LLC California Fees: A Breakdown of the Cost
So you have decided to form a business in California. After weighing all the pros and cons, you have realized that a limited liability company (LLC) is the best structure for your business. Now what?
The Process
Creating an LLC in California comes with a process that you should follow. Of course, you should also think about the LLC California fees that the state has set. Follow every step and pay for all the steps to avoid any issues in the future.
· Choose a name for your LLC following state regulations.
· Appoint a registered agent in California.
· File your LLC Articles of Organization with the Secretary of State.
· File an Initial Statement of Information.
· Create an operating agreement.
· Obtain an Employer Identification Number (EIN) or a Federal Employee Identification Number (FEIN).
LLC California Fees
Being the owner of a company comes with responsibilities. Your job starts once you have decided to form an LLC. Thus, you will have to spend some money on the fees that the state has set. Understanding the LLC California fees will help you budget your expenses and prepare for your company’s financial obligations.
· Starting Your LLC
Forming your LLC in California comes with a price. You need to pay for the California LLC fee worth $70 to the Secretary of State for the initial filing and $5 for a certified copy of the said document. If you wish to hurry up the process and complete the application in five business days, you have to pay for an additional fee of $15. You would also have to pay $20 for the Statement of Information, which is a document you need to file within 90 days of forming your LLC.
If you want to reserve a name for your company for a short period before your register, you can do so. File a Name Reservation Request and pay for the $10 fee. This way, you can ensure that no one else can take the name that you want to use before you complete the application process.
California also requires you to designate a registered agent. If you choose to appoint one from outside of your company, you may have to pay the registered agent annually. Check your options and choose the one that best serves your company’s interest.
· Securing Business Licenses
If your LLC requires some specific business licenses in California, you will have to shell out some more money. The usual cost of a small business license ranges from $50 to $100. The price will depend on the type of business you are running and the license that you need.
· Annual Obligations
Your financial obligations do not end once you have established your company. You also have to pay for an annual tax to the California Franchise Tax Board. All LLCs conducting business in California should file the Limited Liability Company Return of Income annually and pay $800. During your starting year, you should pay for this fee three and a half months after forming your LLC. After that, you need to pay for the annual fee every April 15th of the succeeding years.
As a member of the LLC, you will also have to pay self-employment taxes in California. Since California taxes single-owner LLCs the same as sole proprietorships and multiple-owner LLCs as partnerships, the tax fee will depend on the total income your company received from all its worldwide sources. The state will treat the net income that your LLC generates as self-employment income and tax it at around 15%.
Additionally, you will have to file a Biennial Statement of Information or a Statement of No Change every two years during the anniversary month of the formation of your LLC. It comes with a $20 filing fee.
· Other Possible Costs
If you make changes to your LLC, such as your company name or the amendment of your Articles of Organization, you should notify the Secretary of State and submit the appropriate form. Changes usually cost $30. However, the fee may be different for mergers.
Thinking about the process and the fees may seem overwhelming, especially to first-time business owners. If you want to have a smooth transaction and hassle-free experience, you can hire the services of DoMyLLC. Our company will assist you throughout the process and ensure that your LLC will comply with all the regulations the state of California has set. Worry no more about managing LLC California fees because DoMyLLC can help.