Starting an LLC in California is a great way to protect your personal assets and give your business a professional edge. Here’s a step-by-step guide to get you started:
Step 1: Choose a Name
Your LLC’s name must be unique and comply with California’s naming requirements. You can check the availability of your desired name on the California Secretary of State’s website.
Step 2: File Articles of Organization
File the Articles of Organization with the California Secretary of State. You can do this online or by mail. You will need to pay a filing fee.
Step 3: Create an Operating Agreement
While not required by California law, it’s a good idea to create an operating agreement that outlines the ownership and operating procedures of your LLC.
Step 4: Obtain an EIN
An Employer Identification Number (EIN) is required for tax purposes. You can obtain an EIN for free from the IRS.
Step 5: File Statement of Information
Within 90 days of filing your Articles of Organization, you must file a Statement of Information with the California Secretary of State.
Step 6: Comply with Local Regulations
Depending on the location and nature of your business, you may need to obtain local business licenses or permits.
Step 7: Annual Compliance
LLCs in California are required to file an Annual Statement of Information and pay an $800 annual franchise tax.
Starting an LLC in California involves various legal and administrative steps. It’s advisable to seek professional assistance to ensure everything is done correctly. Good luck!