How do I Convert to an LLC in California?

You must file two forms to convert your company to an LLC in California.

For some businesses operating in California there may be tax benefits to registering as a limited liability corporation (LLC). As the name suggests, registering as an LLC also limits corporate liability in certain cases of poor, yet non-negligent, business performance. If you want to convert your existing business to an LLC in California then you need to file a pair of forms with the California Secretary of State office.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• $95 for filing fees

File LLC Articles of Organization

1. Download the form for filing Articles of Organization for a Limited Liability Company from the State of California Secretary of State website (see Resources).

2. Fill in the name of your existing company in box 1. Append the phrase "Limited Liability Company" or the initials "LLC" or "L.L.C." at the end of your company's name.

3. Fill in the name of the registered agent for service of process in California. The registered agent must be an individual or corporation that maintains a physical presence in the state of California; any civil or criminal lawsuits or summons that must be served to your LLC will be served to the registered agent.

4. Provide the agent's address in box 4, if the agent is an individual. If the registered agent is a corporation, then that corporation must already be registered with the California Secretary of State.

5. Indicate who will manage the LLC in box 5. Your LLC may be managed by a single manager, multiple managers, or all members of the LLC.

6. Sign your name and write the date in box 7 of the form. If you are registering as both the manager and organizer of the LLC, then append the phrase "Manager of (LLC Name), Organizer" at the end of your name.

7. Mail the completed form to:

   Secretary of State

   Document Filing Support Unit

   PO Box 944228

   Sacramento, CA 94244-2280

   Attach a $70 check (as of August 2010) to cover the filing fee, made out to the California Security of State.

   Alternately, you may deliver the form in person to the Secretary of State's Sacramento office, at:

   1500 11th Street, 3rd Floor

   Sacramento, CA 95814

   If you choose to deliver the documents in person then you must pay a $15 handling fee in addition to the $70 filing fee.

File LLC Statement of Information

1. Download the LLC Statement of Information form from the California Secretary of State website (see Resources).

2. Fill in information regarding your LLC, its managers, and its agents in boxes 1 through 12.

3. Provide your signature and the date of completion in box 13.

4. Mail the completed form, along with a $20 check made out to the California Security of State, to:

   Secretary of State

   Statement of Information Unit

   PO Box 944230

   Sacramento, CA 94244-2300

   Alternately you may deliver the form in person to the Secretary of State's Sacramento office, located at:

   1500 11th Street, 3rd Floor

   Sacramento, CA 95814

Tips & Warnings

• You must file the LLC Statement of Information within 90 days after filing the LLC Articles of Organization. You'll need to update the LLC Statement of Information every two years.

Resources

• California Secretary of State: LLC Articles of Organization
• California Secretary of State: LLC Statement of Information