
3. File Articles of Organization
- Formation document registering the LLC with the state
- Fee: $70
- Filing: online (fastest), by mail, or in person
- Official platform: California Secretary of State
4. Create Operating Agreement
- INTERNAL document (not filed with state)
- Defines how the LLC operates: members, profit distribution, decision-making, exits
5. Get EIN (Employer Identification Number)
- LLC’s federal tax identification number
- FREE at irs.gov
- With SSN: instant online
- With ITIN: by mail (4-6 weeks) or fax (4 days)
- No SSN/ITIN: fax or mail (Form SS-4)
6. Open bank account
- Need: EIN, Operating Agreement, Articles of Organization, personal ID
- Foreign-owner friendly: Bluevine, Mercury, Relay, Wise Business, Capital One Spark
State comparison
| State | Formation Fee | Annual Fee | Privacy | Best for |
|---|---|---|---|---|
| California | $70 | $820+ | Low | Consumer market |
| Texas | $300 | $0 (depends) | Medium | No income tax + market |
| Florida | $125 | $138.75 | Low | Latin market + no tax |
| Delaware | $110 | $300 | High | Large corporations |
| Wyoming | $100 | $60 | High | Cost + privacy |
| Nevada | $425 | $550 | High | Asset protection |
Related information
Last verified: 2026-07-11. General information — always verify with California Secretary of State before filing.
State services and resources in California
Where to register your LLC in California
The Secretary of State office (or equivalent) of California handles LLC registrations. Generally accepts filings:
- Online (fastest, 1-3 days)
- By mail (4-8 weeks)
- In person (varies by state capital)
Post-formation requirements
- EIN from IRS (free, online, ~15 minutes)
- Business bank account — most require LLC docs + EIN
- State/local licenses depending on business type
- Annual Report yearly (keeps LLC active)
- Quarterly tax estimates if income > $1,000/quarter
LLC for immigrants with ITIN
- Permitted: ITIN holders can be LLC members
- Banking: business accounts with ITIN available (BlueVine, Mercury, Lili — verify policies)
- Tax filing: Schedule C on your 1040 with ITIN; Form 1065 for multi-member LLC
Common errors
- Forgetting annual report (can dissolve LLC)
- Mixing personal and LLC finances (loses limited liability protection)
- No Operating Agreement (even single-member)
- Operating in another state without registering as foreign LLC
California-specific resources
- California Secretary of State — LLC search + filings
- California Department of Revenue — state business taxes
- SCORE (Service Corps of Retired Executives) — free small business mentoring
- SBA (Small Business Administration) — free counseling via SCORE and SBDC, open to everyone. ⚠️ SBA loans (7(a), 504, microloans) are closed to non-citizen owners since March/April 2026 — including green-card holders. See who can still use each SBA program and the CDFI lenders that do accept an ITIN.
Last verified: 2026-07-11.
General procedural information for educational purposes. Not legal, tax, or immigration advice. Laws and fees change — verify with the issuing agency before taking action. For case-specific guidance, consult a licensed immigration attorney or other appropriate professional.
Related procedural information
- ITIN — file business taxes without SSN — ITIN holders can form and operate LLCs
- ITIN-friendly business banking — checking accounts that open without an SSN
- USCIS forms — H-1B, L-1, E-2 investor visas — when LLC ownership supports a visa case
- State income tax obligations — business taxes vary by state
- Find an immigration attorney — for complex investor or work-visa cases tied to your LLC