Starting a business in California requires completing several steps to ensure the company is legally set up. If you are forming a California Limited Liability Company, filing the Articles of Organization is one necessary step.
The California LLC Articles of Organization are the official paperwork for creating an LLC with the California Secretary of State. You can file by either downloading Form LLC-1 or filing online.
Let’s go over how to file the LLC Articles of Organization in California.
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Steps To Fill Out The California LLC Articles Of Organization
Step 1: Enter the Submitter’s Information
This is an optional section but would be used if the Articles of Organization are being filled out by someone other than one of the owners.
Step 2: Certify the LLC is Not Providing Professional Services
This doesn’t affect many LLCs; however, if the services being provided by the business require licensing from the state, a Professional Limited Liability Company (PLLC) will need to be applied for instead of the regular LLC.
Related: What is a Professional LLC?
Step 3: Pick a Name for the LLC
An LLC name will need to be chosen in the next section. Assuming you haven’t already reserved a name (which is not necessary to complete the filing), you will enter an entity name.
The name of your LLC must not be too similar to the name of another business entity already registered with the state of California. You can verify name availability by doing a California LLC name search with the California Secretary of State to be sure the LLC name is available.
The name of the LLC must include one of the following entity identifiers at the end of the business name:
– Limited Liability Company
– Limited Liability Co.
– Ltd. Liability Company
– Ltd. Liability Co.
– L.L.C.
– LLC
Enter the LLC name, including the identifier, to continue. If you choose a name that is taken, a warning will appear in the name field.
Step 4: Enter Business Addresses
In the first few fields, enter the initial street address of the LLC’s principal office. This will be a California street address or the main location where the business records are kept. A physical address must be used, as P.O. Boxes are not acceptable.
Next, enter the LLC’s mailing address. If desired, this address can be outside of California or a PO Box.
Step 5: Appoint the Agent for Service of Process
The Agent for Service of Process is commonly referred to as a Registered Agent and can be an individual or California Registered Corporate Agent who is authorized to receive and accept legal documents on behalf of your LLC.
An owner can act as the Agent for the Service of Process, or you may authorize an individual outside of the LLC or a registered agent service authorized by your state to act as the agent. The agent must use a physical street address in California and be available at that address during normal business hours.
Related: Can I be my own registered agent?
Step 6: Enter the LLC Purpose Statement, Management, and File Date
In this section, there are a few areas to tackle.
First, there is a purpose statement. The state of California makes this easy by prefilling this section.
Second, the LLC management structure needs to be chosen. Here, you will choose that the LLC is managed by:
One Manager: This is referred to as a Manager-Managed LLC and is when the members of the LLC hire someone to run the business, similar to hiring a CEO for a corporation.
More than One Manager: This is also a Manager-Managed LLC but with multiple managers.
All LLC Members: Most commonly, the LLC members manage the day-to-day operations of the business. This is called a Member-Managed LLC.
Last, the File Date needs to be selected. Usually, the current date is chosen; however, you can have the LLC start up to 90 days in the future.
Step 7: Upload Attachments
Most LLCs don’t need this step, but if an attachment needs to be uploaded, it can be done here.
Step 8: Review, Sign, & Pay
The last step includes reviewing the submitted information, the LLC organizer signing, and paying the state fee to submit the California Articles of Organization.
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California LLC FAQs
How much does a California LLC cost?
The cost to register an LLC in California is $70.
What is the Initial Statement of Information?
The Initial Statement of Information (Form LLC-12) must be submitted to the California Secretary of State within 90 days of filing the Articles of Organization. The filing fee is $20, and if it is not filed within 90 days, a $250 penalty will be assessed.
How fast can I form a California LLC?
The fastest a California LLC can be formed depends on the state. It will typically take 3-5 business days when filing online or 2-3 weeks when filing by mail.
Does California require an LLC to have an operating agreement?
California Corporations Code 17701.10 states that an LLC Operating Agreement is optional.
Although it isn’t required, it is recommended that most LLCs have one, as it can help prevent disputes among members and better protect the LLC’s legal status.
Are there any annual fees for a California LLC?
California LLCs must pay an annual franchise tax of $800 to the California Franchise Tax Board. This yearly tax will be due on the 15th day of the 4th month from the date the LLC was formed.
In addition, there is a California Statement of Information report that will cost $20 annually.
