A Limited Liability Company, or LLC, is one of several types of a business structures available to business owners who are just starting out. An LLC has several advantages, included liability protection for business owners and pass-through taxation.
If you have chosen to make your business an LLC in California, there are several steps you must take. One of the main steps of the process involves filing the articles of organization for your LLC with the Secretary of State’s office.
What information should be included?
The purpose of articles of organization is to provide information about your business entity. Your document will generally include the following information:
- Proposed company name (name must meet all requirements for approval) and physical and mailing address.
- Name and address of California registered agent (individual or certified corporation for the purpose of service of process).
- Type of management structure (e.g., one manager, multiple managers, or all LLC members).
- Purpose statement (already included on form, do not alter).
- Signature of individual or entity organizing the LLC to ensure the accuracy of the document.
Once you have completed the form, you must pay a filing fee of $70 and file your form online, through the mail, or in person (which requires an additional $15 handling fee).
What happens next?
Filing the articles of organization is an essential step to making sure that your LLC is properly registered in California. Once you have completed the filing process, you may move on to other business transactions. As a next step, you should consider drafting an operating agreement for your new company. While you do not have to file your operating agreement with the Secretary of State, you must still have one in place to specify the operating procedures for your business.
