How to Start an LLC in California & Rush the Process
A California limited liability company combines features of a corporation, such as limited liability protection, with the operational simplicity and flexibility of a partnership. Starting an LLC in California is accomplished by filing the proper formation documents with the California secretary of state. The company must write policies and procedures for governing the business, as part of the formation process. For a fee, the California secretary of state allows business owners to rush the LLC formation process.
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Instructions
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Print a name availability inquiry letter using the California secretary of state website. Provide the proposed name of the business. Mail the inquiry letter to:
1500 11th St.
Sacramento, CA 95814
This ensures the name of the California LLC is distinguishable from other entities registered with the California Secretary of State. Avoid using a name that appears too similar to an existing business operating in the state. Add the phrase "limited liability company" to the legal name of the company.
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Print articles of organization from the California secretary of state website. Supply the name and address of the LLC, and the purpose for starting the company. Indicate how long the company will exist, and whether members or non-members will handle the company's managerial affairs. Include the name and physical address of the company's registered agent. The registered agent may be a person or business with a physical address in the state of California, who agrees to accept legal documents on the company's behalf. Communicate the name and address of each organizer responsible for filing the articles with the California secretary of state.
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Print a statement of information from the California secretary of state website. Include the name and address of each member, if the company will be managed by its members. Otherwise, provide the name and address of each manager. Describe the nature of the California LLC's business activities, and the name and address of the company's registered agent.
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Submit the statement of information and the articles of organization in person at the California secretary of state's office. Only in-person filings receive expedited handling. Hand-deliver the documents at the California secretary of state's public counter, located in room 390, Monday through Friday, from 8:00 a.m. to 5:00 p.m. Pay $70, as of 2011, to file articles of organization and $20 to file the statement of information.
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Pay the appropriate rush fee. Pay $500, as of 2011, to receive four-hour filing service. However, you must pre-clear the articles with the California secretary of state when selecting four-hour service. It costs $250, as of 2011, to use the California secretary of state's 10-day pre-clearance service, and $500 to use the 24-hour pre-clearance service. The California secretary of state provides 72-hour pre-clearance service for $400, as of 2011, and five-day pre-clearance for a $300 fee. Same-day expedited handling costs $750, as of 2011, but you must deliver the document no later than 9:30 a.m. You do not need to pay for pre-clearance service when requesting same-day filing service. As of 2011, it costs $350 to request 24-hour filing service.
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Compose an operating agreement to govern the business. There are no specific rules to follow when writing an operating agreement for a California LLC. Include the duties of the company's members and managers. State the method for allocating profits and losses, and communicate the contribution made by each member. Provide the date and time of company meetings, criteria for adding members and the compensation due to departing members of the business. Retain the operating agreement at the company's main office location.
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