How to Form an LLC in California for a Small Business
A California limited liability company (LLC) acts as a separate legal entity from the owners (members) of the business. In addition, members of a California LLC have limited liability from debts and obligations that arise in the course of conducting business. As a condition of forming an LLC in California, the appropriate documents must be filed with the state. California LLCs also must obtain the appropriate permits and licenses to legally operate.
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Instructions
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Select a name. A newly created LLC in the state of California must have a business name unlike any other registered entity in the state of California. You can conduct a name availability search on the California Secretary of State website.
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File articles of organization with the California Secretary of State's office. The office's website provides fill-in the blank articles of organization for download and printing.
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File a statement of information with the California Secretary of State's office.This can be done on the office's website. New LLCs must file a statement of information within 90 days of filing articles of organization.
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Create a written operating agreement to be kept at the business. According to the Paralegal Plus website, an operating agreement for a California LLC may include provisions such as the responsibilities of members, allocation of profits and losses and procedures for dissolving the company.
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Apply for an employer identification number (EIN). California LLCs may obtain an EIN from the IRS. LLCs in California that apply by phone or online will receive an EIN for immediate business use.
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Register for California taxes with the State of California Franchise Tax Board. California LLCs with employees may obtain a state account number online using California's Employment Development Department website. Other state taxes a California LLC will need to register for will depend on the nature of the business.
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Obtain licenses and permits. California LLCs that provide professional services, such as chiropractors or barbers, must obtain the proper occupational license from the state. All LLCs in California must obtain a general business license from the city or county clerk's office where the LLC operates.
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