Form an LLC in California with Inc Authority for Free

Choose a business name that represents your business and makes a good first impression, while also staying compliant with California LLC naming conventions. Avoid misleading names and use the word “LLC” in your business name.

Your chosen business name should not be used by any other business entity within the state. Conduct a business name search to ensure that your chosen business name is unique and not very similar to one used by any other business.

Once you find the perfect business name, it’s a good idea to reserve your business name so that no one can take it before you complete your registration process. You can reserve your name for 60 days by submitting an application at a nominal charge.

While you’re reserving your business name, it’s also a good idea to secure a domain name that matches your business name. And if you plan to use social media marketing, secure matching names for your various social media accounts as well.

Secure the services of a California registered agent. They should be a resident (over 18 years of age) of California, with a physical address in the state, and should be available during regular business hours on weekdays.

The registered agent will be responsible for informing you when your Limited Liability Company is sued. They’ll receive all legal documents on your behalf and notify you of any upcoming business compliance requirements and deadlines.

Choose whether you want to start a domestic LLC in California or a foreign LLC. If you have already registered an LLC in another state and just want to operate in California, you’ll need to register your business as a foreign LLC in the state.

You’ll also need to choose between a member-managed or manager-managed LLC. The former is run by LLC owners, who act on behalf of the LLC and make decisions. In the case of the latter, you need to appoint managers to run and manage your LLC.

Every Limited Liability Company in California is required to have an LLC operating agreement, though they’re not required to file it. This is an important documents that outlines the rules on how the LLC should be managed.

Your California LLC operating agreement lay down the rights of each member, guidelines for management, criteria for dissolution, succession plan, and more. Operating agreements guide the way an LLC is run and decisions are made.

Next step in this guide on how to start an LLC in California is to register your business with the Secretary of State and file your LLC articles of organization. This will make your business legal and ready to operate within the state.

You can submit your application online, via mail, or in person. The state has currently waived the filing fee, but that may change. Submit all required documents along with your application and it’ll get approved within 7 business days.

Once you form an LLC in California, you’re required to submit a California Statement of Information within 90 days from the date of registration. After that, you will need to file this statement every two years to keep your business up and running.

This can also be done online, via mail, or in person, and requires a $20 filing fee. Every time you file your biennial report, you’ll need to pay this fee. In California, this is filed by filling out and submitting Form LLC-12 with the Secretary of State.

Once you’ve completed the previous step, your LLC is officially registered. However, you still need to complete a few more steps before you start operating your business with the state. Getting an EIN or Tax ID is the first step in this list.

An Employer Identification Number is a must if you want to hire employees and pay salaries. It is also how the Internal Revenue Service identifies your business for tax purposes. So, make sure you get one before you start operations.

It is essential to keep your personal and business finances separate and that’s why you need a business bank account. You will need both an EIN and an LLC operating agreement to open a business bank account in California.

Having a separate business bank account is also necessary to ensure that your personal assets are protected if the business gets sued. A separate account will prove that your LLC is a legal entity in itself, separate from the LLC members.

Once you’ve completed the previous step, your LLC is officially registered. However, you still need to complete a few more steps before you start operating your business with the state. Getting an EIN or Tax ID is the first step in this list.

An Employer Identification Number is a must if you want to hire employees and pay salaries. It is also how the Internal Revenue Service identifies your business for tax purposes. So, make sure you get one before you start operations.

One of the key benefits of forming an LLC is that you can choose how you want to be taxed—a Sole Proprietorship, a Partnership, or a Corporation. A single-member LLC, for example, is a disregarded entity and not taxed separately as a business.

A multi-member LLC can choose to be taxed as a C-Corp or an S-Corp or go with the default pass-through taxation. Irrespective of the tax structure, all Limited Liability Companies in California need to pay the $800 annual franchise tax.

The essential steps for forming an LLC in California ended with the previous step. Filing for a DBA (Doing Business As) is completely optional and required only if you want to run your day-to-day business under a different, preferably shorter name.

LLCs in California are required to follow certain naming conventions like adding words like “LLC” in the name, which makes the business names longer. Getting a fictitious name allows you to use a shorter and more memorable name for your LLC.

When you run a business, you’ll need to use several brand identity elements like a logo or tagline. If you want to ensure that no other business uses your name, logo, brand colors, or other brand identity elements, then you need to get a trademark.

You can register a trademark in California to protect your name, logo, or other brand elements. You also need to check the federal US Patent and Trademark Office (USPTO) to ensure no one has a federal trademark for the same.

Once you’ve started an LLC in California, it’s important to stay compliant with the state’s rules and regulations to stay in good standing. If not, your business may be penalized with a fine or could even be dissolved, in some cases.

These compliance requirements include paying taxes on time, filing the biennial report or Statement of Information with the California secretary of state, making amendments to your business information for major changes, and so on.

Here are the features you’ll get with this plan:

• Business name check: On Inc Authority’s website you’ll find a free search box where you can type your chosen business name and see if there are any other businesses that use the name within the state.
• 1-year registered agent services: When you opt for a business formation plan (free or paid), you get the services of a California registered agent, also known as a California agent for service of process.
• Digital document storage: With your Inc Authority account, you get the option to store your business documents like LLC operating agreements, biennial reports, etc. online, where you can easily manage and access them.
• Tax advisory: An LLC in California offers a lot of tax flexibility, but you need some expertise to make the most of it. Inc Authority will provide you with a tax specialist who will help you choose the right tax structure and get maximum tax savings.
• LLC formation: The core service that Inc Authority offers is helping you start your new business. This includes filing your California LLC articles of organization with the Secretary of State’s office and getting it processed.
• S-Corp election and filing: If you want your LLC to be taxed as an S-Corp, you need to fill out and submit an s-election form to get the federal S-Corp status. Inc Authority will help you with filling out and submitting this form.
• Business funding analysis: Another free service offered by Inc Authority with its free plan is business funding analysis. Experts will assess your funding requirements and also offer trusted sources of funding.

The free plan offers all the basic features you need to start an LLC in California. For more personalized services and premium features, check out its paid plans.

Price: Free

Here are the additional services you’ll get with this plan:

• LLC operating agreement: LLCs in California are required to draft LLC operating agreements. With Inc Authority’s Starter plan, you get access to templates for creating a comprehensive LLC operating agreement.
• Ownership certificates: If you intend to issue ownership certificates for members of your California Limited Liability Company, Inc Authority will help you with that by providing a template for creating such certificates.
• Employer Identification Number: As mentioned earlier, to run an LLC in California you will need to acquire an Employer Identification Number for your business. Inc Authority provides this service with the Starter plan.
• Corporate forms and documents package: You’ll need a lot of business documents to start and run your LLC. Inc Authority’s corporate forms and legal documents package will help you draft these documents.
• Annual compliance notifications: While you may not get a dedicated account manager, like in the Fastrack plan, their team will send notifications on your business’ compliance requirements and upcoming deadlines.
• Detailed tax consultation: Unlike the free consultation that comes with the free plan, this involves a more comprehensive evaluation of your business’ tax requirements and offers the best-possible tax savings.
• Web domain + 5 business email addresses: If you plan to create a website for your business, you’ll need a domain name that matches your business name. With this plan, you’ll not only get that but also 5 different business addresses.

Price: Custom

Here are the additional services you’ll get over the Starter plan:

• Customer success advisor: With Inc Authority’s highest-tier plan, you get a dedicated customer success manager who will help you with your LLC formation process. They’ll answer all your questions regarding the procedure and guide you throughout the process till your business is up and running.
• Private banking specialist: As mentioned earlier, you’ll need a separate business bank account to ensure that your personal and business finances are separate. Inc Authority assigns a private banking specialist to all it’s priority clients who will help you find the best banking options and checking accounts for your LLC.

• Personalized business advisory: This is probably the biggest benefit of choosing this plan by Inc Authority. You’ll get highly personalized, high-touch services, including personalized business advisory from experts in different fields who’ll help you quickly grow your business and take it to the next level.

• Expedited preparation & filing: Another important benefit of going with the Fastrack plan is that you get expedited filing.This means that their team of experts will prioritize your application and review and submit it within the same day. Som if you need priority service, this is the plan you should choose.