California is a center of technology, entertainment, innovation and businesses that are changing the world. Some of the biggest brand names have started their business in California — from Dollar Shave Club and Snapchat to the big tech giants such as Facebook, Apple and Google. California is at the forefront of technology, and is brimming with top employee talent and beautiful locations to live. If you’re inspired to start your own business in California, one of the best ways to do so is by forming an LLC. Limited Liability Companies (LLCs) are a business entity designed for startups, and small- and medium-sized businesses.
LLCs are simple and inexpensive to set up in California. They provide you with many of the protections and advantages of larger corporations without all the rules, regulations and compliance issues common to other types of California business entities. First, let's understand the advantages of forming an LLC in California:
LLCs in California have many benefits...
Your California LLC must have a designated business address. That could be your home address (if you’re running the company from your residence) or where your office is located. You can’t use a PO Box, the address must be a physical street address.
Every California LLC must have a "registered agent". That could be you, the managing director, owner or a dedicated registered agent service. The registered agent in California is someone who receives official legal and tax correspondence and has responsibility for filing reports with the California Secretary of State.
At Incfile, all of our packages include a "Registered Agent" service free for the first year and $119 per year thereafter. We also have a dashboard you can login to and easily view any document your registered agent has received on your behalf. Here are a few reasons you might want to appoint Incfile as their registered agent service...
There are more considerations, but this should help you with your decision to use a Registered Agent service.
The LLC members are the individuals who own and run the business. They typically withdraw profits from the business to pay themselves. California requires you to list the names and addresses of all managers or members when you register the LLC. You can register these addresses as street addresses or P.O. boxes.
Once you've gathered all the information together for your LLC, you’ll need to file formal documents with the California Secretary of State. Incfile can also do this on your behalf.
An LLC should have an Operating Agreement. This defines how the business runs, how managers and members are chosen, rights and duties of members and several other key areas. Here’s how to create your Operating Agreement. If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.
You can find lots more useful information on how to form an LLC here. It answers questions like:
Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps, such as filing the articles of organization on your behalf. Our basic package also provides a free registered agent service for the first year. If you're looking for help to start an LLC, our comprehensive services provide outstanding value.
*Note that some types of businesses cannot be formed as LLCs in California so you will need to choose a different business structure if you are one of these types of businesses.
|State Fee||State Filing Time||Expedited Filing Time|
|$75||15 Business Days||5 Business Days|
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.
Due Date: During six-month period ending on last day of anniversary month of incorporation or qualification.
Filing Fee: $20
Important:The initial Statement of Information filing is due within 90 days of the entity formation date.
Franchise Tax Fee: $800 (minimum)
$800 payment for the LLC Franchise Tax is due by 15th day of the 4th month after your LLC is filed. The month your LLC is filed counts as Month 1, regardless if you file on the 1st of the month, the last of the month, or any day of the month, really. This means that if you were to file your LLC on March 22nd, then you must pay the $800 fee no later than June 15th (in this example, March is Month 1, April is Month 2, May is Month 3, and June is Month 4). Then, every year after your first payment $800 LLC Franchise Tax will be due by April 15th. You pay the $800 LLC Franchise Tax using Form 3522 called the LLC Tax Voucher.
(We do not assist in the filing of the Franchise Tax Report)
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+ $75 (state fee)
Prepare & File Articles Of Organization
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EIN / Tax ID Number
Personalized Operating Agreement
Customized LLC Kit
+ $75 (state fee)
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