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What are the steps I need to take to form a Limited Liability Company (LLC) in California?

Picture of Chris Battis By   ·  1 minute read

To form a Limited Liability Company (LLC) in California, you need to follow these steps:

  1. Choose a name for your LLC - The name must be unique and not already registered with the California Secretary of State. You can check the availability of a name by visiting the California Secretary of State's website.
  2. File Articles of Organization - In California, you need to file Articles of Organization with the Secretary of State's office to form an LLC. This form requires information such as the LLC name, the name and address of a registered agent, the names and addresses of the LLC's managers or members, and the purpose of the LLC.
  3. Obtain an Employer Identification Number (EIN) - An EIN is necessary for tax purposes, and you can obtain it from the Internal Revenue Service. You can apply for an EIN online at the IRS website.
  4. Draft an Operating Agreement - Although not required by California law, an Operating Agreement is highly recommended for LLCs. This agreement spells out how your LLC will be run, the roles and responsibilities of the owners and managers, and the procedures for adding new owners or withdrawing current owners from the LLC.
  5. File Statement of Information - Within 90 days after filing Articles of Organization, a Statement of Information must be filed with the Secretary of State's office. This form includes information about the LLC's managers or members, its principal place of business, and its registered agent.
  6. Obtain Licenses and Permits - Depending on the type of business, you may need to obtain additional licenses or permits to operate your LLC in California. You can check the requirements for your business at the CalGold Business Permits website.

Possible limitations or exceptions to this advice include specific regulations and requirements for certain types of businesses, such as those in the healthcare or legal fields. It is always important to seek the guidance of an experienced attorney to ensure that all legal requirements are met and all necessary documents are filed correctly.

Further action may be necessary if there are any issues with name availability or other legal concerns, such as trademark infringement or liability considerations. An attorney can help you navigate any potential pitfalls and ensure that your LLC is formed properly and legally.