California LLC Formation Checklist

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Below is a checklist to help guide you through the process of forming an LLC in California. Click here to download an LLC Formation Checklist pdf that is substantially the same. Many of the items in this checklist have links to help you understand what is involved in each step. Please feel free to contact me if you need guidance at any point along the way.

1. Choose a name and check for availability Your name must end in “Limited Liability Company,” “LLC,” or “L.L.C.” Read article on choosing a name for more details.
2. Prepare and file Articles of Organization (Form LLC-1) My article on filing Articles of Organization has step-by-step instructions for completing Form LLC-1
3. Prepare your LLC’s Operating Agreement This agreement outlines how your LLC will be managed, how profits and losses will be allocated, and other details essential to running your LLC.
4. Prepare membership ledger and membership certificates The ledger should indicate each member’s name, address, amount paid for their membership interest, and the date it was received.
5. Prepare and file a Statement of Information This should be filed after your Operating Agreement has been prepared and executed, but within 90 days of filing the Articles of Organization.
6. Apply for an EIN See my article for step-by-step instructions on completing IRS Form SS-4. If you apply online you will be issued an EIN on the spot.
7. Investment representation letters In some instances you may need Investment Representation Letters, depending on how members are involved with the LLC.
8. Receive spousal consent If any of the members are married, their spouses will need to provide Spousal Consent.
9. File Limited Offering Exemption Notice (LOEN) You may be required to file this notice within 14 days of issuing membership interests.
10, Hold initial meeting of Members During this meeting the LLC will appoint managers and officers. Keep minutes of this and all subsequent meetings.
11. Open a bank account You will typically need an EIN and your Articles of Organization. (Some banks require a certified copy.)
12. Apply for a business license and any permits required The requirements and application process vary from area to area; check with your local jurisdiction.
13. Register with EDD and set up payroll If you pay an employee more then $100, you must register with EDD. I suggest using a payroll service.

Mathew@ojailawyer.com
Phone: 805-669-8877
Fax: 805-646-5990
530 W. Ojai Av. Suite 201
Ojai CA, 93023


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