What steps are required to create an LLC in California?

| Nov 5, 2019 | Business Transactional Work |

It might be hard to believe but developing a limited liability company (LLC) in California is not especially difficult. In truth, most entrepreneurs could perform the required steps alone. However, there is much more to creating a prosperous new business enterprise than executing a few simple steps. To ensure that you set yourself up for maximum success, it is wise to engage an attorney experienced in business transactional work.

To answer the question of what is involved in creating a California LLC, please see the following list of required steps.

  • Choose a business name: The name you select must be unique and unlike other business names. It must also include the term, Limited Liability Company, or one of the term’s abbreviations (LLC or L.L.C.).
  • Draft an operating agreement: While the law does not require this step, it is wise to create a legal document describing your business and its management model. A business transactional work lawyer can provide valuable guidance with this step.
  • File necessary documents: Specifically, you must file your Articles of Organization and a Statement of Information with the California Secretary of State. Again, an attorney can help you meet these critical requirements.
  • Attend to tax issues: The state requires that you take care of several tax matters within the first year of starting a new business. You must also be prepared to pay taxes on an annual basis as well.
  • Acquire permits and licenses: Whether your business falls into a city or county jurisdiction, you must acquire the proper licenses and permits. If you fail to get these documents, you can face very expensive fines.

The steps outlined here represent only the basic requirements of starting an LLC. You can get more personalized information from a legal advocate with a background in business transactional work.

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