Everything You Need to Know About California LLCs
If you're looking to incorporate your business in California, one of your choices is to form a Limited Liability Company (LLC)2 min read
If you're looking to incorporate your business in California, one of your choices is to form a Limited Liability Company (LLC). An LLC is an unincorporated business entity, meaning that no shares are issued by the company and the company exists as its own legal and tax entity. An LLC can be formed with one or multiple members, and provides its owners with personal liability protection. In this article we'll provide you with an overview of California LLCs and answer some of the frequently asked questions about forming an LLC in California.
Do I need to form an LLC in California?
Whether or not you need to form an LLC in California depends on where you conduct business activities and what type of business you are operating. If you are operating a business in California, you need to form a California LLC. However, if you are conducting activities in multiple states, you may need to register to do business in each state, and in some cases, you may need to form a separate LLC in each state. Additionally, certain types of businesses may need to obtain a business license or operate as another type of business entity in order to legally conduct business in California.
What is the process of forming an LLC in California?
Forming an LLC in California involves a few simple steps. First, you will need to choose a name for your LLC. The chosen name must be distinguishable from all other business entities on file with the California Secretary of State, and any name ending in "LLC" or "Limited Liability Company" must include these words in its name. Then, you will need to file articles of organization with the California Secretary of State, which outlines basic details about your LLC, such as its name, purpose, address, and registered agent. Lastly, you will need to create an operating agreement, which outlines the structure of your company, the members’ roles and obligations, and the managerial and financial decision-making processes.
What are the filing fees for forming an LLC in California?
The filing fee for forming an LLC in California is $70. You may also choose to pay an additional fee for expedited filing, which guarantees two business-day processing of your LLC formation paperwork.
What are the ongoing requirements for California LLCs?
California LLCs must comply with some ongoing requirements. These include filing annual reports, maintaining accurate books and records, and paying any required federal, state, and local taxes. Additionally, California LLCs must comply with all state and federal laws governing LLCs, which may include registering with the California Department of Revenue, securing the necessary business licenses or permits, and obtaining all necessary insurance coverages.
Is there a lawyer or legal service I can use to help form my LLC in California?
Yes, there are legal services like UpCounsel that specialize in helping people form LLCs in California. UpCounsel's network of experienced lawyers can help you through the process of forming an LLC in California, from choosing a name to filing the initial paperwork, to creating a customized operating agreement. UpCounsel's lawyers have an average of 14 years of experience and their profiles display client ratings and reviews of recent work.
Topics:
