Form an LLC in California with Tailor Brands for Free

Choose a business name that represents your business and makes a good first impression, while also staying compliant with California LLC naming conventions. Avoid misleading names and use the word “LLC” in your business name.

Your chosen business name should not be used by any other business entity within the state. Conduct a business name search to ensure that your chosen business name is unique and not very similar to one used by any other business.

Once you find the perfect business name, it’s a good idea to reserve your business name so that no one can take it before you complete your registration process. You can reserve your name for 60 days by submitting an application at a nominal charge.

While you’re reserving your business name, it’s also a good idea to secure a domain name that matches your business name. And if you plan to use social media marketing, secure matching names for your various social media accounts as well.

Secure the services of a California registered agent. They should be a resident (over 18 years of age) of California, with a physical address in the state, and should be available during regular business hours on weekdays.

The registered agent will be responsible for informing you when your Limited Liability Company is sued. They’ll receive all legal documents on your behalf and notify you of any upcoming business compliance requirements and deadlines.

Choose whether you want to start a domestic LLC in California or a foreign LLC. If you have already registered an LLC in another state and just want to operate in California, you’ll need to register your business as a foreign LLC in the state.

You’ll also need to choose between a member-managed or manager-managed LLC. The former is run by LLC owners, who act on behalf of the LLC and make decisions. In the case of the latter, you need to appoint managers to run and manage your LLC.

Every Limited Liability Company in California is required to have an LLC operating agreement, though they’re not required to file it. This is an important document that outlines the rules on how the LLC should be managed.

Your California LLC operating agreement lays down the rights of each member, guidelines for management, criteria for dissolution, succession plan, and more. Operating agreements guide the way an LLC is run and decisions are made.

The next step in this guide on how to start an LLC in California is to register your business with the Secretary of State and file your LLC articles of organization. This will make your business legal and ready to operate within the state

You can submit your application online, via mail, or in person. The state charges a $70 filing fee, but that may change. Submit all required business documents along with your application and it’ll get approved within 7 business days.

Once you form an LLC in California, you’re required to submit a California Statement of Information within 90 days from the date of registration. After that, you will need to file this statement every two years to keep your business up and running.

This can also be done online, via mail, or in person, and requires a $20 filing fee. Every time you file your biennial report, you’ll need to pay this fee. In California, this is filed by filling out and submitting Form LLC-12 with the Secretary of State.

Once you’ve completed the previous step, your LLC is officially registered. However, you still need to complete a few more steps before you start operating your business with the state. Getting an EIN or Tax ID is the first step in this list.

An Employer Identification Number is a must if you want to hire employees and pay salaries. It is also how the Internal Revenue Service identifies your business for tax purposes. So, make sure you get one before you start operations.

It is essential to keep your personal and business finances separate and that’s why you need a business bank account. You will need both an EIN and an LLC operating agreement to open a business bank account in California.

Having a separate business bank account is also necessary to ensure that your personal assets are protected if the business gets sued. A separate account will prove that your LLC is a legal entity in itself, separate from the LLC members.

Another step you need to take before you start running your LLC in California is to acquire all the necessary licenses and business permits you need to operate. This differs from business to business, so you need to check the requirements for your business.

You may need both state and federal licenses, including both general and occupational licenses. General licenses are required for all businesses operating within an area, while occupational licenses differ by type of business and industry.

One of the key benefits of forming an LLC is that you can choose how you want to be taxed — a Sole Proprietorship, a Partnership, or a Corporation. A single-member LLC, for example, is a disregarded entity and not taxed separately as a business.

A multi-member LLC can choose to be taxed as a C-Corp or an S-Corp or go with the default pass-through taxation. Irrespective of the tax structure, all Limited Liability Companies in California need to pay the $800 annual franchise tax.

The essential steps for forming an LLC in California ended with the previous step. Filing for a DBA (Doing Business As) is completely optional and required only if you want to run your day-to-day business under a different, preferably shorter name.

An LLC in California is required to follow certain naming conventions, like adding words like “LLC” in the name, which makes the legal business name longer. Getting a fictitious name allows you to use a shorter and more memorable name for your LLC.

When you run a business, you’ll need to use several brand identity elements like a logo or tagline. If you want to ensure that no other business uses your name, logo, brand colors, or other brand identity elements, then you need to get a trademark.

You can register a trademark for your LLC in California to protect your name, logo, or other brand elements. You also need to check the federal US Patent and Trademark Office (USPTO) to ensure no one has a federal trademark for the same.

Once you’ve started an LLC in California, it’s important to stay compliant with the state’s rules and regulations to stay in good standing. If not, your business may be penalized with a fine or could even be dissolved, in some cases.

These compliance requirements include paying taxes on time, filing the biennial report or Statement of Information with the California secretary of state, making amendments to your business information for major changes, and so on.

Tailor Brands’ Lite plan is ideal for business owners who want a straightforward way to form an LLC in California for free.  

Here’s what you’ll get:

• Form your LLC: Tailor Brands handles the legal paperwork, so you don’t have to.
• Processing within 14 business days: Your LLC will be established in the standard processing time.

Although it lacks extra features like expedited processing or compliance assistance, this plan is perfect for those who just need the essentials to get started.

Go for it if you:

• Are comfortable handling most aspects of your LLC formation independently.
• Don’t require expedited processing.
• Have a limited budget but want professional assistance.

Price: Free

The Essential plan offers more than just LLC formation. It’s perfect for entrepreneurs who want faster processing and added features to help with business compliance and operations.

Here’s what’s included, apart from basic LLC formation:

• Expedited processing: Their team will work on your LLC application on priority and process it within 2 business days, saving you a lot of time.
• Annual compliance support: Tailor Brands will file your mandatory reports and keep your business updated on deadlines, helping you stay compliant year-round.
• Operating agreement establishment: You’ll get access to tools to create a proper LLC operating agreement, which is legally required when forming an LLC in California.
• $30 Amazon gift card: This is a small bonus to help offset your startup costs. You can use it to shop on Amazon for anything, even if it’s not for your business.

This plan is designed for business owners who want a little extra support and faster service. 

Price: $199/year

Tailor Brands’ Elite plan offers the ultimate package for business owners who want to form their LLCs in California and build their brands simultaneously. 

Here’s what’s included:

• $50 Amazon gift card: Instead of $30, you get a gift card for a higher amount with this top-tier plan.
• Online business and branding tools:
  • 1-year free domain: With this plan, you can get a domain for your business website complimentary for the first year.
  • DIY website/online store: Choose from pre-built templates to create a website or online store yourself.
  • 8 free logos: Build a visual identity for your brand with professionally designed logos from Tailor Brands.
  • Digital business card: It houses all your contact information, making it easy for customers to connect with you.
  • Social media post maker: Generate branded social media posts to promote your new business.
  • Business card tools: Customize and design your business cards with ease using their business card tool.

This plan is ideal for business owners want a complete suite of business and branding tools.

Price: $249/year