Form a California LLC - Form an LLC in California – Sun makes California LLC formation easy!

Sun Document Filings can form a California LLC fast! Focus on forming your California LLC business plan and let us form your California LLC. Sun can form a California limited liablity company or register a California LLC correctly the first time. Let us make the California LLC formation process quick and painless for you by preparing and filing a California LLC Articles of Organization with the California Secretary of State on your behalf. Your time is better spent forming your California LLC business plan for a successful California LLC. Protect your assets and form a California single member LLC or a California multi-member LLC. Questions? 888 595-2747

Sun offers two different options to form a California LLC:

1) To form a California LLC entirely online, click here to see the costs and time turnaround options for a California LLC.

2) If you are an attorney, accountant, or an entrepreneur that would prefer to prepare the Articles of Organization and utilize our services to file the Articles of Organization with the California Secretary of State on an expedite basis, click here for rush options and fees.

How do I form a California LLC?

There is no need to ask, "How do I form a California LLC?" because we know how to form a California LLC from start to finish. First, we check LLC name availability with the California Secretary of State. Second, we prepare a California LLC Articles of Organization. Third, before we form a California LLC, we verify that the Articles of Organization are free of errors. Fourth, we will register a California LLC by filing a California LLC Articles of Organization with the California Secretary of State. Fifth, after the California Secretary of State files a California LLC Articles of Organization, we will return the filed document to you. We make forming a California LLC simple and fast!

What is a California LLC?

A California LLC or California limited liability company is a type of business entity that is independent of its owner(s). A California LLC can consist of one or more members which may be individuals, partnerships, trusts, estates, associations, corporations, other limited liablity companies (LLC), or other business entitites as allowed by the state of formation. The members of a California LLC are afforded limited liablity similar to shareholders of a corporation and are allowed pass-through taxation benefits that is comparable to a partnership. Forming a California LLC can be the best of both worlds.

What are the advantages of forming a California LLC?

A California LLC or California Limited Liability Company combines the advantages of a corporation and a partnership. The members of a California LLC are allowed limited liability protection of a California corporation with the pass-through taxation of a partnership. All personal assets of the members are protected from creditors for debt and from judgments against a California LLC. Provided a member did not use their personal assets to secure loans or personally guarantee the debt for a California LLC. Unlike a Sub-Chapter S Corporation whose shareholders are limited to 75, there is no limit to how many members a California LLC can have. For the flexibility and taxation benefits, LLC’s have become very desirable to business owners.

How do I decide if I should form a California LLC or California S corporation?

- Most business owners that decide to form a California limited liablity company (LLC) do so because of its flexibility in taxation.
- A California S corporation eliminates double taxation but it lacks the flexibility of a California LLC in distribution of income to the owners.
- A California LLC can have several classes of membership interests and can consist of one or more members (in most states) which may be individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, foreign nationals, other limited liability companies or other business entities.
- A California S corporation can only be owned my individuals, issue only one type of stock, and is limited to no more then 75 shareholders.
- For more information, view our Entity Comparison Table. The Entity Comparison Table will show the advantages and disadvantages of different types of business entities.
- If you decide to form a California S corporation instead of forming a California LLC, click here for incorporation services.

To form a California LLC online, click here to see the costs and time turnaround options for a California LLC.

Who controls or manages a California LLC?

A California LLC is owned and organized by its members. Members to a California LLC are the equivalent as partners are to a partnership or shareholders in a corporation. Members have the option of managing a California LLC themselves or if they prefer, they can choose to elect managers to operate a California LLC. Managers are agents of the company and have the authority to bind the company to third parties. The flexibility in management is one of the reasons LLC’s are so appealing.

How many people or business entities are required to form a California LLC?

In most states, only one entity or one person is required to form a California LLC. In terms of taxation, the IRS does recognize single member California LLC’s and allows pass-through taxation. Although the Internal Revenue Service allows one member California LLC’s with pass-through taxation, some states may not afford equal treatment to single member California LLC’s. To avoid any surprises, we recommend that you speak with your accountant or tax preparer to find out how the tax laws in your state would affect your single member California LLC prior to organization.

What titles are owners in a California LLC ?

A California LLC is allowed to have the titles member(s), manager(s), or manging members.

How is a California LLC taxed ?

At the Federal Level -

A California LLC may be classified for federal income tax purposes as a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), partnership or a corporation. If a California LLC has only one owner, it will automatically be considered to be a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), unless an election is made to be treated as a corporation. If a California LLC has two or more owners, it will automatically be considered to be a partnership unless an election is made to be treated as a corporation. If a California LLC does not elect its classification, a default classification of partnership (multi-member California LLC) or sole proprietorship (single member California LLC) will apply.

At the state level -

Your California LLC may be treated differently for tax purposes then at the federal level. Since each state is different, we recommend that you speak to your accountant or tax preparer who specializes in California tax law for specific tax questions.

How do I obtain an EIN or Employer Identification number or Tax Payer ID number for my California LLC?

After we complete a California LLC formation on your behalf, we offer supporting services. We can obtain an employer identification number (an EIN) for your California LLC. An EIN is required to open a bank account, hire employees, and to start business credit for your California LLC. If you purchase our premium package, EIN obtainment is included for your California LLC.

How do I obtain or prepare a California LLC operating agreement?

Often times, you can hire an attorney or paralegal to prepare the operating agreement for your California LLC but that could be very costly. If you purchase our premium package, Sun will prepare the initial operating agreement (standard language) for your California LLC and include meeting minutes (MS Word format) that you can prepare as needed.

To form a California LLC online, click here to see the costs and time turnaround options for a California LLC.

What is a California LLC operating agreement and why is it so important for my California LLC?

A California LLC operating agreement serves as a blueprint for your California LLC. The operating agreement contains the rights, privileges, and powers of the members and managers. A California LLC operating agreement will contain the names and addresses of each member and manager. A California LLC operating agreement will specifiy the percentage each member owns of a California LLC. A California LLC operating agreement will also indicate the capital contribution of each California LLC member. A California LLC operating agreement normally outlines how it can be amended or changed at a future date. Often there is mention of how long a California LLC is allowed to operate, the date of dissolution, or if a California LLC has perpetual existence until the members agree to dissolve a California LLC.

Another important part of a California LLC operating agreement is to create "rules" on how a California LLC can open a bank account, take out loans, write checks, enter into contracts, obtain business credit, and issue membership certificates to its members. As a California LLC member, the most important reason for an operating agreement besides that most states require one by law, is that it protects each members' personal interest, capital contributed, and a detailed outline of the rights and privledges each member is afforded.

What is a California LLC seal?

After a California LLC prepares its operating agreement or has Sun prepare a California LLC operating agreement, a California LLC will need a California LLC seal. What is a California LLC seal? A California LLC seal is a handheld device that imprints paper with a California LLC's name, state of formation, and date a California LLC was formed. Many banks and other lending institutes require a California LLC to possess and use a California LLC seal on business documents or loan papers. All California LLC kits that Sun sells contain a handheld California LLC seal embosser.

What is a California LLC kit?

A California LLC kit is typically a hardbound binder that contains all of a California LLC's important documents such as the California Articles of Organization, operating agreement, and meeting minutes. All of the California LLC kits that Sun sells include the California LLC's name hot stamped (professional imprint of the California LLC's name) on the spine of the kit. Most California LLC kits come with a slipcase to keep the binder safe. Some California LLC kits are made with a slipcase built in. The choice is yours.

Another important part of a California LLC kit is the membership certificates. All of the California LLC kits that Sun sells contain 20 custom membership certificates that include the California LLC's name, date and jurisdiction of formation, and the title of member (s) or manager (s) below the signature lines. If you have already formed your California LLC, you can order a California LLC kit by clicking here. We have a selection of high quality California LLC kits that come in array of styles and colors. Best of all, standard shipping is always free.

Now that you have formed your California LLC, obtained your EIN from the IRS, prepared the California LLC operating agreement, issued membership certificates, and used your California LLC seal embosser, it is time to verify which local city and/or county tax licenses your California LLC business will need. The best place to start is your city hall or county recorder's office. Take the time to verify your area's business licensing requirements. For those of you who plan to run your California LLC out of your home, check with your city or county to find out if a work at home permit is required. Once your licensing requirements are met, it is time to start operating your California LLC.

To form a California LLC online, click here to see the costs and time turnaround options for a California LLC.

We wish you the best with your California LLC business venture! Questions? 888 595-2747