Starting an LLC in California
If you are thinking of starting a LLC in California, there are a number of considerations that you will need to keep in mind. This type of company puts together the benefits of a partnership, sole proprietorship as well as a corporation in a single entity. This implies that you will have complete control, limited liability as well as tax benefits.
One of the first consideration when starting an LLC in California is coming up with a name. The name should meet the standards of limited liability company names as required by the state of California. It will need to be unique and must end with LLC, Limited Liability Company, Limited Liability Co., etc.
After coming up with a name for the company, the next thing to consider is submitting the LLC articles of organization to the California Secretary of State. This is also known as the LLC-1. These articles will include information about the company such as the registered agent, address, and the management style. Once the LLC-1 has been filed and approved, you can apply for your Employer Identification Number (EIN) with the IRS. Filing the LLC-1 and applying for your EIN are two of the most important steps to take when starting an LLC in California.
The next thing to consider is to set up the operating agreement. Even though this procedure is not mandatory by the state of California, it is very important to carry through with it. It is for the purposes of defining the responsibilities of every member that is a part of the company as well as their liabilities. The operating agreement will also help protect the members from being personally liable if you are faced with financial setbacks. Other important things that can be included in the operating agreement are the mission statement, the business nature as well as concept.
You will also need to acquire a business license and permit in order to be in a position to run the limited liability company without violating California state laws. The license and permit that you will be required to get will depend on the nature of your business and location.
Another important thing you will need to consider when starting an LLC in California is to submit filings of the Statement of Information to the Secretary of State every 2 years. This will update any information and changes that are made to the LLC. Please keep in mind that all LLCs are required to pay the minimum yearly tax of $800 to the California Franchise Tax Board.
If you are thinking of starting an LLC in California or have any questions, contact us today! Let one of our agents assist you with making this process a breeze! Call us at (916) 480-1225.
