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What are the requirements for forming a limited liability company (LLC) in California?

Picture of Chris Battis By   ·  1 minute read

To form a limited liability company (LLC) in California, there are several requirements that must be met. The following is a list of some of the key requirements:

  1. Choose a name: The first step in forming an LLC in California is to choose a name for the company. The name must be unique and not already in use by another business entity in California. To ensure that your chosen name is available, you can check with the California Secretary of State's office or do a search through the California Business Search Tool. The name must also include the words "Limited Liability Company" or an abbreviation (LLC).
  2. File articles of organization: To create an LLC in California, you must file articles of organization with the California Secretary of State's office. This document provides basic information about the LLC, such as its name, address, purpose, and management structure. There is a filing fee for this document, which as of 2021 is $70.
  3. Designate a registered agent: Every California LLC must have a designated registered agent, who is responsible for receiving legal papers on behalf of the LLC. The registered agent can be an individual or a company, but must have a physical address in California.
  4. File a Statement of Information: LLCs must file a Statement of Information with the California Secretary of State's office. This document provides updated information about the LLC, such as its members and managers, and must be filed within 90 days of forming the LLC and every year thereafter.
  5. Comply with local licensing and tax requirements: Depending on the nature of your LLC's business, you may need to obtain certain permits and licenses from local or state authorities. Additionally, you will need to register for a California tax identification number and obtain any necessary business licenses.

It is important to note that these requirements may vary depending on the specific circumstances of your LLC, and there may be additional requirements or exceptions based on factors such as the industry or location of your business. It is always advisable to consult with an experienced business attorney to ensure that you are complying with all legal requirements and protecting your interests as a business owner.