What are the steps I should take to form a limited liability company (LLC) in California?
To form a limited liability company (LLC) in California, the following steps must be taken:
- Choose a name for the LLC that has not already been taken. The name must include the words "Limited Liability Company," "LLC," or "L.L.C."
- File Articles of Organization with the California Secretary of State. This document must include the name of the LLC, the name and address of the registered agent for service of process, and the names and addresses of the LLC's members or managers.
- Publish a notice of intent to form the LLC in a newspaper in the county where the LLC is located. This notice must be published once a week for four consecutive weeks.
- Obtain a tax ID number from the Internal Revenue Service (IRS).
- File a Statement of Information with the California Secretary of State within 90 days of filing the Articles of Organization. This statement must include the LLC's name, address, registered agent, and the names and addresses of the LLC's managers or members.
- Obtain any business licenses or permits required by the state or local government.
- Create an LLC operating agreement that outlines the rules and regulations by which the LLC will be governed. Although it is not required by law, it is highly recommended to have this agreement in writing to avoid any potential disputes among members.
Potential limitations or exceptions to this advice may include additional requirements or regulations imposed by a specific industry or profession. For example, some professions such as law or medicine may require additional licensing or registration. Therefore, it is important to consult with a licensed attorney or research any industry-specific requirements before forming an LLC.
Further action may be necessary in the event that the LLC changes ownership or management, or if the LLC wants to change its business structure to a different entity type. In these cases, it is recommended to consult with a licensed attorney to ensure that all legal requirements are met.
This advice is intended for general informational purposes only and should not be relied upon as a substitute for legal advice from a licensed attorney. Any specific legal questions or concerns should be addressed by a licensed attorney familiar with the relevant laws and legal precedents in the relevant jurisdiction.