- Choosing a Name for Your LLC: Before registering, ensure your LLC’s name is unique and adheres to California’s naming requirements. It must include “Limited Liability Company”, “LLC” or “L.L.C.”, and it can’t include prohibited words (like “bank,” “trust,” “insurer,” etc.). You can check for name availability through the California Secretary of State’s business search page. There isn’t a specified timeline for this process, but it should be completed before filing your Articles of Organization.
- Appoint a Registered Agent: This needs to be done prior to filing the Articles of Organization. Your registered agent must be a resident of California or a business entity authorized to do business in California. The agent should be available during regular business hours at a physical address within the state.
- File Articles of Organization: This is the formal document that officially creates your LLC. The document requires details like the name and address of your LLC, the purpose of the LLC, the name and address of your registered agent, and information about how your LLC will be managed. It should be filed with the California Secretary of State and the current fee (as of my knowledge cutoff in September 2021) is $70. There’s no hard deadline for filing, but the sooner you file, the sooner your business can legally operate.
- Create an Operating Agreement: Although this isn’t required by the state, it’s highly recommended. An operating agreement lays out the organizational structure of the company, including the roles of each member, the distribution of profits and losses, and procedures for members leaving or joining the company. There’s no deadline for this document as it doesn’t need to be filed with the state, but it should be completed before your LLC starts doing business.
- Get an Employer Identification Number (EIN) from the IRS: An EIN is required by the IRS for tax purposes. You’ll also likely need it to open a bank account in your LLC’s name, among other things. You can apply for an EIN online through the IRS website. This is usually done immediately after your LLC is officially formed and there’s no fee for this service.
- File Statement of Information: You must file a Statement of Information (Form LLC-12) with the California Secretary of State within 90 days after filing your Articles of Organization. After the initial filing, it’s due every two years during the filing period, which is the calendar month when the original Articles of Organization were filed and the immediately preceding five calendar months. The filing fee (as of my knowledge cutoff in September 2021) is $20.
- Pay California State Taxes: In California, all LLCs are required to pay an $800 Annual Franchise Tax. This is due by the 15th day of the 4th month after the filing of your Articles of Organization, then yearly thereafter. In addition, if your LLC’s annual gross revenue exceeds certain amounts, you’ll also have to pay a Gross Receipts Tax.
- Comply with Regulatory Requirements and Additional Tax Information: Depending on the nature of your business, you may need additional permits or licenses, and you might also need to register for state sales tax. There’s no universal timeline for this step since it depends heavily on the specific requirements of your business.
- Obtain Any Necessary Business Licenses and Permits: The timeline for obtaining local licenses and permits depends heavily on your location and the type of business you’re running. Local government websites usually have information about the required licenses and permit for different types of businesses. It’s generally a good idea to have all necessary licenses and permits before you begin
Reference: https://howtostartanllc.com/california-llc