Get an LLC in California

Your LLC name is probably the first part of your business identity that customers will judge, so it’s important to be thoughtful when choosing it.

The name also has to meet California’s legal requirements:

• Include LLC, Limited Liability Company, Ltd. Co., or some combination of identifiers.
• Don’t use words that might trick people into thinking your company is something that it isn’t, like corporation or bank.
• Be unique! If your name is too close to the name of another business operating in California, your paperwork will be rejected. You can check by doing a Business Name Search in California.

You can find the complete requirements in CA Corp Code § 17701.08.

Your domain name is the first step of getting your business online. From launching a website, building social media profiles, setting up email communications, and printing business cards, choosing a good domain name opens up a lot of doors for your business to reach customers.

A California registered agent (called an agent for service of process) is a person or company that you designate to receive official mail on behalf of your LLC. If your LLC is ever served with a lawsuit, the process server will deliver the paperwork directly to your agent.

Once your agent for service of process accepts the paperwork, your business is legally considered served. The agent for service of process should then forward you your mail—quickly and securely. Appointing an agent is a legal requirement in California.

The registered agent you use is a key part of your business identity. What’s a business identity? It’s the way you present yourself to the world, including potential customers and clients. You start building a business identity as soon as you form a business, and at Northwest, our Registered Agent Service can help strengthen that identity.

Your Articles of Organization are the paperwork you’ll submit to the California Secretary of State to register your LLC. Once they approve your Articles, your LLC is official. But you want to make sure you get it right. Otherwise, they’ll reject your paperwork and you’ll be back at square one.

An operating agreement is just what it sounds like—an agreement on how your LLC should operate. A solid operating agreement will cover how your LLC will undertake important procedures, like voting, allocating profits, and resolving disputes. Operating agreements are internal documents, kept on record with your LLC. They’re not required by law in California, but they’re essential for any LLC.

Tip: Writing an operating agreement is hard. We had our attorneys draft an operating agreement specifically for use in California—you can use it for free.

Your LLC probably needs to get an EIN (Employer Identification Number). Kind of like a Social Security number for your business, your EIN is a nine-digit number that the IRS will assign to your business for tax identification purposes.

You’ll use your LLC’s EIN to open a business bank account, apply for loans and licenses, pay taxes, and protect your personal identity. You can apply for one online with the IRS or hire us to take care of it for you.

Most states have some sort of annual or biennial reporting requirement—in California, you have to file a Statement of Information within 90 days of forming your LLC. It costs $20 to file and requires basic information about your LLC. We recommend that you just file it at the same time you form your LLC.

Then you can forget about it for two years, until it comes due again. And if you want to forget about it forever, you can hire us to file the California Statement of Information for you.