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If you are not completely sure that you want to form a California LLC check out our detailed
LLC Information page.
After reading our LLC Information page,
if you are still not completely sure that you want to form a California LLC you should consult a
competent California lawyer, accountant or both.
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Once you have made the decision to form an LLC in California online, PCF makes the process
of forming a California LLC fast and easy.
California LLC options and pricing are included below.
There are no hidden costs.
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The state of California usually takes 15-20 business days to process your application to form a California LLC.
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What do I have to do to form a California Limited Liability Company (LLC)
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1. Choose a name for your California LLC
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Your California LLC name must contain, as the last words of the name, "Limited Liability Company" or the abbreviation
"L.L.C." or "LLC".
The word "Limited" may be abbreviated as "Ltd." and the word "Company" may be abbreviated as "Co."
Your California LLC name must be distinguishable from any other registered California LLC or other business
entity and any reserved names on record with the state of California.
Your California LLC name must not imply that it was formed for a purpose other than that stated in your Articles of Organization.
- PCF will check to make sure that your California LLC name is available, conforms to state of California LLC naming regulations,
and will reserve the LLC name with the California Secretary of State.
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2. Select an official address and a Registered Agent for your California LLC
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Every California LLC must have an address that is physically located in the state of California.
This address is "registered" with the California Secretary of State.
The Registered Address is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of California to receive all correspondence on behalf of the California
LLC is called a "Registered Agent".
You may act as your own Registered Agent, however, many California LLCs hire a Registered Agent because they don't have a physical
address within Alabama or to provide a distinct level of privacy.
- PCF can act as the official Registered Agent for your California LLC.
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3. Determine who will be Members and who will Manage your California LLC
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The owners of a California LLC are called Members - not partners or shareholders.
(California LLCs do not issue stock).
Members make all business decisions and realize the financial benefits generated by the California LLC.
Division of ownership and distribution of profits are decided by private agreement among the members.
Each California LLC must have at least one member.
Members need not live in the state of California or be citizens of the United States.
Managers are responsible for the day to day operation of the California LLC.
Members elect or appoint Managers and have the power to remove them.
Managers may or may not be Members of the California LLC.
Management for your California LLC may be defined in your Articles of Organization or, more commonly, in an Operating Agreement.
- PCF will include Guidelines for Managers in your California LLC documents.
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4. Determine how you want to be taxed
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The IRS does not recognize an LLC as a classification for federal tax purposes.
California LLC members can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation.
This decision may be made after the California LLC is created.
If a single member California LLC does not declare a tax classification it is taxed the same as a sole
proprietorship.
A multiple member California LLC that does not declare a tax classification is taxed as a general partnership.
More specific federal LLC tax information can be found at the
IRS web site.
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| The California Corporate Income Tax Rate is 8.84%. For California Corporate Tax Information click here. |
- If you choose to be taxed as an S Corporation, PCF can prepare the S Corporation election form for your California LLC and include it with
your LLC documents.
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5. File Articles of Organization with the California Secretary of State
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A California Limited Liability Company is a type of business that is authorized by the state of California - not by the federal government.
In order to form an LLC in California you must file Articles of Organization with the California Secretary of State.
- PCF can draft Articles of Organization that are specific to your California business and file them with the California Secretary of State.
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6. Get a Federal Employer Identification Number (FEIN)
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A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a
business entity.
An FEIN is like a Social Security Number for your California business.
All California LLCs operating as corporations are required to have an FEIN.
If you plan to form a single-member California LLC you will not need a separate FEIN for the LLC if you have no employees.
The sole member of a single member California LLC can use his or her Social Security Number instead of applying for an FEIN.
- PCF can prepare and file the forms to obtain an FEIN for your California LLC.
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7. Open a Business Bank Account in California
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It's very important that you have a separate business bank account for your California LLC.
Mixing personal and business funds may get you in a lot of trouble with the tax man down the line.
PCF can create a business bank account for your California LLC.
You will receive free checks, an opening deposit of $100, and no monthly fees for a whole year.
Your bank account will be ready the day your California LLC opens for business.
If you decide to open a business bank account on your own, it's a good idea to contact the bank before you open an account.
Specific requirements vary from bank to bank.
In most cases you will need a FEIN, a copy of your California LLC Articles of Organization, and a resolution identifying authorized signers
if those names are not listed in the Articles.
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8. Obtain Business Licenses from the cities and counties in which you plan to do business
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The business licenses or permits that are required for your California LLC vary depending on your specific business activities and the California
locations in which you want to conduct business.
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PCF will prepare the necessary forms for your city business license and include them in your California LLC package.
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9. Conduct an Organizational Meeting and adopt an Operating Agreement
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An Operating Agreement defines the rules by which your California LLC will operate.
It is the core document that is referred to when issues concerning your LLC need to be resolved.
Operating Agreements may include requirements for almost anything that involves the management and operation of your California LLC.
By having an Operating Agreement all Members will be provided with a clear set of rules they have agreed upon thus reducing the likelihood of
disagreement in the future.
Although an Operating Agreement is not required in the state of California, if you plan to form a multiple member California LLC
it is highly advisable to have one.
Having an Operating Agreement may save you a lot of time and money should conflict arise down the line.
As your California LLC grows over time, you may amend your Operating Agreement as necessary.
If your California LLC has an Operating Agreement your business will governed by your own rules and not default rules created by
the state of California.
- PCF can draft an initial Operating Agreement based on your specific California business requirements.
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If you have any questions call us toll free at 1-877-438-4626 or email us at corpServices@GetIncNow.com.
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