Contrary to what people have been led to believe, forming an LLC in California is pretty straightforward. That said though, it is still possible to fall foul of some little known rules and regulations regarding how Limited Liability Companies should be formed, registered and start operating in the state of California. The following is a generalized run down of the issues, points and potential pitfalls which a group of individuals setting out to form an LLC in California should bear in mind.
The Name of the LLC
Every LLC formed in California must bear a unique name. According to the rulebook, an LLC’s name must end with Limited Liability Company (abbreviated LLC or L.L.C.). It is also worth noting that no California LLC name can contain the words ‘bank’, ‘trustee’, ‘trust’, ‘corporation’, ‘corp.’, ‘incorporated’, ‘inc’, ‘insurance company’, ‘insurer’ or any other term or designation which might give the impression that the LLC is in the business of offering insurance services.
To make the process of identifying a unique name for your LLC, you are advised to pick three potentials alternatives and submit them for preclearance checks at the California Secretary of State’s office. We can help you in the process of choosing an appropriate name as well as expediting the checks so you can get your LLC up and running within the shortest time possible.
About Filing Articles of Organization
A company’s articles of organization is a document detailing the LCC’s name, the purpose why it was formed, how it will be managed, its physical address as well as the name of the LLC’s registered agent. In California, the process of filing an LLC’s articles of organization is completed by filling out Form LLC-1. The form can be completed online. A fee of $70 is applicable. We can deliver your document to the California Secretary of State or you can mail it in. If we deliver it to the counter, forming an LLC in California takes 1-7 days depending on how quickly you need it back. Expedited 24 Hour processing costs $350 (SOS Fees) or Standard Processing 3-7 days costs $15 (SOS Fees).
California LLCs and Professional Services
Under provisions of California law, you may not form an LLC with the purpose of providing professional services. In this context, the term “professional service” is taken to include any sort of service which cannot be offered to the general public without first applying for a state license.
If you are a group of professionals intending to go into business, your best alternative to forming an LLC is a limited liability partnership (LLP). Again, we can help you go about setting such a partnership with the least amount of inconvenience. Call us for more details and we will help you achieve your objectives. We can also help you identify if the sort of services you are intending to offer require you to obtain a license first.
While the process of forming an LLC in California is pretty straightforward, there are several potential pitfalls a group of enterprising individuals should always be aware of. With years of experience in the field, we are uniquely placed to help you register your LLC. Click here to have one of our representatives contact you or you can call us at 916-480-1225.
