How to Start an LLC in California

A Limited Liability Company, or LLC, comes with a multitude of benefits. Unlike corporations, LLC owners are protected from any liabilities and business debts. Starting an LLC is a great way to develop credibility and professionalism in the business world, and can give you leverage in your relationships with customers, partners, and investors. Thinking of starting an LLC in California? Sprinter of Laguna Niguel goes over everything you need to know on how to start an LLC in California in the guide below, where we answer the following questions:

• What is required for an LLC in California?
• How do I start an LLC in California myself?
• How much does it cost to get an LLC in California?

What is Required for an LLC in California?

1. A business name that’s unique and compliant
2. A registered agent or a designated individual with a physical address in California
3. Compliance with any local requirements, licenses, or permits
4. Articles of Organization submitted to the California Secretary of State
5. An Employer Identification Number from the IRS (if applicable)

How Do I Start an LLC in California Myself?

1. Pick a unique name for your LLC. This name must be compliant with California naming rules, and must be followed by LLC, or “Limited Liability Company.”
2. Select a registered agent. This individual will obtain legal and official documents on behalf of the LLC. The registered agent must have a physical address in California.
3. File Articles of Organization. You can access the Articles of Organization form online. You must fill out the form, and you can either file it online with the California Secretary of State or by mail.
4. Get an Employer Identification Number. An Employer Identification Number (EIN) is a unique nine-digit number used for tax purposes. This is required if you have employees or if your LLC has more than one number. If you don’t already have an Employer Identification Number (EIN), you will need to apply for one through the IRS.
5. Abide by Local Requirements. No matter if you’re in Laguna Beach or San Juan Capistrano, you should determine whether LLC needs to be compliant with local requirements. Certain business activities may require specific permits or business licenses from local authorities.
6. Form an Operating Agreement. This step isn’t mandatory, but it is recommended that you create an Operating Agreement to outline the internal operations of your LLC. An Operating Agreement is used to define ownership percentages, member responsibilities, and profit distribution.

How Much Does It Cost to Get an LLC in California?

So, how much does it cost to get an LLC in California? The cost to form an LLC in San Clemente or any city in California is composed of two things:

1. Annual Fees. California mandates an annual LLC franchise tax which is required no matter if your business is profitable or not. The minimum LLC franchise tax is a minimum of $800 and depends on your LLC’s total income.
2. LLC Filing Fee. It costs about $70 to $85 to file your Articles of Organization. The least expensive option is to file online. You can also file by mail.

Note that California fees and regulations change with time, so we recommend consulting the official California Secretary of State site to obtain up-to-date information on fees and requirements.

Jumpstart Your Business With a Sprinter Fleet

Now that you know how to start an LLC, the next step is to outline your business operations. A fleet of Sprinter vans from Sprinter of Laguna Niguel is an excellent way to get the ball rolling. Browse our inventory of Sprinter vans in Laguna Niguel, and get in touch with us online or call us at 949-693-4369 to learn more about how Sprinter vans can benefit your LLC.