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Forming an LLC in California
Forming an LLC in California is not very difficult and it is possible to do it without hiring an incorporation company or attorney. It is however a good idea to let an attorney take a look at your Operating Agreement, because an improperly written Operating Agreement can lead to IRS problems farther down the road.
Forming an LLC in Alabama in 5 easy steps
- Start by picking a suitable name for your Limited Liability Company. The name must for course be unique (i.e. not used by any other registered LLC) and cannot violate trademarks. According to California State law, the company name must also include an LLC identifier: either “Limited Liability Company” or an accepted abbreviation, such as “LLC”, “Ltd Liability Co” or “Limited Company”. When forming an LLC in California, you cannot use the terms “trust”, “trustee”, “bank”, “insurance company”, or “insurer”, or any other terms that implies that your LLC issues insurance policies and assume insurance risks.
- The next step is to file your Articles of Organization at the California State filing office.
- Step three involves having an organizational meeting and adopting an Operating Agreement for your LLC.
- During step four, you acquire a Federal Employer Identification Number (FEIN) for your LLC and set up a company bank account.
- During the final step, your LLC applies for local business licenses. Keep in mind that you will need a local business license for each city or country that you plan to do business in.
Important facts to take into consideration before forming an LLC in California
- When forming an LLC in California, the minimum state filing fee is $70.00. (For 40 business days.)
- In California, the annual reports are called “Statement of Information” and they must be handed in every second year. The report fee is $25.
- Newly formed LLC’s must pay an $800 Franchise Tax, and then continue to pay $800/year thereafter.
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