How to Cheaply File an LLC in California
Registering a limited liability company in California is a relatively simple and straightforward process. Most steps can be done on your own to minimize your startup costs. The filing process does involve a number of unavoidable expenses that cannot be reduced, however, due to administrative and licensing fees. Becoming familiar with the process of cheaply filing an LLC in California can jump-start your business with as little expense as possible.
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Choose a Name
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Select a unique name for your LLC and check it against the California Secretary of State's online database of registered businesses. California LLCs must include "LLC" or "Limited Liability Company" in their name, and names must be completely unique and not designed to be misleading. The online search is free, so your total cost is nil at this point.
Select Members
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Assemble your initial team of LLC owners---called members. LLCs can have as little as one member, with no upper limits. LLC members can also be corporations in addition to individuals. Selecting members is free, as is the next step: selecting a registered agent.
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Appoint a Registered Agent
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Your registered agent will act as a single point of contact between your business and the state of California for any legal or official matters. You can appoint anyone as your registered agent, regardless of his location or affiliation with your company. In practice, LLC members often designate their attorney as their registered agent, since the attorney will eventually see all legal communications anyway.
File Articles of Organization
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The articles of organization act as the official registration document for your LLC. You can download a free, ready-made template for the articles from the California Secretary of State's website. You can also fill in and mail the form yourself rather than consulting with an attorney to save money.
At this point the expenses become unavoidable. You must send in an administrative fee with your articles of organization.
Apply for an EIN
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All businesses that plan to employ at least one employee require a federal Employer Identification Number (EIN). Your EIN acts as your business's tax ID, and you will need it for all tax filings as well as to open bank accounts, obtain insurance and for a range of other administrative issues. Follow the link at the end of this article to find the IRS's free, online EIN registration form.
Obtain Licenses
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Licensing is where the expenses can become heavy for particular business types. Depending on your business and location, you may require licenses at the state, federal or county level. Contact your secretary of state to see if your specific business type requires a state or federal license. Contact your country clerk's office to determine whether you need a local business license.
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