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 annual LLC 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 annual LLC tax every year + $20 Statement of Information every 2 years, plus a separate LLC fee once California total income reaches $250,000 ($900 / $2,500 / $6,000 / $11,790 by tier) |
| Annual report deadline | Statement of Information every 2 years, due on the formation anniversary; the $800 annual LLC tax is due every year |
| 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 commercial registered-agent service (yearly fee set by the provider)
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 | $800+ | Low | Consumer market |
| Texas | $300 | $0 (depends) | Medium | No income tax + market |
| Florida | $125 | $138.75 | Low | Latin market + no tax |
| Delaware | $110 | $400 | High | Large corporations |
| Wyoming | $100 | $60+ | High | Cost + privacy |
| Nevada | $425 | $350 | High | Asset protection |
Related information
Last verified: 2026-09-02. 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 California Secretary of State, Business Programs Division handles LLC registrations. Generally accepts filings:
- Online (fastest)
- By mail
- In person, where the office offers it
The steps that are the same in every state — EIN, business bank account, annual report, estimated taxes, ITIN ownership and the common errors — are maintained once, on the LLC formation hub.
California-specific resources
- California Secretary of State, Business Programs Division — LLC filings and business search
- California Franchise Tax Board (FTB) — 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: 2026-09-02.
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