Start an LLC in California
LLC Registration in California
The Legal Registration LLC California division is here to help you start anLLC in California Today. Please use this web page to order a standard LLC registration. Or, can pick up the phone and call us to form your new limited liability company. You’re also welcome to call us if you have questions about LLCs. We look forward to setting up your business entity in California ASAP.
An LLC Overview
So, why is forming an LLC (limited liability company) so important? Because it combines corporate and partnership legal structures. Some people in California form an LLC to run a new business. Meanwhile, others in the state create an LLC to hold assets. Either way, each owner of an LLC functions as a member. A key purpose of an LLC is to protect a member against many personal liability issues.
Oftentimes, an LLC operates as a disregarded entity
This takes place for federal reasons if the LLC only has one member. Each limited liability company can also function as an SMLLC. It stands for single member limited liability company. Now, let’s say that your LLC has more than one owner. It can operate as a partnership. But keep in mind that more than one type of partnership exists. You can form a limited liability partnership. Or, an LLLP: limited limited liability partnership.
Our organization is standing by to help you form any type of legal business entity
From a standard LLC to a series limited liability company. When doing so, we can teach you how an LLC can get taxed as a corporation. In fact, your LLC will need the same classification of federal and state tax status.
Keep in mind that we can do more than open your LLC today
Our experts can do it all. From helping you learn how to pay a filing tax to taking care of all key filing actions. We can even help you keep your LLC active. This way, you can avoid operating a suspended LLC or paying an SOS penalty. If you ever decide to cancel your LLC, we can also assist with full-scale dissolution. Once again, please contact us now if you have any questions about LLCs.
Start Your LLC in California Today
Are you ready to organize or register an LLC in the great state of California? If so, the team is standing by. We’re ready to contact the SOS (Secretary of State) on your behalf. This way, we can ensure that your business files all the right documents. Sure, the California Secretary of State often supplies confusing paperwork. But you can leave that to our document filing support team. We won’t rest until the SOS approves your new business and LLC.
The California Annual Tax
There is an annual tax in California that applies to every type of LLC. Each business in the state has to pay for the annual tax of $800. Your LLC must pay this tax even if you decide not to conduct business. In that case, you have to cancel your LLC with the state. Otherwise, you’ll have to still pay the annual CA tax. So, when must you pay an annual LLC tax to the SOS? It takes place up to the 15th day of the 4th month from your SOS filing date. That is when you must pay the annual tax for the first year that your LLC operates.
Here is an example of when a business has to pay the California annual tax. Say that you decide to form an LLC. Then, you register with the California Secretary on June 18. The annual tax gets due on September 15. Why? Because that’s the 15th day of the 4th month. Then, future annual tax payments will still become due on that day. Say that you’re making the California annual tax payment for your LLC. When applying for the payment, fill out the LLC Tax Voucher (FTB 3522). Or, our filing experts can take care of the payment on your behalf. The payment goes to the Franchise Tax Board in Sacramento.
Are There Any Exceptions to the Annual Tax in the First Year?
Yes, there is one exception to the California annual tax on LLCs. An LLC does not become subject to the tax/fee if both of the following conditions are at play. First, your LLC did not conduct business in the state during the entire tax year. Want to know Do I Need a Lawyer To Start an LLC? Second, the tax year cannot exceed fifteen days. Please contact our organization if you have more questions about exceptions.
What Is the Short Form Cancellation in California?
Say that you decide to cancel an LLC in less than a year of organizing the entity. That is when you can file a short form cancellation with the CA State Secretary. When doing so, you must fill out and file SOS Form LLC-4/8. As a result, your LLC won’t become subject to an $800 annual tax in its first tax year.
LLC Fees ($250,000+)
Let’s say that your California LLC makes more than $250,000 in one tax year. This means you must pay the state tax fee. The fee becomes due by the 15th day of the 6th month. This time frame relates to each current tax year. The exact amount of this fee will vary. You can contact us to receive an estimated LLC fee over the phone. Then, our experts can help you file the estimated fee payment with the state.
Underpayment of LLC Fees
Now, say that you miss the original return date of an LLC fee. This means that your business failed to make an estimated CA LLC fee payment. Your company will become subject to interest and penalties. Want to know How To Start Your Own Business ? That is why it’s so important for you to pay state LLC fees on time. Please contact us if you need more information about LLC fee due states. Our goal is to help prevent you from receiving state penalties.
Filing Rules & Regulations in California
The state of California features many rules and regulations about filing LLC paperwork. Let’s say that your LLC meets at least one of the following conditions. Condition one: your LLC conducts business in California. Condition two: your LLC has active registration with the state SOS.
So, does your business meet one or both of the conditions above? If so, your LLC has to pay an $800 annual tax. It’s due on the 15th day of the 4th month. This time frame relates to the start of each current tax year. Your liability company must then fill out the CA FTB 3522 form. It’s the official state Limited Liability Company Tax Voucher. Our organization can help you estimate and pay your exact LLC fee. Your business must also file a Limited Liability Company Return of Income (Form 568).
Let’s say your LLC wants to file an extension. This takes place through the Payment for Automatic Extension for LLCs form. The official form name is FTB 3537. Your company can refer to the Limited Liability Company Tax Booklet. The booklet features more information on liability company taxes in California. Will you have income or loss within or outside of California? If so, use the Apportionment and Allocation of Income (Schedule R) form. The form will help you figure out your exact California source income. Please contact us now if you have questions about CA LLC due dates.
Foreign Non-Registered LLC Filing
Do you operate your business as a foreign non-registered LLC? If so, this means that you treat your entity as a partnership. Plus, you have a California source of income but do not conduct business in the state. As a result, your LLC has to file a Partnership Return of Income (Form 565). Our organization can take care of this foreign LLC filing on your behalf. Plus, we can supply a California Partnership Tax Booklet for new information.
How Do I Keep My LLC Active?
Here is how to keep your LLC active within the state of California. First, your LLC has to file a Statement of Information through the SOS. Then, your LLC can file and pay all relevant state income taxes. Without actions like these you LLC could get suspended. California never grants automatic extensions for suspended LLC filings. Please contact our organization for help if your business gets suspended.
The California SOS (Secretary of State) Penalty
Did you know that the California SOS can apply a $250 penalty on your business. This will happen if your LLC does not file the Statement of Information. If that happens, expect the state to collect the penalty for the Secretary of State. Let us know at any time if you need help filing the Statement of Information form.
You Can Always Cancel Your LLC
Keep in mind that you can always cancel your LLC in the state of California. This applies to any limited liability company registered with the SOS. Now, say that you close down your business today. Know How Long Does It Take To Get an LLC? You have to file specific paperwork with the CA Secretary of State. That includes filing the final current year tax return. Make sure that you check off the Final Return box in the filing. You can find that box within the first page of your tax return. This way, you’ll stop conducting business in California once the tax year concludes.
Here is how to cancel your California LLC if you do not have official SOS registration. First final a current year tax return. Then, check off the Final Return box. That box is on the first page of your tax return. This is also how you can stop doing business within California after the final tax year. Have you seen the Guide to Dissolve, Surrender, or Cancel a California Business Entity? If not, you can find it within FTB Publication 1038 on the State Secretary website.
Our LLC California Division Is Here for All Your Filing Needs
The LLC California division of our organization cannot wait to assist you. Ave helped California LLC after LLC form and maintain their companies. We’re standing by to instruct you how to get an LLC in California today. Our experts know that how to start anLLC in California can seem overwhelming. That’s why we provide world-class LLC registration tools and resources. This way, we’ll make starting an LLC in California a piece of cake. Once you have an LLC in California, we can help you maintain state/federal filings. So, are you ready to get started? You can go ahead and open an LLC in California right here on this web page.
Start Your CA Limited Liability Company: 8 Steps
A key mission of our organization is to make starting an LLC in California easy. That’s why we’ve listed the following eight registration steps. Keep in mind that our team can assist you with each step. This way, you can form your limited liability company without any delays. So, sit back and relax. You can rest easy knowing that Legal Registration is there for you during each step.
California LLC Registration Step 1: Name the LLC
Your first LLC registration step is to give the LLC a unique name. The name can’t already exist within any California Secretary of State records. In fact, the name can’t even sun too much like an existing LLC name. Not to mention, your LLC name cannot mislead the public.
Our team can help you search through the CA Secretary of State business name database. Say that the name you envision for your LLC is not held in the database. The state will give you 60 days to hold onto a reserved name. We can help you fill out the Name Reservation Request form. The form cannot get sent online through the CA SOS website. Instead, we must mail the form or hand deliver it in person at the SOS office.
There are some California state rules and regulations to keep in mind about LLC names. Your LLC name has to end with L.L.C. or LLC. Or, the name can end with: Limited Liability Company. Feel free to abbreviate either Limited or Company as Ltd. or Co. There are many words that the state will not let you insert into your LLC name. These include: trustee, bank, incorporated, trust, corp., and corporation. Please contact us for a complete list of banned words for California LLCs. The CA State Secretary can also provide a document featuring banned names.
California LLC Registration Step 2: Complete an Articles of Organization Filing
The next step is to file the Articles of Organization for your new company. Each articles filing has to go through the California Secretary of State. This is the most important step in the LLC registration process. You cannot form a California LLC without filing your Articles of Organization. The filing takes place once you send off Form LLC-1.
Form LLC-1 goes to the California State Secretary office in Sacramento. Your articles will begin once you state the name of your LLC and what purpose it has. Then, feature information how the LLC will get managed. The filing also has to include the address of the LLC. Plus, make sure to also mention the address and name of the LLC registered agent.
California LLC Registration Step 3: Hire Your Registered Agent
Did you know that each LLC in California needs to have an agent for service of process? The agent for service of prices refers to a “registered agent” within other states. The agent operates as either a person or company. A registered agent will accept every legal paper for an LLC if the LLC gets sued. No LLC can serve as its own registered agent or agent for service of process. Your agent has to agree to accept all service or process documents for the LLC. This way, you can protect your liability if your company experiences a lawsuit.
An individual registered agent has to live within California. The agent must use a street address and not a P.O. box. Plus, the name of your agent goes inside the LLC articles of organization. An LLC agent can function as the officer, manager, or member of an LLC. But the agent does not have to hold an official affiliation with the business. The California State Secretary holds a list of private service companies. This means that the state has every commercial registered agent on file. These are agents that will serve as the agent for service of process through a fee.
California LLC Registration Step 4: Choose Member or Manager LLC Management
The majority of small multi-member LLCs have their management take place through members. But any LLC in California can have a manager manage its company. In fact, even a small group of managers can manage any LLC in the state. Think of the management process like the board of directors overseeing a corporation. Managers will vote on every key issue at your LLC. Here are some examples of limited liability issues at a business. Should our LLC take out a loan? Does our company need to buy real estate? What would happen if our business changes some of its strategic plans?
California LLC Registration Step 5: Form an Operating Agreement
You might wonder why this is a step in our LLC registration guide. After all, the Secretary of State in California does enforce agreement formations. Well, all legal experts in the United States hold their own agreement. It’s that LLCs benefit by having operating agreements. Having an agreement can protect the liability of your business. The LegalRegistration.com team’s standing by to draft an agreement for your company. Please contact us now and we can for your LLC operating agreement with ease.
California LLC Registration Step 6: Complete the Biennial Report
Each LLC in California has to file the Statement of Information, Form LLC-12. This filing policy applies to any domestic or foreign LLC. The filing must go through the California Secretary of State. It has to happen within ninety days of filing the articles of organization.
Next, your business has to file an updated Statement of Information every two years. This refers to a “biennial filing.” Let us know if you need information about the filing period for the statement. Any LLC can file the statement online. Or, a business can print the filing and mail it to the CA Secretary of State. The state will charge a small filing fee.
Let’s now assess the content that goes inside each Statement of Information. First, you will have to feature the name of your LLC. Next to the name, include your California State Secretary file number. You will also need the address and name of your LLC agent for service of process. Also, feature the LLC principal executive office street address.
Say that your LLC mailing address is not the same as the principal office address. Make sure you include the official mailing address. Next, list the house/business addresses of all managers and members. Include their names. This information also applies to the LLC chief executive officer. Also, include a valid email address. This way, the Secretary of State can reach you by electronic mail.
California LLC Registration Step 7: Pay Certain California State Tax Fees
Every foreign and domestic LLC has to pay certain California state taxes. The tax payments go toward the California Franchise Tax Board (FTB). The tax fees apply to almost all LLCs organized or registered within California. Even an LLC that only conducts business in the state has to pay certain fees. Any company that does not elect to get taxed as a corporation has to pay fees. For example, this applies to a company taxed as a sole proprietorship. Or, a business that gets taxed as a partnership. Say that your company gets taxed as a corporation. It has to adhere to all California corporate tax rules.
Keep in mind that there is an annual minimum tax in California. Each LLC doing business in the state pays for an annual minimum franchise tax of $800. A company provides the annual tax toward the CA Franchise Tax Board. It takes place through a filing of Form 3522, Limited Liability Company Tax Voucher. Say that your LLC in California has a net income above $250,000. It has to pay an extra fee to the state. That fee gets based on the total annual income of the business
California LLC Registration Step 8: Adhere to All Other Tax Regulations
It is crucial for your LLC to adhere to all other state and federal tax regulation rules. This includes the official IRS EIN policy. Does your IRS have more than a single member? If so, it’s time to get the IRS Employer Identification Number (EIN). You must secure the EIN even if your business does not have any active employees.
Now, let’s say that you formed a one-member LLC. You still have to register an EIN if the business will have any employees. Or, if you divide to have the LLC get taxed like a corporation. (Instead of the standard sole proprietorship tax.) You can use our website to register a new EIN number. Our experts are standing by to fill out your application with the IRS. This application refers to filing IRS Form SS-4.
Remember that your LLC will need a series of business licenses.
The exact license depends on what your LLC engages in. Plus, the location of your company also matters. There are many different state and local business licenses that you could need. To find out more information, please contact Legal Registration. We can work one-on-one with CalGold to figure out your exact registration needs. Our team can also contact the California Office of Business and Economic Development.
Your California business will also have to file employer and/or sales taxes.
Here is an example of how this state tax filing process works. Say that your LLC sells goods. As a result, it collects sales tax. As a result, you should get registered with one of the California taxing authorities. Since your business collects sales tax, it must register with the BOE. This refers to the California State Board of Equalization (BOE). A BOE filing can take place online or at a BOE field office.
An LLC must file with a different agency when it comes to employer taxes.
This is where your LLC should register with the EDD. The EDD is the California Employment Development Department (EDD). Do you need more information about state tax registration in California? If so, our team can provide a list of annual filing rules and regulations. This way, you will know how to take care of all business state taxes in California.
Form an LLC Today | LLC Registration in California
Do not put off forming a new LLC. Having a limited liability business will help you jumpstart your company. Plus, you can still create an LLC even if you’re already operating as a sole proprietor. LLCs have a first-rate reputation for limiting the personal liability of any owner. This concept applies to business debts and lawsuits alike. After all, don’t you want flexibility within all aspects of your company? From LLC management to ownership to taxation. Please call us now if you have questions about how to form any business structure. We’re standing by to tell you all about operating a limited liability co.
Contact Us for Help Finding an LLC Name
Are you struggling to figure out if you can use a potential LLC name? If so, please contact Legal Registration. Our experts can work one-on-one with the California State Secretary. This way, you’ll know if existing businesses in the state have already filed your name. We’re also standing by to help you with a name search using the California SOS website. Our team won’t rest until you secure an LLC name that you love.
Should I Establish an Operating Agreement in California?
Yes. Our legal experts recommend that each California LLC should hold an operating agreement. That is the case even though the state does not enforce operating agreements. You see, an operating agreement can help protect the status of limited liability. Plus, agreements prevent all sorts of management and financial problems. An agreement can ensure you divide how to govern your business. Visit & know How To Start Your Own Roofing Business? This way, the state of California cannot make big-time management decisions.
Can I Create a Professional LLC Within California?
No. California state law does not allow the formation of professionals LLCs. This means you cannot create an LLC that provides professional services. So, what is a professional service? It involves any sort of service where you need a professional, state license.
Are you unsure if your business service cannot operate without a state license? If so, try browsing the California Department of Consumer Affairs website. Or, you can contact our organization for help. Keep in mind that you can form an LLP: limited liability partnership. An LLP serves as a common alternative to an LLC in the state.
Can Foreign LLCs Conduct Business Inside California?
Yes. But here’s the catch. Say that you own an LLC registered outside of California. It has to get registered with the California Secretary of State. Otherwise, the company cannot operate its business in California. State registration must take place for every foreign LLC. The first step is to file state Form LLC-5. This form is the Application to Register a Foreign Limited Liability Company. The state will charge a fee to file this form. Also, the form has to get filed through postal mail. (Unless you drop off the form on an in-person basis in Sacramento.)
Every LLC in the state has to appoint an agent for service of process. That agent then plays the exact same role as a Then, each LLC has to provide the certificate of good standing. A company can access the certificate from the agency that formed the LLC. Please let us know if you have any other questions about business entities. Our experts can address all questions related to the California State Secretary.
Can I Create a California Single-Member LLC?
Yes. In almost all cases, anyone can form a single-member LLC in California. In fact, a multi-member LLC functions in the same manner as a single-member LLC. That’s why you can use the same LLC formation steps on this web page. Those steps apply to creating a California single-member LLC. Having a single-member LLC in the state carries some benefits. For example, single-member LLCs have some flexibility when filing tax returns. Let us know if you have questions about single-member LLCs paying federal taxes.
Can I Dissolve an LLC Once I’m Done?
That is correct. In fact, our organization provides full-scale LLD dissolution services. Let’s say you get to a point where you want to stop all your business operations. That means it’s time to close your LLC for good. When doing so, you must dissolve the LLC. This can reduce a great deal of liability. Visit & check the LLC Registration Form. That liability reduction applies to both lawsuits and fees from the government. Please reach out to us if you have questions about LLC dissolution.
CALIFORNIA LLC VS S CORP
Legal Registration is standing by to operate as your official registered agent. This process refers to appointing a California Agent for Service of Process. This way, your LLC in California can stay in compliance with state laws. An agent for service of process can refer to any registered agent. The service of process agent can function as either a business entity or person. An entity will receive crucial tax forms, government documents, and notices. All notices will inform you if there’s a lawsuit against your company. Our agents are ready to serve as the point of contact between your LLC and the state.
Let Us Know If You Have Questions About Business Insurance
Feel free to contact our organization if you have questions about business insurance. Keep in mind that your LLC might have to set up three different types of insurance. First, it could need general liability insurance. This insurance policy can protect your company from lawsuits. That’s why almost all small businesses have general liability insurance. Roofing Company Startup Cost.
Your LLC might also need to secure professional liability insurance.
This business insurance is great for all sorts of professional service providers. From accountants to consultants. Want to know What services do we provide? The insurance will cover claims related to business errors and also malpractice. You might also want to consider having a workers’ compensation insurance policy. This insurance features coverage related to employee hon-related deaths. The coverage also involves employee injuries and deaths at a business.
Contact Us About LLCs Today
The LegalRegistration.com team cannot wait to help you form an LLC in California. Plus, we can also provide full-scale compliance filing services. This way, you can protect your business from dealing with state fines and fees. Please give us a call right now to get started. We’re prepared to help your California business or LLC reach new heights.