To open an LLC in California, the main steps are:
- Choose a unique business name that includes "LLC" or a similar designator and is not already taken by another business in the state.
- Appoint a registered agent with a physical address in California to receive legal documents on behalf of the LLC.
- File the Articles of Organization with the California Secretary of State and pay the filing fee ($70 if filed online, plus potential expedited processing fees). This officially creates the LLC.
- File a Statement of Information within 90 days of forming the LLC, a requirement to keep your LLC registered.
- Create an Operating Agreement to outline the ownership and management of the LLC. This is an internal document but highly recommended.
- Obtain an Employer Identification Number (EIN) from the IRS for tax purposes and to open a business bank account.
- Pay the California $800 annual franchise tax, starting the second year after formation.
Additional notes: The LLC name must follow California naming rules, the registered agent can be a person or service with an address in California, and the Statement of Information filing fee is $20. Also, if you want to operate under a different name than the LLC’s legal name, you need to register a fictitious business name at the county or city level. This process can be done online on the California Secretary of State's website or by mail, and there are options to hire services to assist with the formation for a fee.
