How To Get An LLC In California
How to Get an LLC in California
A limited liability company (LLC) is a business structure that offers the limited liability of a corporation with the flexibility of a partnership. This makes it an attractive option for many small business owners. However, not many know how to get an LLC in California in a way that will benefit their business activity.
This can be done yourself by visiting the California Secretary of State website by following the LINK and following the steps listed below. You can also get an LLC in California by contacting our Business Formation Specialists at Business🚀Rocket for assistance. The team at Business Rocket has the knowledge and experience to file the documents on your behalf so you get the most benefits from whatever business structure you select.
To open an LLC in California, you will need to follow these steps:
- Choose a name for your LLC.
- File your Articles of Organization with the California Secretary of State.
- Choose a registered agent.
- Create an operating agreement.
- Get an Employer Identification Number (EIN).
- File a biennial report.
- Pay your annual franchise tax.
Step 1: Choose a name for your LLC
Your LLC name must be unique and distinguishable from other business names in California. You can search the Secretary of State’s website to see if your desired name is available.
Step 2: File your Articles of Organization with the California Secretary of State
Your Articles of Organization is a document that officially creates your LLC. You can file your Articles of Organization online, by mail, or in person. The filing fee is $70.
Step 3: Choose a registered agent
A registered agent is a person or entity who will receive legal documents on behalf of your LLC. You must have a registered agent in California who is available to receive mail during regular business hours.
Step 4: Create an operating agreement
An operating agreement is a document that outlines the rules and procedures for your LLC. It is not required by law, but it is a good idea to have one. An operating agreement can help to avoid disputes between members and provide guidance in the event of a disagreement.
Step 5: Get an Employer Identification Number (EIN)
If your LLC has more than one member or will be paying wages to employees, you will need to get an EIN from the Internal Revenue Service (IRS). An EIN is a nine-digit number that is used to identify your business for tax purposes.
Step 6: File a biennial report
Every two years, you will need to file a biennial report with the California Secretary of State. The filing fee is $20.
Step 7: Pay your annual franchise tax
Every year, you will need to pay an annual franchise tax to the California Secretary of State. The franchise tax is $800 for the first $500,000 of your LLC’s net income, plus $1 for each additional $1,000 of net income.
Benefits of Forming an LLC in California
There are many benefits to forming an LLC in California, including:
- Limited liability protection: As an LLC owner, your personal assets are protected from business liabilities.
- Flexibility: LLCs offer a great deal of flexibility in terms of management and taxation.
- Simplicity: LLCs are relatively easy to form and maintain.
- Tax benefits: LLCs can be taxed as a pass-through entity, which means that the profits and losses of the business are passed through to the members’ personal tax returns.
Conclusion
Forming an LLC in California is a relatively simple process that can offer a number of benefits for small business owners. If you are considering starting a business, forming an LLC is a good option to consider.
Call to action
Now that you know how to open an LLC in California, we can help. We offer a variety of services to help you get your LLC up and running, including:
- Name search
- Articles of Organization filing
- Registered agent service
- Operating agreement drafting
- EIN acquisition
- Biennial report filing
- Franchise tax payment
Contact us today to learn more about how we can help you form your LLC in California.
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