If you are a California resident, the allure of entrepreneurship can be understandable. After all, there are a number of major hubs of the industry right in your proverbial backyard. From the bright lights of the entertainment business in Hollywood to the rapidly booming tech sector in Silicon Valley, California is a hotbed for new businesses and start-ups. If you have found yourself pondering the idea of starting your own business, you are likely deep in the throes of planning and preparation. What is your product? Who are your customers? Do you need to hire a team? These are just a few questions you may be asking yourself. If you are thinking about forming an LLC in California, you may also be wondering how to go about getting started.
Limited Liability Companies (LLCs) are popular legal structures in the entrepreneurial space. The reasons for this largely come down to their ease of setup and the relatively low maintenance they require. LLCs also provide valuable incentives to business owners, making them uniquely appealing compared to certain other business structures. Read on to learn more about how you can start your own Limited Liability Company in California using our online forms.
Why Forming an LLC in California Makes Sense
When you create an LLC, you are affording your business the concept of “limited liability.” What that means, in a nutshell, is that should your business face bankruptcy or expensive lawsuits, you and the other members of the LLC will be able to protect your personal assets. As this goes a long way to mitigate the risks inherent to starting a business, it is not difficult to see why new business owners create LLCs.
The Internal Revenue Service (IRS) also treats LLCs as “pass-through” organizations. With this designation, profits created by your business are not taxed off the top–rather, that money passes through to the members of the LLC, who then pay income taxes on their salaries. As you can likely imagine, this prevents your business from being effectively taxed “twice”, which is a valuable incentive.
How to Form Your California LLC Online Today
To create your LLC, you must first select a name for your business that is not currently registered with the state. You can check the Secretary of State’s online database to see what is available and what is taken. You will also need to appoint a registered agent. The role of this person is to receive all government, tax, and legal correspondence on behalf of your organization. With those pieces in place, you can then move ahead with drafting your Articles of Organization.
At Corporation Center, we offer an easy-to-use web template for your Articles of Organization. With just a handful of details about yourself, your business, and your registered agent, you can process your forms via our SSL-encrypted web portal. To learn more about our services and offerings, take a moment to browse our website–we offer LLC forms and more for all 50 states.