ESTABLISH AN LLC IN CALIFORNIA NOW!
Knowing the steps involved and being prepared with the relevant information makes the process much easier. This page will walk you through every step of forming your new business entity in California.
Step 1:
Select a Name for Your LLC
The first step when forming an LLC in California is to select a name for your business. You must choose a name that is distinguishable from other businesses registered with the Secretary of State’s office and complies with the state’s naming conventions. The name you choose should not include words like “Incorporated,” “Corporation,” or any other word suggesting that it is anything other than a limited liability company. Additionally, you may not use words that are restricted by state law such as “Bank” or “Insurance.”
Step 2:
Prepare and File Articles of Organization
Once you have chosen a name for your LLC, you must prepare and file Articles of Organization with the Secretary of State’s office. The Articles of Organization must include basic information about your business such as its principal address, purpose, duration (if applicable), members/managers/owners, registered agent information, and more. It is important to note that filing fees will vary depending on how quickly you want your articles processed by the Secretary of State’s office. Once your Articles of Organization are approved by the Secretary of State’s office, you will receive an official Certificate of Formation confirming the formation of your LLC in California.
Step 3:
Obtain Any Necessary Licenses and Permits
Before operating your LLC in California, make sure that you obtain any necessary licenses or permits required for doing business in the state. Depending on what kind of business you are running and where it is located, this could require obtaining local permits or registering with various government agencies such as the Department of Revenue Services or Internal Revenue Service (IRS). Make sure to research all local requirements before starting operations to avoid fines or penalties later on down the line.
Step 4:
Create an Operating Agreement
Creating an Operating Agreement is optional but highly recommended when setting up an LLC in California—especially if there are multiple members involved in ownership/management decisions. An Operating Agreement spells out how authority will be shared among members/managers/owners as well as procedures for decision-making processes and dispute resolution mechanisms between members if necessary. Additionally, having an Operating Agreement helps protect each member from personal liability if something goes wrong with the business down the line – so don’t skip this step!