An ultimate Guide to set up an LLC in the state of California
What is a California LLC?
A limited liability company is a business structure that provides a liability protection with the flexible tax structure. In LLC, Owners are called members while a person managing the business is called manager.
To open an LLC in California, you need to follow the following steps:
How to choose came for your California LLC?
Under the laws of California, an LLC should end with the following words;
- Limited Liability Company
- LLC
- L.L.C.
- “Ltd” or “Co” can be used as for the abbreviations of “Limited” or “Company”
An LLC in California must not contain the following words in the state of California:
- Insurance company
- Corp
- Insurer
- Corporation
- Inc
- Trustee
- Bank
- Trust
- Incorporated
- Your chosen name must not be similar with the existed name
-
It should be appropriate for audience
How to check California LLC name Availability?
You can check the database of California Secretary of State to find the availability of your name.
How to reserve your California LLC name?
An available LLC name can be reserved for 60 days by filing a name reservation form with the California Secretary of State.
What is the state filing fee to start an LLC in CA?
Filing fee for LLC is $70 under the California Government Code section 12190
Professional Services
Your LLC cannot offer professional services under section 17701.04. Professional services are those services where you need a certification, registration, or a license. Better to contact the relevant license authority to confirm either you can carry professional services or not.
File the articles of Organization with the state of California
You must set up your LLC by filing the articles of Organization with the California Secretary of State office. Complete the Form LLC1 by providing following information:
- Write the name of your LLC
- Provide the street address of the primary LLC office in California ( do not write P.O. Box)
- Write the complete mailing address including city, zip, and state code
- The name and address of the registered agent ( An agent is responsible for your legal documents handling)
- Write if your LLC is a “manager managed” or a “member managed”
- Place a one member at last for your LLC, if not then all members will be considered managers
- LLC form1 must be signed by the organizer, indicating that all given information is true
- Attach an additional signature attachment with LLC form1 if there is an additional organizer to sign.
- The attachment should be of standard letter size piece- (8 1/2" x 11")
The Mail Submission Cover Sheet- you will write following information here:
- Write the name of the person who will be contacted for questions query
- Provide the information of the entity
- Return Address of the entity
- LLC name
- Business Address
- Write the name of your registered agent
-
Write if your LLC has one or more managers, or all are members
The processing time of articles of organization in the state of California
It takes 5-7 business day to process your articles of Organization.
File a Statement of Information with the State of California
Every LLC either he is from California or foreign located, must file a statement of information that is From LLC-12 within 90 days right after you have filed articles of organization (form LLC-1) to open an LLC. You must file statement of information every after two years
The CA statement of information must carry the following information:
- Provide the name of your LLC with file number of the secretary of the state
- Write the name and address of the LLC’s registered agent
- Mention the street address of the LLC primary executive office
- Write the LLC mailing address if it is different from the principal or street address
- Complete residence or business address of any chief executive or manager
- Write the valid email address
-
Write the nature of the LLC Business
BOE State Tax Obligation
All LLCs must pay taxes to the FTB (California Franchise Tax Board)
California Annual minimum tax to maintain:
All LLCs in California must pay $800 as an annual minimum franchise tax.
Additional taxes:
Additional taxes will be charged as per the income of CA LLC.
Filing procedures of from 568:
A form 568 will be filed as Limited liability company return of income after the closing of LLC’s taxable period/year.
How to get an EIN for a California LLC? (employer identification number)
Get an EIN from IRS if your LLC has more than one member. If it is being operated by one member and hires employees, in this case you need to get an EIN also.
Can a foreign LLC operate business in California?
Yes, a foreign LLC can run his business but he must be registered with the California Secretary of State.
