California LLC - Formation Documents

[@llcuniversity]

Hey folks, make sure to check the site for most up-to-date information: www.llcuniversity.com/california-llc/forms/. Or select your state and start forming your LLC with our free guides: www.llcuniversity.com/

[@josephvelasquez2677]

hey, I have a question. On section 4, when you wrote (#C3184722), is that something given to you by Northwest after requesting their Registered Agent service?

[@leannevar]

Hi, do you have a video on how to dissolve an LLC in California?

[@mommyorganized9183]

Thanks for this information. Made filling out the info a breeze.

[@llcuniversity]

Awesome to hear. You're welcome.

[@iono_wtfaid]

I just did the process online, not sure if it was available when this video was made. It basically has same parts as the pdf. Maybe could do an update on the video with new online walkthrough. Thanks for the videos seriously well made and informative

[@llcuniversity]

You're welcome! We're aware of the new online filing for CA LLCs, just haven't been in video production mode. Doing a lot of content right now. It'll be live on the site asap and new videos to follow shortly after. Thanks for your note.

[@Turkwest679]

great information, thank you

[@llcuniversity]

Thank you Walter. You're very welcome.

[@oloscarlopez8]

You are a great instructor. Thank you!

[@llcuniversity]

Thanks Oscar! You're very welcome.

[@tooshay7396]

Are you going into the whole PUBLIC vs PRIVATE thing? 1040 vs 1041 forms, TRUSTS, IRS does accounting for the US Treasury &, CPA's are for "the PUBLIC".

[@llcuniversity]

No, we don't get into that. Thanks.

[@ArturoAyalaPhotography]

Very useful information, thank you. At which point I can assigned a DBA?

[@llcuniversity]

Thanks Arturo! Once your LLC is filed, you don't have to worry about a DBA. You'll just do business under the LLC name. The DBA is a fictitious name ("nickname") that represents either an individual or a company. I'm not sure if you need one, but let me know why you were thinking about one? A DBA isn't registered with the SOS though. It must be registered with the county clerk (in the county where you listed your address): business.ca.gov/StartaBusiness/RegisteringaBusiness/FictitiousBusinessName.aspx If you want to see our CA LLC lessons laid out in a better order, see here: www.llcuniversity.com/california-llc/ Let me know if you need anything else!

[@wesleyrodriguez5859]

I understand you can have multiple DBAs under an LLC,..granted the nature of the businesses are the same.I know there are liability risks for all the DBAs under the LLC. Can I just go to my local county clerk's office and fill out the (I think it's called) Fictitious Business Name Statements all together? And last question, when building a website can it be branded the DBA or does it have to be the LLC? Thanks!

[@sivhuskycarrillo8395]

Thaks for the info it really helps 👍🏻

[@llcuniversity]

You're welcome Sivhusky!

[@purposepit7473]

Thank you so much for this. I'm confused that you still have to give your home address/business address on the form even if you use a Commercial Registered Agent. I thought the whole point was to protect your privacy. Why pay a CRA if your personal information will be public record anyway?

[@llcuniversity]

Some states ask for a "business address" and some do not. On the CA Articles of Organization, you can list your Commercial Registered Agent address as your business address if you'd like. Or if you prefer, you can be the Registered Agent, list your address in #2 and #3. Apologies for any confusion. Hope that helps.

[@BreatheWithDinoo]

Great videos! So once you file the Articles of Organization, WHEN are you supposed to pay the $800 LLC fee to the CA Franchise Tax Board?

[@llcuniversity]

If your LLC is approved in February 2020, the first $800 payment (that pays for the 2020 year) is due June 15th 2020. If it were approved in March 2020, it would be by July 15th 2020. Next year, the $800 payment for the 2021 year is due by April 15th 2021. Then it's due by April 15th every year going forward. We've explained a little better on our site: www.llcuniversity.com/california-llc/annual-llc-tax/. Hope that helps.

[@hamletgiragosian6147]

Hi. This is a great presentation. Thank you. Is the $800 annual franchise tax tax-deductible? Thank you.

[@llcuniversity]

Thanks Hamlet. Please confirm this with an accountant: I believe the $800 franchise tax is not deductible on your state return, but it is on your federal return.

[@Jonathan5922]

Very helpful video, thank you. How do I fill out the Mail Submission Cover Sheet that lists entity information? TY

[@llcuniversity]

Hey Jonathan, you're welcome! We have those instructions here: www.llcuniversity.com/california-llc/forms/. Hope that helps.

[@Jonathan5922]

@@llcuniversity Thank you so much!

[@llcuniversity]

@@Jonathan5922 - You're welcome man :)

[@BriceRivera]

also, what if you have two members? where is the section to put our names in?

[@llcuniversity]

The Members are not listed in the CA Articles of Organization. They are listed in your Operating Agreement. See here: www.llcuniversity.com/llc-organizer-vs-member/

[@llcuniversity]

To be even more thorough Brice, you can organize the LLC, then step down as Organizer and list yourself and your partner as members in a "Statement in Lieu of Organizational Meeting" (as well as the Operating Agreement). See here to download the form: www.llcuniversity.com/statement-of-llc-organizer-in-lieu-of-organization-meeting/

[@proudpatriot7682]

Wow great video! Thank you so much for the information. I have a question that I could not find the answer to on your website. After forming an LLC, I am wanting to elect to be treated as an S Corporation. Where in this process should I file for this and what form should I use? I will share this video and your company to anyone that asks me how to go about forming and entity in California! :)

[@llcuniversity]

Thanks for the support! The S-Corporation tax election of an LLC is done with the IRS using Form 2553: www.irs.gov/pub/irs-pdf/f2553.pdf. We don't have a video on this yet, but check out Josh Bauerle's video on how to complete the form: kzbin.info/www/bejne/kJDQnIR8ibFgfpY

[@proudpatriot7682]

Great, thank you!

[@avinashagrawal5079]

Thanks for the great video! I have two questions: 1) Should an H1B Visa holder incorporating an LLC choose member manged or manager-managed? 2) Can an H1B Visa holder form a single member LLC and go back to India, and do all business from India. (The LLC will have a registered agent, a bank account and insurance to cover itself)?

[@llcuniversity]

Thanks Avinash! We're not knowledgable about all the visa/immigration details when it comes to an LLC/starting a business. Best to run things by an immigration attorney. Feel free to share any insights as you come across them. Thanks for your understanding.

[@FTXLIGHTINGTOOLS1]

Great video! When filing the articles of organization form for a two member LLC, do both members need to sign the form?

[@llcuniversity]

Nope, just an LLC Organizer (www.llcuniversity.com/llc-organizer-vs-member/) needs to sign the CA Articles of Organization. The LLC Members are listed in the Operating Agreement: kzbin.info/www/bejne/jqXQdGt_oa10eZI

[@ryanmoyer1]

Great video! Is this form only for a single member LLC?

[@llcuniversity]

Thanks Ryan! Nope, this form (LLC-1) is used for both Single-Member LLCs as well as Multi-Member LLCs. Let me know if you have any followup questions.

[@ryanmoyer1]

Thank you for the response. Your whole video series is quite helpful. I have my registered agents name in 3c and the registered agents address in section 2. For the cover letter I have my name and phone number in the "contact person," section as it says that won't appear on any documents and is only used for correspondence in creating the LLC. Under that in, "Entity Information," I have only my LLCs name. My question is: Underneath that in the, "Return Address," section. Do I put my name and physical address or do I put my registered agents name and address? Trying to keep my information private once it is filed so I am being very careful with this document. Thank you in advance!

[@llcuniversity]

Hey Ryan, you're welcome. Glad to hear the videos have been helpful! Thanks for the very organized and clearly written question. In the "Return Address" section, you can use whichever you prefer. The state doesn't really care. They just will mail your approval to this address. It can pretty much be filled out any way you like. Now, if you use your Registered Agent's address, just check with them ahead of time to make sure it's cool. They'll need to scan the approval docs to you via email or forward via regular mail. Hope that helps.

[@thesqaanalyst]

I was looking for this answer on this as well. Thanks! Great video series. /thumbs up /subbed

[@llcuniversity]

You're welcome! Thank you :)

[@lunchbox2997]

Great content!! It really helped me out!

[@llcuniversity]

Awesome! You're welcome :)

[@NubletSoup]

Do people with a sole proprietorship LLC have to pay California's annually 800 fee? Also for the address, what if I don't want my personal address being shown to public, can I use a business PO box instead?

[@llcuniversity]

Hi Garman, to correct you're phrasing, it's best to say an LLC taxed as a Sole Proprietorship (which is the default tax status for a single-member LLC). The answer is yes, all LLCs in California need to pay the $800 annual franchise tax. As long as the address doesn't say "PO Box" in it, such as a commercial mail receiving agency, the state seems to be okay with them. You can also hire a Commercial Registered Agent as a few them will let you use their address throughout your filing. The one's we recommend do. You can find more info on our CA LLC guide: www.llcuniversity.com/california-llc/. Hope that helps.

[@11219tt]

You jumped over the differences between "The LLC will be managed by:" Section. Why would someone check "One Manager" vs What you checked?

[@llcuniversity]

You're right. It was an oversight at the time. Apologies for the confusion. We explain the difference here: www.llcuniversity.com/member-managed-llc-or-manager-managed-llc/

[@rachelgiacopuzzi3619]

Hello! Thank you for this helpful info! I have a couple questions. 1. If I want to use a simplified name for everyday business do I need a DBA? For example if my company’s name is Apple Farm, LLC but I just want to use Apple Farm on all my documents/website/sales tags/etc. 2. I will be getting a mailbox at the UPS store so that my business has a street address that is not my home address. Can I use that UPS address on all my filing forms? Articles of Organizations/Statement of Information/Operating Agreement/etc. Thank you for your time.

[@llcuniversity]

Hey Rachel, you're welcome :) Yes, if you want your LLC to do business under a name that is different than it's legal name, you'd want to file a DBA. I think the statute is silent on this part. Meaning, it may not be allowed, but it's not strictly enforced. We have more details here: www.llcuniversity.com/california-llc/forms/

[@adeleidali]

Great instructions, I am preparing to incorporate my LLC, will join a franchising service company, does it require any special applications rather from article of organization and statement of information, I will work under the franchise name does it require DBA application or similar documents. Thank you. Adel

[@llcuniversity]

Hey Adel, thanks! Glad they are helpful :) Just to correct your language, you are not "incorporating" an LLC (you "incorporate" a Corporation). Instead, you "form" an LLC. Hope that helps... just don't want you to confuse your accountant or anything lol ;) It's better to follow our free course here (since there 6 lessons): www.llcuniversity.com/california-llc/. The Articles of Organization will form the LLC, but you may also need a fictitious name (also called a DBA, or doing business as). But please check with your franchisor, as they set that requirement in your franchise agreement. Hope that helps. Let me know if you need anything else!

[@adeleidali]

Thanks a million

[@llcuniversity]

Anytime man!

[@jaysun4069]

For the $800 LLC tax, is that paid every year on the day you initially paid the first time or is it at the beginning of the year after that? So if i file now (june), will i have to pay it again in january?

[@llcuniversity]

Hey Jason, for most LLCs, it's either due March 15 or April 15 every year (except for the 1st year's payment). The first year's payment can be a bit tricky to figure out the due. However, we've explained it all here: www.llcuniversity.com/california-llc/annual-llc-tax/. Hope that helps!

[@feroze4050]

Hi there, just wanted to know when do we have to input details regarding the LLC to be taxed as a C-Corp, S-Corp or partnership. In other words, at what stage of the companys incorporation do we usually be asked to fill in those details. Also, am i allowed to put my registered agents address under business addresses section in LLC-1 form. Thank you.

[@llcuniversity]

Hi Feroze, check with your Registered Agent to see if they allow it (a handful of companies do). By default, the LLC will be taxed by the IRS in its default status. This occurs when you obtain your LLC's EIN and tell the IRS how many Members (owners) there are. Meaning, a Single-Member LLC is taxed like a Sole Proprietorship and a Multi-Member LLC is taxed like a Partnership. If you want to change that, you have to file a form with the IRS to make that election. You'd file Form 2553 to have your LLC taxed as an S-Corp (www.llcuniversity.com/irs/llc-taxed-as-s-corp-form-2553/). You'd file Form 8832 to have your LLC taxed as a C-Corp (www.llcuniversity.com/irs/llc-taxed-as-c-corp/).

[@AnthonyHafciojoni]

Thank you for one of the most awesome helpful tips on the subject. Bravo!! Salute ~

[@llcuniversity]

Tony, you're welcome man! Thanks for the awesome comment!

[@Jerrybtg]

What if I wanted to start my business now? Could i possibly register as a sole proprietorship and then register as an LLC once the new year comes around to avoid the double $800 fee?

[@llcuniversity]

Hey Jerry, we have a full article on how to avoid back-to-back $800 payments here: www.llcuniversity.com/california-llc/avoid-back-to-back-annual-franchise-tax-payments/. Hope that helps.

[@CoralEuphoria]

So if, for example, I want to use my sister who lives in Virginia, as the registered agent, her address will be pubic record?

[@llcuniversity]

Hi Coral, any information listed in the Articles of Organization is public record. And if your CA LLC's Registered Agent will a person, that person has to be a resident of California. Hope that helps.

[@Cenomercy]

Thank you so much

[@llcuniversity]

You're welcome Hector.

[@johnnyvalzjohn2085]

Question: if i am the only person managing this LLC would I just put one manager instead of all limited members?? Would it make a difference if I chose that one rather than all limited??

[@llcuniversity]

Check out this article on Member-managed vs Manager-managed: www.llcuniversity.com/member-managed-llc-or-manager-managed-llc/. If your LLC will be Member-managed, check off "All LLC Members". If your LLC will be Manager-managed, check off "One Manager" or "More than one Manager". Hope that helps!

[@tooshay7396]

too bad it doesn't have an online, e-sign option for efficiency eh? What about doing a sole proprietor along WITH an FR-500 form (all on line)? You see benefits with that? then adding a trust afterwards to secure the human individual's exposure? Also you mentioned a fee that gave 90 days to pay. .but this was $70 w/the submitted form. Please clarify. On the EIN# application, how will they know if the LLC was approved or not? We receive a # with LLC approval? thx

[@llcuniversity]

CA actually has online filing now. We'll be updating our site with the new instructions very soon. We're not familiar with FR-500. Wait for your LLC to be approved and then apply for the EIN. The IRS doesn't check to make sure the LLC was approved. Which is why you want to wait on the EIN application until the LLC is approved (so the EIN is "attached" to the correct LLC name). Hope that helps.

[@tooshay7396]

@LLC university what's the online website/link to do that. That would be helpful. What about setting up the TRUST first, then LLC online, then 98EIN #, right or did you do the trust after, you recommending & using the 1041 forms at tax time? PUBLIC or PRIVATE?

[@llcuniversity]

If you want your LLC to be owned by your trust, then yes, you'd set up your trust first and the trust would be the member of the LLC. The CA online filing can be found here: www.sos.ca.gov/business-programs/bizfile/file-online/

[@calmuzacc]

Thank you!!!

[@llcuniversity]

You're welcome Jonathan!

[@enerilove1]

Does one NEED an LLC for ANY business in California? For example...a small fruit cart or hotdog cart?

[@llcuniversity]

It's certainly a personal choice. No person or business if forced to form an LLC. You can operate as a Sole Proprietorship if you'd like. If you're interested in learning more about liability protection and LLC vs Sole Proprietorship, we have that info here: www.llcuniversity.com/llc-vs-sole-proprietorship-vs-corporation/

[@enerilove1]

LLC University I appreciate your reply and information. One more question, As a "Sole Proprietor" may I still obtain an EIN number? Or do I need an LLC to have one?

[@llcuniversity]

Yes, Sole Proprietors can obtain an EIN. An LLC is not required. Hope that helps.

[@DrBerns]

Does the Registered Agent need to have a California Driver's license with the confirmed address? Or just an address to receive mail?

[@llcuniversity]

Great question Bernardo. As per Section 17701.13 of the California Corporate Code (which applies to LLCs), if an LLC's Registered Agent is an individual person, that person must be a resident of the state. A resident of the state would therefore have a California driver's license. Hope that helps.

[@olliev.a7776]

what should i put in entity number in the part of mail submission?

[@llcuniversity]

Hi Ollie, that will be left blank. Please see this page on our website for the most up-to-date instructions: www.llcuniversity.com/california-llc/forms/. Hope that helps.

[@francisyu2869]

What if I received the approval then failed to pay the $800 after four months?

[@llcuniversity]

Hey Francis, you can call the CA Franchise Tax Board and check the amount due, then pay along with any late fees (if they've been assessed). Hope that helps.

[@rancidx3]

I registered online filing an articles of organization for llc-1. Do I still need to make a name reservation?

[@llcuniversity]

Nope, an LLC name reservation isn't required (and rarely needed). You're good on the LLC Name and Articles of Organization step :-)

[@tmohammad829]

LLC University hi do we need to file a fictitious. Business statement

[@sherielshropshire6982]

Dose this LLC work for a freight broker. Even tho I'll be in California I'll be doing business out side of the state as well will this work for me... please advise thank you...

[@llcuniversity]

Hi Sheriel, yes, a CA LLC will work for freight brokers as well. An LLC doesn't limit you to where your customers can be located. Hope that helps.

[@BossChronicles]

LLC good For Real estate investing ?

[@llcuniversity]

Yes, LLCs are the most common entity setup for real estate investing. We have a few videos on our channel about real estate. Hope they're helpful.

[@cargomovers2968]

www.karladennis.com is all you need. Look at some of her KZbin videos before you call her. Her tax code knowledge is on another level. She especially loves talking about real estate investing.

[@staygreezy107]

Can someone explain the 800$ fee? Every 4 months I have to pay the fee?

[@llcuniversity]

It's due once per year by April 15th. The only quirk is figuring out when the first year's payment is due. What date was your LLC approved? You can find it on your Articles of Organization or by searching on the CA SOS website. Also some more details are here: www.llcuniversity.com/california-llc/annual-llc-tax/

[@jermaine6005]

I am confused on what the Entity Information is on the Mail Cover Sheet

[@llcuniversity]

Hi Jay, enter your name and phone at the first three lines. Under Entity Information, after "Name", enter the full name of your LLC. Leave "Entity Number" blank. Leave "Comments" blank. Enter your return address at the bottom. Leave the "Company" line blank. Hope that helps!

[@somersoltgymnastics]

how do I end, discontinue my LLC from California?

[@llcuniversity]

You can dissolve your California LLC online with the CA Secretary of State on their BizFile website.

[@TheDJBadluck369]

I have a dumb question how do i fill out the mail submission cover sheet?

[@llcuniversity]

We have those instructions here: www.llcuniversity.com/california-llc/forms/. Hope that helps!

[@luispinto9026]

Hey on the link for the articles of organization they have added a cover letter. Could you help me go through it? under Entity information it has Contact Person, which is simple below it has a Entity Information section that has Name:(im guessing this is the name of the LLC). Entity Number (if applicable) and Comments:. Any recommendations on comments?

[@llcuniversity]

Hey Luis, here are instructions on how to complete the Mail Submission Cover Sheet. Put your name and phone in the "Contact Person" section. Next, in the "Entity Information" section, enter your full LLC name after "Name". Leave "Entity Number" blank (since it doesn't exist yet). Leave "Comments" blank. At the bottom, in the "Return Address" section, enter your name, leave "Company" blank, and then enter the mailing address where you'd like your approved LLC Articles of Organization to be returned. Hope that helps!

[@luispinto9026]

thank you so much!!!

[@llcuniversity]

You're welcome Luis!

[@mixumup1]

Can you submit this form online?

[@llcuniversity]

Yes, you can. You can file it online via BizFile. We have instructions here: www.llcuniversity.com/california-llc/forms/. Hope that helps.

[@gfam777]

How do I find a commercial registered agent

[@llcuniversity]

All that can be found here: www.llcuniversity.com/california-llc/registered-agent/

[@BriceRivera]

800$ tax??! what if the newly formed business hasn't had any income yet?

[@llcuniversity]

Hey Brice, it doesn't matter. CA imposes the $800 Annual Franchise Tax, regardless of income or activity. Also, I recommend waiting until January 1st before forming your LLC to avoid back-to-back $800 payments being due. In short, if you form an LLC in 2016, you owe an $800 payment for that year. Then you owe 2017 payment of $800 by April. Also, it's best to follow our course on the website. It's easier: www.llcuniversity.com/california-llc/ (lessons in sidebar). I'm heading off to sleep... will check for any replies in the a.m. Thanks :)

[@Gonthor1000]

Wow, didn't realize it was that easy lol

[@llcuniversity]

Yup ;) We have an even easier layout here: www.llcuniversity.com/california-llc/. Hope that helps.

[@tooshay7396]

@LLC university kind of CRUCIAL don't cha think?

[@llcuniversity]

There is a lot of complexity in what you're referring to. It's best to discuss with a legal and tax advisor. There isn't a general black and white answer if people should be owning their LLC with a trust or as themselves. Thank you for your understanding.

[@rajanatarajan1678]

I have LLC from New Jersey.. Can I still apply for contracts in California? ..Without California physical address? .. or do I still need California LLC along with New Jersey LLC,..I have CAGE and UEI registered in SAM.gov..Thanks..

[@llcuniversity]

Yes, you can still apply fo contracts in California without your LLC being foreign qualified there. If you begin doing lots of work in California (aka "transacting business"), then I would foreign-qualify your NJ LLC there.