In California, starting an LLC entails designating an agent for service of process, filing Articles of Organization Form LLC-1, and more. Explore our guide to learn the essential steps of the California LLC formation process to help ensure a smooth entry into the business landscape.
Want to learn how to start an LLC in California to launch your business? With millions of residents and a wide range of potential industries, the Golden State presents many opportunities to ambitious entrepreneurs. In 2021, WalletHub ranked California as number three among its 10 best states to start a business. Some reasons for this high ranking include access to resources and availability of human capital.
Starting a business as an LLC is a smart way to give your company security. This type of business entity can protect your personal assets, give you flexibility in running your business, and identify your company with the state of California. An LLC can also help add perceived legitimacy to your business idea.
That said, forming an LLC in California can seem trickier than trying to merge lanes in bumper-to-bumper L.A. traffic. But don’t worry. This guide will walk you through the entire process, step-by-step, for forming your California LLC. We’ll also show you how our professional services help you cut through the red tape so you can focus on running and growing your business.
Starting a CA LLC begins with choosing a name. You’ll need to check that the name you want isn’t already registered to another business owner. Your name must also follow all state guidelines. For example, LLC names can’t be vulgar or include words that might mislead the public.
Next, you’ll need to find an agent for service of process and fill out paperwork, such as Form LLC-1 the Articles of Organization and Form LLC-12 a Statement of Information (within 90 days of initial registration). These forms tell the state of California basic information about your company, such as who’s involved, where you’re located, and what type of business you’re in. Filing these forms will allow you to move forward with your new company. California also requires you to create an LLC entity operating agreement, which details how your business will be run.
Finally, you’ll get set up with the IRS and apply for any business licenses, permits, or insurance policies that are required by your industry.
Below, we’ll cover how to form a California limited liability company in six simple steps. We’ll also include some other helpful information to set up your LLC for success.
Note that these guidelines are for starting a domestic LLC, which is one started within the state you’re residing in. A foreign LLC is one that originated in a different state. To register a foreign LLC, you would complete a registration statement for a foreign LLC and follow a different process.
