California is the tech haven of the world — where big tech giants like Facebook, Google, Apple, and among others were born and flourished. California is at the forefront of technology and innovation and if you’re planning to start a business that utilizes[OO1] tech, you are in the right place!
Starting a business in California is super easy[OO2] . All you have to do is decide what kind of entity you want to form your business with and you’re good to go. If you want the advantages and protection like that of corporations but simpler rules and regulations, then you must[OO3] form a California limited liability company or LLC.
Briefly, the advantages of forming a California LLC include:
- Limiting and separating your business assets from your personal assets
- Simple filing, compliance and managing of paperwork
- Easy tax filing and potential tax advantage
Here are six steps to get started.
6 Steps for Forming Your LLC in California
Step 1: Gather all your Members’ Information
The first step is to gather all the information about your limited liability company, as well as the names and addresses of your LLC members or managers. The LLC members/managers are basically the ones who own and run the business and can take profits out of the business to pay themselves.
Step 2: Choose a Name for Your LLC
In order to start operating as an LLC, you need to choose a unique name for your business. You should have a distinctive California LLC name that has never been used by an existing company or business. To check whether your business name is unique, you can run a name search on the California Department of State website.
Learn more on how to name your LLC here.
Step 3: Provide an Official Business Address for Your California LLC
Your California LLC should have a designated official business address. This could be your home address or your business office’s address. Make sure it has a street address but not a P.O. Box.
Step 4: Hire a Registered Agent for Your California LLC
Every California LLC should have a “Registered Agent”. A California registered agent is responsible for receiving and forwarding of important documents from the Secretary of State and vice versa. Your registered agent is also responsible for keeping all your records safe, complying with state requirements, filing of reports, remind you about taxes and so much more.
A California registered agent can be yourself, your accountant or attorney or somebody you can trust that has a physical address in the state of California.
At LLCINC, we offer registered agent service at an affordable cost. For only $129/year, we get you covered for all important updates, deadlines, and correspondence from the government and your LLC. Your documents will be handled by our professionals who are experts in the field.
Learn more about California Registered Agents here.
Step 5: Get an EIN
You will need an EIN to identify yourself as business to the IRS. EIN or Employer Identification Number is useful when you are filing and paying for taxes or when you need to hire employees. You can get an EIN directly from the IRS, or have someone to get it for you.
At LLCINC, we offer EIN service for only $79. Learn more about it here.
Step 6: File Articles of Organization
As soon as you’re done gathering all the information above, it’s about time to file a formal document called “Articles of Organization” to the California Department of State.
You should include the following information in your Articles of Organization:
• Your business name and address
• Information about your Registered Agent
• Information about your managers or members at the time of filing. This includes their names and addresses.
Two ways to file your articles of organization:
1. You can mail it directly to the California Secretary of State using the following addresses:
Department of State
Division of Corporations
2661 Executive Center Cir.
Tallahassee, FL 32301
Department of State
Division of Corporations
P.O. Box 6327
Tallahassee, FL 32314
If you need help regarding your LLC formation, do not hesitate to contact us. We offer California LLC Filing free of charge. Learn more about it here.
Need quick and easy LLC filing? Hire us!
Free Filing + State Fee
(Note that our LLC filing service is FREE of charge. You just pay for the state fee.)
[OO1]Unnecessary complication of the sentence. Try to keep in short and simple. In this case, “If you’re planning to start a tech business, you’re in the right place.”
[OO2]Since we want to encourage to form their LLC with us and not on their own, I would avoid using “super easy”, or generally suggesting that forming an LLC on your own is easy. Can replace with “not that complicated”
[OO3]If it’s not a legal requirement, and we’re only advising / educating. We might be better of not using “must”. Try switching with “should” “probably”
[OO4]Not sure if that’s true. I think the state append the LLC suffix
[OO5]Since the article will be hosted in our business blog under our brand domain, not sure if we should present it as a link out. The button and CTA below is great.