Legal Bueno

    How to Start Your LLC in California

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $70
    • Turnaround time: 8 business days

    How do I start an LLC in California?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for California, visit https://bizfileonline.sos.ca.gov/search/business.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in California?

    Here's the rundown for California:

    • The filing fee is: $70
    • There are ongoing fees of $800 (every year) + $20 (every 2 years)
    • It usually takes 8 business days if you're filing online or 8 business days (plus mail time) if by mail.

    Why California is a great state for your LLC

    Starting a company in California presents numerous advantages that make it an attractive destination for entrepreneurs:

    • Business Incentives and Tax Credits: California offers a variety of incentives like the New Employment Credit, which provides tax credits to businesses that hire qualified full-time employees in designated areas. This can significantly reduce operating costs for new companies.
    • Ease of Formation: Establishing a limited liability company (LLC) in California is often the simplest and fastest route for new business owners. An LLC combines the benefits of personal asset protection with the operational flexibility of a partnership.
    • Asset Protection: An LLC safeguards personal assets from business liabilities, ensuring that your financial security is not jeopardized by business-related debts.
    • Tax Benefits: LLCs benefit from straightforward tax filing processes and may enjoy favorable tax treatment, enhancing financial efficiency.
    • Minimal Administrative Burden: The filing, management, and compliance processes for an LLC are relatively uncomplicated, allowing entrepreneurs to focus more on growing their business rather than navigating extensive bureaucratic requirements.
    • Budget-Friendly Formation Costs: The cost to file an LLC in California is quite low, with a total filing fee of $75. This affordability makes it accessible for startups and small businesses.
    • Alternative Corporate Structures: For those whose businesses may not be suitable for an LLC, California also allows for corporation formation, providing flexibility in choosing the right entity for your business model.

    Overall, California’s supportive business environment, coupled with its diverse economic landscape, enhances the prospects for success for startups and new companies.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for California:

    Articles of Organization

    The articles of organization must include:
    1. A statement that the purpose of the LLC is to engage in any lawful act or activity;

    1. The name of the LLC;
    2. The street address of the initial designated office and the mailing address of the LLC if different from the street address of the initial designated office.
    3. The name and street address of the initial agent for service of process. If a corporate agent is designated, only the name of the agent is necessary.
    4. If the LLC is to be manager-managed, a statement to that effect.
    5. If the LLC is to be managed by only one manager, a statement to that effect.

    Cal. Corp. Code § 17702.01

    Filing fee: $70

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what California laws require for filing:

    A record authorized or required to be delivered to the secretary of state for filing must be captioned to describe the record's purpose, be in a medium permitted by the secretary of state, and be delivered. If the filing fees have been paid, unless the secretary of state determines that a record does not comply with applicable laws, the secretary of state must file the record.

    Upon request and payment of the requisite fee, the secretary of state must send to the requester a certified copy of a requested record.

    Cal. Corp. Code § 17702.05

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in California:

    Operating Agreement

    Cal. Corp. Code § 17701.10

    Binding effect and enforcement of operating agreement

    Cal. Corp. Code § 17701.11

    Statement of Information

    Cal. Corp. Code § 17702.09