Under California naming guidelines, the LLC must contain the words “Limited Liability Company” or the abbreviation “L.L.C.” or “LLC”. To check for name availability, a name search can be performed on the State of California website.
The Articles of Organization, Form LLC-1, must be filed to the California Secretary of State’s office. It will include the LLC’s name, management information, purpose, address, and name and address of its registered agent.
There are no publication requirements for LLC’s registered in California. Every California and foreign LLC must file a Statement of Information, Form LLC-12, to the Secretary of State withing 90 days after filing the Articles of Organization. Form LLC-12 is available on the California Secretary of State website and the filing fee is $20.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.