Every state imposes its own rules for filing a limited liability company, or an LLC. Therefore, the following details will guide you on how to file an LLC in California. If your business will have a prevailing influence in the “Golden State,” you need to know this information.
In addition, you can contact me or my staff – book a call to speak to us here: https://mollaeilaw.com.
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When You File an LLC in California, What Are the 5 Basic Steps?
If you plan to file an LLC in California, you need to do the following:
- Choose a name for your LLC. Check the Secretary of State Database first to see that the name has not been taken.
- Select a registered agent. A registered agent represents a person or business that can send and receive your LLC’s mail from 8:00 am to 5:00 pm, Monday through Friday.
- File Articles of Organization. Investopedia defines Articles of Organization as the part of a formal legal document used for creating an LLC. The Articles of Organization define the powers, rights, duties, and liabilities of each LLC member and the same obligations between an LLC and its members.
- File a Statement of Information. This document includes information about an LLC’s owners and officers, the LLC’s business address, and company description. The form must be filed within 90 days of filing the Articles of Organization.
- Get an Employer Identification Number or EIN. You need an EIN to open a bank account for your LLC and pay employees. An EIN can be compared to an individual social security number, but is used to identify businesses for tax purposes.
Why You Need a California Based Business Attorney when You File an LLC in California
While you can file an LLC in California on your own, that is not a good plan. You need legal guidance and support to make sure you do everything right. Also, an attorney can review your documents to make sure they are worded correctly so they cover any future issues with disputes.
You should not form any type of company without professional legal guidance and help. If you plan to succeed in business, you need to be represented legally.
I can help you when you file an LLC in California. Contact me anytime. Simply email email@example.com for further information.
Naming Guidelines You Need to Follow When You File an LLC in California
When you file an LLC in California, you need to follow certain naming rules for forming an LLC. Below are the formalities you need to follow:
- The LLC’s name must include the phrase or name, “limited liability company,” “LLC,” “L.L.C.,” “Limited,” “Ltd.,” “Company,” or “Co.”
- You cannot give your LLC a name that would confuse it with a government agency, such as “Treasury” or “State Department.”
- Restricted words, such as “Attorney” or “Bank” may require additional documentation, or a licensed professional, such as a lawyer, to be part of the LLC.
- Refer to the California Code of Regulations to review the naming rules for an LLC.
When You File an LLC in California, What Represents a Member-Managed and Manager-Managed LLC?
Basically, you have 2 choices of LLCs when you file an LLC in California – member-managed or manager-managed.
As the name suggests, a member-managed LLC engages the LLC members in the operations of the LLC. Therefore, members have a say in daily operations. They can also vote on major business decisions.
Mollaei Legal Tip: A member-managed LLC is sometimes referred to as decentralized management. That means the administration of the LLC is allocated among the members, rather than centralized (manager-managed), or management-based.
An example of a member-managed LLC is when members, such as partners, or a husband and wife, share in running the company. Rather than getting help from a management outsource, they remain the sole members and operators of the LLC.
A manger-managed LLC typically works when you have a large number of LLC members, or the members of the LLC do not wish to engage in the daily operations of the business.
By handing the operations over to specific managers, the LLC relieves members from certain responsibilities, such as voting or resolving disputes. A manager-managed LLC allows managers to make the business decisions for the company.
When you File an LLC in California, How Do Your Draft the Articles of Organization?
One of the primary documents you need to submit to the Secretary of State, when you file an LLC in California, are the Articles of Organization. In California, this paperwork is filled out on Form LLC-1. The filing fee (as of 2021) is $70.00.
Before you submit the form, you need to consult with a business attorney to make sure it is completed properly. The Operating Agreement for an LLC does not need to be filed, but should be held by the company.
The Operating Agreement outlines the LLC’s operating procedures and ownership responsibilities. It is a required legal document that must be maintained by the LLC. The document is designed so owners remain on the same page to avoid future conflicts.
To draft your Articles of Organization or Operating Agreement, you need to contact me or my legal team. We can help you with the wording of the contracts, filing, and processing. Book a call to speak to us here: https://mollaeilaw.com.
How Do I File an LLC in California If I am Expanding my LLC Business to the State?
If you wish to file an LLC in California to grow an existing business, you will need to file a foreign LLC. This can be done easily when you work with me and my legal team. Again, contact me anytime. Email firstname.lastname@example.org. Creating and filing a foreign LLC permits you to operate as a business in several states.
How Do You Receive a Certificate in Good Standing After You File an LLC in California?
After you file an LLC in California, you may want to get a Certificate of Status or Certificate in Good Standing. This document shows that your LLC was legally formed and has been compliant and properly managed. You may need this certificate if you plan to do the following:
- Seek funding from a lender or bank
- Create your business as an LLC in another state
- Apply for specific licenses or permits
To order this certificate in California, you need to fill out a Business Entities request form. I can help you complete and submit the form if you have already filed an LLC and need the certificate. Contact me with your questions anytime. Email email@example.com.
How Do You File an Initial Statement of Information After You File an LLC in California?
You will need to file an Initial Statement of Information after you file an LLC in California. This information is completed on Form LLC-12, and must be filed within 90 days of the formation of your LLC.
I can help you organize your paperwork so filing and submission of LLC documents is both streamlined and timely. Email firstname.lastname@example.org.
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