The Steps to Establishing an LLC in California

  • Post last modified:July 26, 2023

Insights from a Business Law attorney in Pasadena, CA

Setting up an LLC in California is a process that requires careful attention to detail. But don’t worry – with the proper guidance; you can navigate the steps smoothly and securely. Here’s a comprehensive guide on establishing an LLC in Pasadena, ensuring your business is built on a strong and compliant foundation.

Choosing a Name for Your LLC

To register your LLC in California, you must first select a name not already used by another LLC registered in the state. The name you choose should end with “Limited Liability Company” or an abbreviation such as “LLC” or “L.L.C.” as required by California law.

You can search on the California Secretary of State’s website to check your desired name’s availability. Remember, a unique and distinctive name is not just a legal requirement – it’s also an essential element of your business’s brand identity.

Appointing a Registered Agent

A registered agent is someone or a business that accepts legal documents on behalf of an LLC if your company gets sued. It is required that the appointed registered agent needs to be a California resident or a corporation authorized to conduct business in California.

Filing the Articles of Organization

The next step is to file the Articles of Organization (Form LLC-1) with the California Secretary of State. This document includes information such as the name of your LLC, its purpose, information about the registered agent, and whether it will be manager-managed or member-managed.

Creating an Operating Agreement

Although not mandatory in California, it is highly recommended to have an operating agreement. This internal document sets the rules for the ownership and operation of the LLC. It includes details about the members’ rights and responsibilities, their percentage interests in the business, and the distribution of profits and losses.

Complying with Tax and Regulatory Requirements

Depending on the nature of your business and where it’s located, you may need to register for state and local tax purposes. This could include applying for an Employer Identification Number (EIN) from the IRS, registering for California state taxes with the California Franchise Tax Board, and applying for any necessary business licenses and permits.

Filing the Statement of Information

After your LLC is registered, you must file a Statement of Information (Form LLC-12) with the California Secretary of State within 90 days of the LLC’s formation. This statement includes information such as the LLC’s address, the name and address of the registered agent, and the names of all LLC members or managers.

Navigating the LLC Formation Process With Ease

Setting up an LLC involves several crucial steps. Contact a California business lawyer to ensure you take the proper steps for your unique business needs. Contact us today at (833) 285-5201 to learn how we can guide you through establishing an LLC in California.