A California LLC (Limited Liability Company) protects your personal assets from business debts, offers flexible tax treatment, and gives you professional credibility. It is the most popular legal structure for small businesses in California — and the easiest to form if you have the right documents. Prepare your LLC, bilingual, without an attorney, from $299.
Anyone who: operates a business in California (including freelancers or consultants), generates over $50,000 a year in business income, has clients or employees who could sue them, owns personal assets they want to protect (home, savings), wants to deduct more business expenses on taxes, or wants to project more professionalism to clients and banks. An LLC separates YOUR personal assets from the company's — if the business is sued or has debts, generally only the business assets are at risk, not your home or personal savings.
California charges a minimum $800 Annual Franchise Tax on every LLC, regardless of revenue. LLCs with gross income over $250,000 pay an additional fee. Every LLC must file a Statement of Information every 2 years with the Secretary of State and maintain an Operating Agreement (California does not require filing it, but does require having it). California also requires a Registered Agent with a physical California address — not a P.O. Box.
Government cost: $70 for Articles of Organization + $20 Statement of Information + $800 Annual Franchise Tax = $890 minimum first year. Our service charges $299 to prepare ALL documents. An attorney would charge $1,500-$3,000.
Yes. California's Annual Franchise Tax is MANDATORY to keep the LLC active, even with no income. LLCs formed after January 1, 2021 have the first $800 EXEMPT in year one.
LLC is simpler and more flexible to start. S-Corp can save on taxes when you already generate over $80,000-$100,000 a year in net profit. Start with LLC and consider converting to S-Corp later.
We recommend yes. Without an EIN, you would use your personal SSN for bank accounts and vendors — dangerous for identity. EIN is free from the IRS and our package includes the application.
Yes, but if you will operate in California, you must register as a Foreign LLC. If you live in California, form it as a California LLC. If you live outside and operate outside but want California protection, consider an LLC in Nevada or Wyoming first.
Multi Servicios 360 | www.multiservicios360.net | 855.246.7274
Multi Servicios 360 is not a law firm and does not provide legal advice. This is a self-help document preparation platform. State fees and attorney fees are separate.