Start your California LLC today with our step by step guide on how to form LLC in California. We shared some helpful tips that will save your time and money in Setting up LLC.
A limited liability company in California is a business formation in which the liability of the members & owners is limited. This type of company is best for startups as it promises a sense of protection. If you are searching for the legit way to creating an LLC in California, then this comprehensive guide is certainly the end of your search as it has everything you need to know about starting a limited liability company in California.
Like other US States, there are certain documents to file, fees to pay, and other things to comply with to start a limited liability company in California. In this article, I am going to share steps to start a limited liability company in California and believe me, and it is not that difficult to form one. Also, share this piece of information with everyone who might find it helpful.
How to Form an LLC in California
The motive to start an LLC in California should be fair, and you cannot open a limited liability company for an insurance or bank corporation. Besides, anyone can open an LLC in California by following the instructions carefully.
Choosing a name for the limited liability company
The first step to forming an LLC in California is to choose a name that complies with the requirement of the state. According to the lawsuit, the limited liability company must have LLC/L.L.C in its name. Also, make sure that the name you opt for is available to use and is not taken by any other business company in California. You can read a comprehensive set of rules that reflects naming the LLC — [HERE]
If you want to confirm that a name is available or not, then you can check its availability online or call the department of state.
Get a Registered Agent for the LLC
It is mandatory to have a registered agent for the company in California. A registered agent can be a resident individual of California or any corporation that has the authority to do business in California. A registered agent is a person/corporation which acts legally on behalf of the firm; it will be entitled to receive notices in the name of the firm. Also, the registered agent must have a physical street address in California to be eligible to assign oneself as an agent. There are agencies that charge an extra sum to act as the registered agent of the limited liability company.
Perk: You can also become the registered agent for your company, but you will be responsible for the legal lawsuits that have a stake in the company.
Filing the California Articles of Organizations
To start a California LLC, you are required to file the Articles of Organizations with the State of California. A person can file this document online through the official LLC formation website or can mail it by post or submit in-person. To download the document form, click [HERE]. The cost of filing it online is about $75, and submitting it in person might increase it by $15 as a counter drop free.
Mail Address Submission Address
Secretary of State 1500 11th St.
Business Entities Filings Sacramento, CA 95814
P.O. Box 944228
Sacramento, CA 94244
File the Form LLC-12
State of California requires you to file Form LLC-12 (Statement Form) within 90 days of the formation of the limited liability company. The easiest way to file this form is via online by clicking [HERE]
Filing this form will cost $20
You can also mail the physical copy of the form to California Secretary of State. Download and fill this form and mail it to the below-mentioned address:
Secretary of State, Statement of Information Unit
P.O. Box 944230
Sacramento, CA 94244
Unlike other states, It is mandatory to file an Operating Agreement in California. An operating agreement is a document that has personal information about the limited liability company. It is certainly not a public document as it has crucial information like investments of the company, profit allocation, member information, and other information. In most states, it is not mandatory to have this document, but in California, to start an LLC, you are required to have an operating agreement.
The LLC’s in California are entitled to pay both the federal & California taxes. If you are starting an LLC, then you are supposed to pay tax according to the type of the company. The term Tax in California has a comprehensive part in the whole process, and it is not possible to state everything in here, and so you can check with the California Department of Taxation.
Making the company stable is more important than starting it in California. There are annual reports to be filed in order to maintain the smooth running of the company. It is always better to hire a registered agent so that you can focus on the work & growth of the company.
Are you facing a problem in creating an LLC in your state? If yes, then don’t worry, we write a guide on how to form a business in your state. Here is a guide on forming an LLC in Florida and LLC new york.