State of California

Advantages to register an LLC in California

The main advantages of incorporating in California are lawsuit protection, credibility, tax savings, deductible employee benefits, anonymity, and the simplicity of raising capital. By creating a separate legal entity for personal protection purposes, a California corporation has a broad range of powers beyond that of the standard sole proprietorship such as small claims court benefits, separate liability for corporate debts, and best of all perpetual duration. When you incorporate in California you create a separate legal individual.

If you register company California LLC you will receive protection from personal liability for things like lawsuits and other financial claims against the company. In an LLC, you do not issue stocks to raise funds or revenue for capital investment. Instead, members are issued interest certificates that reflect the amount or share of their investment in the company. An LLC is run by the members, and the power vested in these members is determined by the percentage of ownership. You can register an LLC by filing with the office of the Secretary of State. In most cases, this process is simple and takes as little as a couple of days to complete. It’s a good idea to consult with an attorney or other financial adviser before filing for this status. You may want to weigh the alternatives to determine which business structure meets the needs of your business, your customers and your partners.

Register company California LLC

Here are the main advantages to register in California:

No requirement of an annual general meeting for shareholders.

No loss of power to a board of directors.

Much less administrative paperwork and recordkeeping than a corporation.

Pass-through taxation (i.e., no double taxation), unless the LLC elects to be taxed as a corporation.
Limited liability, meaning that the owners of the LLC, called “members,” are protected from some liability for acts and debts of the LLC, but are still responsible for any debts beyond the fiscal capacity of the entity.
Using default tax classification, profits are taxed personally at the member level, not at the LLC level.
An LLC can elect to be taxed as a sole proprietor, partnership, S corporation or C corporation, providing much flexibility.
LLCs in California can be set up with just one natural person involved.
Unless the LLC has chosen to be taxed as a corporation, the income of the LLC generally retains its character, for instance as capital gains or as foreign-sourced income, in the hands of the members.

Company formation in California

California remains one of our most popular states for incorporation and LLC formation. With the largest population in the United States, California has a thriving business community. Some of the largest U.S. companies, including Countrywide Financial and Apple, maintain their headquarters in California. This state also services many small businesses, particularly in major industries like entertainment, agriculture, and technology.
If you want to incorporate or form an LLC in California, we can help you form your new company with the California Secretary of State.

Incorporating LLC in California

Incorporation in California is a fairly easy process but the number of legal issues to consider can make the execution of each stage in the process extremely complex.

Every business owner should incorporate their business, since there are more advantages then drawbacks. Incorporating your company is certainly a good answer to protect yourself from those business lawsuits that come around so often. Another problem most of the California businessmen generally experience is ever-increasing taxes. The majority of new businesses seeking liability protection organize as corporations, but limited liability companies (LLCs) are gaining favor. Real estate companies and investment funds are more likely to form as LLCs or limited partnerships, than as corporations. Some other companies elect to become LLCs because the corporate governance is easier. The downside to LLC’s is that they are a rather new concept (sort of a hybrid between partnerships and corporations). Because of their relative newness sometimes the legal uncertainties involving them can be a serious disadvantage. We can help you decide the most appropriate legal structure for your business.

Registering LLC in California

Form an LLC in California

A Limited Liability Company (LLC) combines the tax flexibility of a partnership with the limited liability of a corporation. Our customers form LLCs more often than corporations, typically to protect their personal assets and avoid the “double taxation” of a corporation on shareholder dividends. Each member (owner) of an LLC reports their share of profit and loss in the company on their individual tax return.

A California Limited Liability Company (LLC) is a legal form of Business Company offering limited liability to its owners. It is similar to a corporation, and is often a more flexible form of ownership, especially suitable for smaller companies with a limited number of owners. Unlike a regular corporation, a limited liability corporation with one member may be treated as a disregarded entity, so the member is often singled-out as a person performing the actions of the LLC.

A California Limited Liability corporation with multiple members may choose, generally at the time that the new entity applies for a EIN number, to be treated for U.S. federal taxation purposes as a partnership, as a C Corporation, or as an S Corporation.

California Limited Liability Company combines the best of corporations and partnerships, because the Limited Liability Company offers its members protection from individual liability and, like a limited partnership, allows others to become a member only if the other members unanimously agree.

The California LLC Formation is governed by its regulations called an operating agreement. Limited Liability Company (LLC) regulations are a hybrid between corporate bylaws and a partnership agreement. The California Limited Liability Company is further distinguished from the corporation in that it is not generally required to have annual meetings unless otherwise stated in the operating agreement.

Owners are called members not partners or shareholders.
Number of members are unlimited and may be individuals, corporations, or other LLC’s.
The principals of LLCs use many different titles – e.g., member, manager, managing member, managing director, chief executive officer, president, partner. As such, it can be difficult to determine who actually has the authority to enter into a contract on the LLC’s behalf.

Annual franchise

A limited liability company may be classified as an association taxable as either a C corporation or an S corporation. California and federal laws treat these limited liability companies as corporations subject to all corporation tax laws. Limited liability companies classified as C corporations must file Form 100, California Corporation Franchise or Income Tax Return. If they are classified as an S corporation they must file Form 100S, California S Corporation Franchise or Income Tax Return.

LLC’s classified as partnerships or disregarded entities are subject to an $800 annual tax if they are doing business in California, or the California Secretary of State accepts their articles of organization or certificate of registration. The annual tax is pre-paid for the privilege of doing business in California and is due on the 15th day of the fourth month after the beginning of the taxable year.

Our California LLC package

Our California Limited Liability Company (LLC) package includes:
  • Preliminary name check & reservation of your business name;
  • Preparation and filing of your Articles of Organization for a California LLC;
  • Statement of Information for the filed California LLC;
  • Certificate of Status (good standing);
  • LLC Operating Agreement;
  • Documents filed in 5 to 8 business days.

Name reservation

As part of the California LLC package deal, you will receive one (1) original California LLC Name Reservation from the Secretary of State which will be good for 60 days.

Articles of Organization

We will draft and file your Articles of Organization with the Secretary of State. Upon approval from the Secretary of State, you will receive one (1) certified stamped copy of your Articles of Incorporation which is required for forming a California LLC.

Statement of information

We will file your Statement of Information for your California LLC with the Secretary of State, then we will forward you a copy of proof of the filing.

Certificate of status (good standing)

You will receive one (1) Certificate of Status (good standing) from the Secretary of State which will state that on this day that your corporation was in good standing with the Secretary of State.

Our company licensing services

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Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.

TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!

Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.

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