California LLC - How to Start an LLC in California - Short Version - YouTube

How to form an LLC in California.

If you are interested in starting an LLC in the Golden State, you are not alone.

California has one of the highest rates of newly formed LLCs in the country.

Every state has slightly different requirements for forming an LLC.

Follow along closely to learn the required steps for creating your own Limited Liability

Company in the state of California.

There are two ways to form an LLC in California: You can form one yourself, or you can hire

a service to do it for you.

Let’s start by looking at the six basic requirements to form an LLC in California on your own:

1. Name your LLC.

You’ll need to choose a company name that complies with California naming requirements,

and do a name search on the State of California website to make sure the name isn’t already taken.

You should go ahead and register the web domain for your business website and email as well.

2. Choose a registered agent.

California requires that you nominate an Agent for Service of Process, more commonly known

as a registered agent.

The registered agent can be an individual within the company including yourself, or

you can hire a professional service authorized to do business in California.

3. File the Articles of Organization.

To register your California LLC, you will need to file the Articles of Organization

with the Secretary of State.

This can be done online, by mail, or in person, and will cost 70 dollars.

You will need to state whether your LLC will be member-managed or manager-managed.

Member-managed means all members of the LLC manage the company.

This is good for small organizations, where everyone is involved in day-to-day operations.

The second option is manager-managed, where individuals are appointed to manage the LLC.

This is appropriate for larger organizations, where not everyone is involved in the day-to-day

affairs of the business.

4. File the Initial Statement of Information.

California requires all LLCs to file an Initial Statement of Information (Form LLC-12) with

the California Secretary of State within 90 days of forming your LLC.

This can be done online, in-person, or by mail.

5. Create an Operating Agreement.

You should also create an operating agreement to establish ownership terms and member roles.

This is an internal document for reference, and does not need to be filed with the state

of California.

This foundational document is the core of your LLC, and will help you maintain your

organization, as well as further establish your LLC as a separate legal entity.

6. Obtain an EIN.

Lastly, you’ll need to get an Employer Identification Number, or EIN, from the IRS.

Also known as a Federal Tax Identification Number, your EIN is like a social security

number for your LLC and is important for taxes and banking.

EIN’s are free of charge, and can be obtained from the IRS online or through the mail.

And with that, you will have formed a California LLC on your own.

Keep in mind, California LLCs are required to pay an annual Franchise Tax of 800 dollars

per year.

Option 2.

Hire a Professional Service

The second way to create a California LLC is to hire a professional service to create

your LLC for you.

Hiring a professional service to file your forms and act as your registered agent for

the LLC will cost you an additional 50 to 150 dollars.

However, there are several benefits to working with a pro:

A hired registered agent helps with getting your reports filed on time, helps you stay

organized by keeping your business mail separate, and is available at all regular business hours

to accept official mail and legal papers on your LLC’s behalf.

A final and important additional benefit of using a service is privacy: a professional

service will provide a level of privacy by withholding your personal name and home address

from the LLC’s contact information.

There are many reasons you might not want your personal information easily accessible

and associated with your business- hiring a professional LLC formation service is an

easy way to accomplish this.

Now that you have seen the different requirements and ways you can form an LLC in California,

visit our site and take some time to research your options and establish a solid foundation

for your business activities.

Click on the links in the description below to research the top 5 professional formation

services, or get more information on how to form a California LLC on your own.

We offer a host of free templates and tools to help accelerate your small business, from

operating agreements to business plans- all free of charge.

Visit us at HowtostartanLLC.com