Opening a business can be an exciting but stressful prospect. In addition to understanding the market you are attempting to break into, you must also make many important decisions regarding how your business will be run. If you’re a business owner who wants flexibility, informality, and protection from liability, a limited liability company (LLC) may be the best legal structure for you. However, the process to apply for an LLC varies by state. If you want to open an LLC in California, follow the steps below to register your business.
Choose the Name for Your California LLC
When you’re ready to file your documents with the state, you likely already have an idea of what you want to call your business. If you aren’t yet sure, though, you’ll need to make that decision before you can file. Your business name cannot be the same as any other California business — LLC or not — registered with the state. The chosen business name also cannot mislead customers.
File Articles of Organization
In California, the Secretary of State is the entity responsible for registering every LLC in operation in the state. Articles of Organization are an official statement of the business’s name, purpose, and location. You can file it online or in-person at the Secretary of State’s office after paying a filing fee.
Decide on Management and an Agent
Either members or a manager can manage the LLC’s operations. Most LLC management in California is conducted by its members, but a manager can provide more objective guidance. You as a business owner can decide which type of management works best for your business.
Because your California LLC is its own entity that protects your assets, you will need to choose an agent of service process (or registered agent). The agent is the person who receives legal paperwork on behalf of the LLC if it faces litigation.
File Statement of Information
After filing the Articles of Organization, you must file a Statement of Information within 90 days. This document outlines the individuals involved in the LLC. You must refile every two years to ensure state records remain accurate.
California LLC Formation Document Help in the Inland Empire
Congratulations on starting your new business! If you are finding the LLC formation process complex and overwhelming, let ProSe Legal help you streamline your filings. Our team of business formation legal document assistants can assist you in interpreting, completing, and filing your state registration documents.
If you’re ready to begin your business filings, today or call (909) 497-1349 to schedule your appointment!
