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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 will need to follow the steps outlined below:

  1. Choose a Name for your LLC: The first step in forming an LLC in California is to choose a unique name for your LLC. The name should not already be in use by another business in the state of California. You can conduct a quick name search on the California Secretary of State’s website to check if the name you have in mind is already in use.
  2. Appoint a Registered Agent: You will need to appoint a registered agent, who will be responsible for receiving legal documents and notices on behalf of your LLC. The registered agent can be an individual who is a resident of California or a registered business entity in the state.
  3. File Articles of Organization: You will need to file Articles of Organization with the California Secretary of State to officially form your LLC. This document includes basic information about your LLC, such as its name, registered agent, business address, and the name and address of its members.
  4. Publish a Notice of Formation: Within 90 days of filing your Articles of Organization, you will need to publish a Notice of Formation in a newspaper of general circulation in the county where your LLC has its principal place of business. You will then need to file a Proof of Publication with the California Secretary of State.
  5. Obtain Any Required Licenses and Permits: Depending on the nature of your business, you may need to obtain licenses and permits from various state and local agencies. You can check the California Business Portal to determine which permits and licenses apply to your business.
  6. Create an Operating Agreement: While not required by law, it is highly recommended that you create an operating agreement. This document outlines the ownership structure of your LLC, how profits and losses will be distributed, and other important financial and operational details.
  7. Obtain an EIN: Finally, you will need to obtain an Employer Identification Number (EIN) from the IRS. This number is used to identify your LLC for tax purposes.

Note that LLC formation requirements and fees can vary by state and some states require additional steps than those listed above. It is always best to consult a licensed attorney for guidance when considering forming an LLC.