LLC in California

Asset Protection for California LLCs

Business owners who are operating in the state of California can benefit by forming a Limited Liability Company (LLC) to separate and protect their personal assets from their business obligations. It is not a requirement to be a U.S. citizen or a California resident for a Limited Liability Company formation in California, and only one member is now required. Customers should note that an in-state address where records will be maintained must be listed on the initial report, and LLC.com does not provide a records address for a California LLC.

California LLC Annual Requirements

A California LLC must file its initial report, called the Statement of Information, with the California Secretary of State within 90 days of the company's formation. The report is then due to the state biennially by the company's anniversary date.

LLCs are also responsible for a flat franchise tax fee of $800.00 assessed by the California Franchise Tax Board. The initial franchise tax is due by the 15^th day of the fourth month after the company's formation, and annual franchise taxes must be prepaid by the 15^th day of the fourth month of each tax year. California LLCs are also assessed an additional fee on annual income exceeding $250,000.00. For more information regarding business tax requirements, visit the California Franchise Tax Board.

Operating in Multiple States

If your company will do business in multiple states, or you plan to transact outside the states where your LLC was formed, the LLC will most likely need to "qualify" to do business in another states.  LLC.com can assist you in registering a California Limited Liability Company to operate in additional states as needed. Contact an LLC Business Specialist or click here for more information about our qualification services.

When to Research Further

It is important to note that some businesses may not be able to form a California LLC. Many professional licensing agencies in California prohibit businesses that will offer a professional service (for example, law or medicine) from forming an LLC. Customers should consult the California agency through which they received their professional license for specific guidance regarding the appropriate entity type for their business.

Ready to Start an LLC in California?

To begin the California LLC formation process, complete our brief online order form or contact an LLC Business Specialist at 877-261-9606 or 302-636-5457.

California Online Resources

California LLC Name Database

Business Licensing and Permits

Basic Tax Information

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