How to Register a Business in California: Step-by-Step Guide

Registering a business in California is not one form. It is a sequence of decisions and filings that can include choosing a name, choosing a structure, filing formation documents, getting a tax ID, registering for applicable taxes, and obtaining any required local or industry-specific licenses before you begin operating. What “registering” actually requires also depends on your structure: forming an LLC or corporation means filing formation documents that create a new legal entity, while operating as a sole proprietor or general partnership does not require that same state-level entity filing, though you will likely still need a local business license and, if you use a name other than your own, a fictitious business name filing.

Quick answer: To register a business in California, choose your entity type, confirm your business name is available, file formation documents with the California Secretary of State (Articles of Organization for an LLC, Articles of Incorporation for a corporation), get a federal EIN, file your initial Statement of Information within 90 days, register for state taxes, and obtain any required local business license or permit. LLCs, corporations, LPs, and LLPs may be subject to California’s $800 minimum annual franchise tax to the Franchise Tax Board, but first-year rules differ by entity type, so confirm the current requirement for your specific structure before filing.

This guide walks through the mechanics of the registration itself: forms, fees, and deadlines. For a broader look at the legal decisions that come before and after registration, including choosing between an LLC and a corporation, contracts, hiring, and IP protection.

A note on currency: this guide includes specific filing fees, tax amounts, and deadlines that California updates from time to time. The figures below reflect our research as of 2026, but fees and rules can change. Confirm current numbers ats os.ca.govand ftb.ca.gov before filing, or ask us to confirm them for you.

Step 1: Choose Your Business Structure

Your entity choice affects your liability exposure, your taxes, and how much paperwork you’ll deal with going forward.

If you are unsure which structure fits your situation, this is the single decision most worth a short consultation before you file anything. Undoing the wrong entity choice later, through a conversion or dissolution and refiling, costs far more than getting it right the first time.

Step 2: Choose and Clear Your Business Name

Before filing anything, confirm your name is actually available.

• Search the California Secretary of State’s business name database through bizfileOnline to confirm no other registered entity has a name that is the same or confusingly similar to yours.
• Check the U.S. Patent and Trademark Office database for existing federal trademarks that could conflict with your name, even if the name is available at the state level.
• Confirm domain and social handle availability if an online presence matters to your business.

If your entity type requires a specific designator, an LLC name must include “LLC,” “L.L.C.,” or “Limited Liability Company,” and cannot include restricted words like “bank,” “trust,” “incorporated,” or “insurance” without additional approval.

You can reserve a name for up to 60 days before filing, for a modest filing fee set by the Secretary of State, though a reservation is optional and does not guarantee the name clears trademark review. Confirm the current reservation fee on the Secretary of State’s fee schedule before filing.

Step 3: File Your Formation Documents With the Secretary of State

This is the step that legally creates your entity. File through bizfileOnline.sos.ca.gov, the California Secretary of State’s official filing portal.

• LLC: File Articles of Organization (Form LLC-1). Filing fee: $70.
• Corporation: File Articles of Incorporation (Form ARTS-GS for a general stock corporation). Filing fee: $100.
• Limited Partnership: File a Certificate of Limited Partnership (Form LP-1).
• LLP: File an Application to Register a Limited Liability Partnership (Form LLP-1); available only to specific licensed professions such as law, accounting, architecture, and engineering.
• General Partnership: No state filing is legally required to exist, but you can optionally file a Statement of Partnership Authority (Form GP-1) to put your authority on the public record.

Processing times vary with filing volume; check the Secretary of State’s current processing-time information before you file if your timeline is tight. Expedited processing is available for an additional fee.

Step 4: Get a Federal EIN

Many businesses need an Employer Identification Number for federal tax purposes, hiring employees, banking, or other business requirements. Apply directly through the IRS EIN application portal, free of charge. The IRS ties your EIN to your legal entity name, so most entities apply once their formation documents are in hand; sole proprietors and other structures may have a different sequence, so confirm the current IRS guidance for your situation.

Step 5: File Your Initial Statement of Information

Within 90 days of filing your Articles of Organization or Incorporation, California requires LLCs and corporations to file an initial Statement of Information with the Secretary of State. LPs and LLPs have different filing requirements, so confirm the applicable requirements for your specific entity with the California Secretary of State. This filing identifies your business address, officers or managers, and registered agent for service of process.

• After the initial filing, California stock corporations generally file a Statement of Information every year, while LLCs generally file every two years. Confirm the current cadence and fee for your specific entity type on the Secretary of State’s website.
• Missing this deadline can result in penalties and, eventually, suspension of your entity’s good standing.

Step 6: Understand Your California Tax Obligations

This is where many new business owners are caught off guard, because it is separate from the Secretary of State filing entirely.

• $800 minimum annual tax: Applicable LLCs, LPs, LLPs, and corporations registered or doing business in California may owe this to the Franchise Tax Board, but first-year rules differ by entity type. For LLCs, LPs, and LLPs, entities organized or registered on or after January 1, 2024 generally became subject to the $800 annual tax in their first taxable year after the temporary exemption under Assembly Bill 85 expired (that exemption had applied only to entities formed between January 1, 2021, and December 31, 2023). Corporations are subject to different rules: newly incorporated or qualified corporations are generally not required to pay the minimum franchise tax in their first taxable year, though they may still owe tax based on net income for that year. Confirm the current FTB rules for your specific entity type before filing.
• LLC gross receipts fee: LLCs with total California income above $250,000 owe an additional fee on top of the $800 minimum tax, on a sliding scale based on revenue.
• Seller’s permit: If you sell tangible goods, you generally need a seller’s permit from the California Department of Tax and Fee Administration before making your first sale.
• Employer registration: If you have employees, register with the Employment Development Department for payroll tax withholding and unemployment insurance.

Step 7: File a Fictitious Business Name Statement (If Applicable)

If you plan to operate under a name different from your registered entity name, or your legal name as a sole proprietor, you generally must file a Fictitious Business Name Statement (DBA) with the county clerk where your principal place of business is located. In Los Angeles County, this is filed with the Los Angeles County Registrar-Recorder/County Clerk. Publication requirements, deadlines, and fees are set at the county level and vary; many counties require publishing the statement in a local newspaper of general circulation within a set period after filing and then recording proof of publication, so confirm the specific rule for your county before relying on a general timeline. DBA filings are generally renewed periodically (five years in many counties), again subject to county-specific rules.

Step 8: Get Required Local Licenses and Permits

California does not have one universal statewide “business license.” Instead, most cities and counties require their own local business license or tax registration, and certain industries need state or federal permits on top of that.

• City business license or business tax registration: Required by most California cities, including Los Angeles, to legally operate within city limits.
• Zoning and building permits: Required if you are opening a physical location or making improvements to a leased space.
• Industry-specific licenses: Restaurants, contractors, healthcare providers, cosmetology businesses, and many other industries require additional state licensing boards’ approval.
• Seller’s permit and any applicable local business tax certificate, as noted above.

Because requirements vary significantly by city and industry, checking with your local city clerk’s office and relevant licensing board is a necessary step, not an optional one.

Step 9: Open a Business Bank Account and Set Up Compliance Basics

Once you have your formation documents, EIN, and any required licenses, open a dedicated business bank account. Keeping personal and business finances separate helps preserve the distinction between you and the business and supports the liability protection associated with an LLC or corporation. For LLCs, drafting an operating agreement, even for a single-member LLC, and for corporations, adopting bylaws and holding an organizational meeting with documented minutes, are basic formalities that support that same liability shield.

If you are forming the business with one or more co-founders, a clear operating agreement or partnership agreement now is also a meaningful protection against the kind of ownership and management disagreements covered in our guide to partnership disputes in California. For important vendor, client, or lease agreements, it’s also worth considering whether an appropriately drafted integration clause fits the transaction and how it interacts with prior communications.

California Business Registration Costs at a Glance

Common Mistakes When Registering a Business in California

• Assuming every business qualifies for a first-year minimum-tax exemption, or assuming none do. LLCs, LPs, and LLPs generally owe the $800 minimum annual tax from their first taxable year now that the temporary AB 85 exemption has expired, while corporations are subject to different first-year rules. Confirm the applicable FTB rule for your specific entity type rather than assuming either way.
• Missing the 90-day Statement of Information deadline. This is separate from your formation filing and is easy to overlook.
• Skipping an operating agreement or bylaws. Even solo-owned entities benefit from internal governing documents that support the legal separation between the business and its owner.
• Forgetting the local business license. State-level registration does not automatically satisfy city requirements.
• Forming out of state to “avoid” California tax. A Delaware or Nevada entity doing business in California still owes the franchise tax, still needs a registered agent, and still must file a Statement of Information as a foreign entity qualified to do business here.

Frequently Asked Questions

How long does it take to register a business in California?

Processing times vary with the Secretary of State’s current filing volume. Expedited processing (typically 24-hour or same-day) is available for an additional fee if your timeline is tight; check the Secretary of State’s site for current standard and expedited processing times before you file.

Do I need a lawyer to register a business in California?

It is not legally required for most straightforward LLC or corporation filings, but legal guidance is valuable when choosing between entity types, drafting an operating agreement or bylaws, structuring ownership among multiple founders, or handling a business with licensing, investor, or industry-specific complexity.

What is the difference between an LLC and an S-Corp in California?

An LLC is a legal entity type. An S corporation is generally a federal tax classification rather than a separate California entity type; an eligible corporation or LLC may elect S corporation tax treatment, subject to applicable federal and California requirements. Many California small businesses form as an LLC first and later elect S-Corp tax treatment once revenue justifies it, but eligibility and the tax tradeoffs depend on the specific business and should be evaluated with a tax professional.

Do I still owe the $800 franchise tax if my business made no money?

It depends on the entity type. LLCs, LPs, and LLPs are generally subject to the $800 minimum tax regardless of profitability, for every year the entity remains active, now that the temporary first-year AB 85 exemption has expired. Corporations have a separate, standing first-year exemption from the minimum tax, though they may still owe tax on any net income earned that year. Confirm the current FTB rules for your specific entity.

Can I register my business online?

Yes. California’s Secretary of State allows LLC and corporation formation filings through the bizfileOnline portal.

Key Takeaways

• Registering a business in California involves multiple, separate filings: entity formation with the Secretary of State, an EIN from the IRS, a Statement of Information within 90 days, state tax registration, and local licensing.
• LLCs pay a $70 filing fee; corporations pay $100. Applicable LLCs, LPs, LLPs, and corporations may owe an $800 minimum annual tax, but first-year rules and exceptions vary by entity type, so confirm the current FTB requirements before filing.
• A DBA filing and local business license are usually required in addition to state-level registration.
• Internal governance documents like an operating agreement or bylaws help maintain the legal separation between the business and its owners and support good corporate or LLC formalities.

Related Reading

• Starting a Business in California: Your Legal Checklist
• Understanding Partnership Disputes in California
• Integration Clauses: What They Are and Why Your Business Needs Them
• Understanding the Statute of Frauds in California

Get Help Forming Your California Business

Choosing the right structure and getting the formation paperwork right the first time sets the foundation for everything that follows, contracts, hiring, fundraising, and eventual disputes. Rokita Law helps founders and small business owners in Los Angeles form entities correctly, draft governing documents, and stay compliant as the business grows.

Call Rokita Law at (888) 765-4825 or schedule a consultation to get your business registered the right way.

Attorney Advertising Material. Rokita Law, P.C, 9171 Wilshire Bl. Suite 500 Beverly Hills, CA 90210. Rokita Law, P.C. advertises on this post, and provides this content for informational purposes only. The statement does not intend to provide legal advice, and people should not interpret it as such. Results may vary. This is not a guarantee, warranty, or prediction regarding the outcome of your case. Posts are for educational purposes only and are based on California law only, except for trademarks and copyrights filed with the US Patent and Trademark Office (USPTO). Filing fees and franchise tax figures are current as of 2026; confirm current fees at sos.ca.gov and ftb.ca.gov before filing.