Forming an LLC in California

Choosing to formalize your business structure is an important step to protecting your financial future. Many companies choose to form an LLC in California in order to gain financial and legal protection without having the extensive requirements of a California corporation.

If you're looking to form an LLC in California, let incorporate.com do the heavy lifting! We're here to help you with everything from choosing a name to making sure your forms are correctly filed to serving as your registered agent. Contact us today!

Why Form an LLC in California?

A California LLC, or Limited Liability Company in California, has a number of advantages. The California LLC structure limits your liability for the LLC to the total of your investment in it. This means that your personal assets are protected from any business liability. For tax purposes, a California LLC with a single owner is treated as a sole proprietorship while an LLC with multiple owners is classified as a partnership.

A California LLC also allows "multi-tiered ownership", where an S Corporation or a C Corporation can be part of the ownership group of the LLC. This allows for tax benefits and increased liability protection.

Finally, the members' share of the bottom-line (net) profit of an LLC in California is not considered earned income, and is therefore not subject to self-employment taxes. Guaranteed payments from the LLC to members do represent earned income. You can choose each year whether you want your LLC to be taxed as a "pass-through" entity or as a corporation, depending on which is most beneficial.

How to Set Up and Form an LLC in California

Forming your business can be overwhelming, especially with the number of forms and requirements involved. Fortunately, incorporate.com will walk you through every how to start an LLC in California and ensure nothing is missed.

To register an LLC in California, the first step is to choose a name. It's important to have a name that isn't already in use, or too similar to an existing name. incorporate.com will search the databases for you, and then reserve your name in the California LLC system.

The next step in starting an LLC in California is to file the California LLC forms. The Corporation Company helps you file California LLC forms to start your business as well as forms required for ongoing reporting, including the California LLC 12.

We will complete and submit the articles of incorporation, or California LLC-1, based on the information that you enter on our website. We make sure it is filed correctly so you can get your business up and running right away.

If you are looking to register an LLC from another state that is doing business in California, then you may need to qualify that LLC in CA. incorporate.com can file the paperwork to qualify in California by completing the California LLC-5 with the information that you provide to us on our web site.

If your LLC has more than one member, it is strongly recommended that you develop a strong LLC Operating Agreement, although it is not required by law for California LLC formation.

Finally, you'll need to select a Registered Agent for your State of California LLC. incorporate.com acts as the registered agent for many businesses, and we'd be happy to help you as well. We would receive any state or legal paperwork sent to you, and forward it to you quickly and efficiently.

Ready to start setting up an LLC in California? We're here to help you through the process. Contact us to begin today!

Ready to Form Your LLC in California?