How to form a California LLC without a lawyer

#1

Post by feross » Tue, Sep 15, 2020, 11:36 PM UTC

How to form a California LLC without a lawyer
feross.org

Re: How to form a California LLC without a lawyer

#2

Post by flowerlad » Wed, Sep 16, 2020, 1:05 AM UTC

Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.

Re: How to form a California LLC without a lawyer

#3

Post by stillmotion » Wed, Sep 16, 2020, 1:07 AM UTC

flowerlad wrote: post #2

Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.

You still have to pay a minimum of $800 a year to the franchise tax board for operating a non-Californian business.

Re: How to form a California LLC without a lawyer

#4

Post by flowerlad » Wed, Sep 16, 2020, 1:10 AM UTC

It is best to have at least two persons in the LLC. If there is only one owner, then you have less protection as the "veil" can be "pierced". https://www.nolo.com/legal-encyclopedia/piercing-the-limited...

Re: How to form a California LLC without a lawyer

#5

Post by pianoben » Wed, Sep 16, 2020, 1:12 AM UTC

stillmotion wrote: post #3

flowerlad wrote: post #2

Cheaper to register in Delaware. Only $300 per year in LLC tax vs $800.

You still have to pay a minimum of $800 a year to the franchise tax board for operating a non-Californian business.

Word. California always gets its cut. If you're in California, or have customers there, going to other states only increases your potential obligations.

Re: How to form a California LLC without a lawyer

#6

Post by flowerlad » Wed, Sep 16, 2020, 1:12 AM UTC

You may also need a registered agent for "Service of process". Costs $100 per year. Without it you risk default judgement in case of a lawsuit. https://www.legalzoom.com/articles/what-is-an-agent-for-serv...

Re: How to form a California LLC without a lawyer

#7

Post by feross » Wed, Sep 16, 2020, 1:14 AM UTC

pianoben wrote: post #5

stillmotion wrote: post #3

Earlier quoted context omitted.

You still have to pay a minimum of $800 a year to the franchise tax board for operating a non-Californian business.

Word. California always gets its cut. If you're in California, or have customers there, going to other states only increases your potential obligations.

Exactly. Which is why I just recommend forming a California LLC directly if you live in California (like I do).

Re: How to form a California LLC without a lawyer

#8

Post by feross » Wed, Sep 16, 2020, 1:15 AM UTC

flowerlad wrote: post #6

You may also need a registered agent for "Service of process". Costs $100 per year. Without it you risk default judgement in case of a lawsuit. https://www.legalzoom.com/articles/what-is-an-agent-for-serv...

You can just use your personal mailing address and check it for mail.

Re: How to form a California LLC without a lawyer

#9

Post by feross » Wed, Sep 16, 2020, 1:15 AM UTC

flowerlad wrote: post #4

It is best to have at least two persons in the LLC. If there is only one owner, then you have less protection as the "veil" can be "pierced". https://www.nolo.com/legal-encyclopedia/piercing-the-limited...

From the article:

> if you form your small business as an SMLLC, and observe a few basic rules (such as keeping business finances separate from personal finances), you should be personally protected from most kinds of business liability

Single-member LLCs which are run properly still get liability protection.

Re: How to form a California LLC without a lawyer

#10

Post by formercoder » Wed, Sep 16, 2020, 1:19 AM UTC

flowerlad wrote: post #4

It is best to have at least two persons in the LLC. If there is only one owner, then you have less protection as the "veil" can be "pierced". https://www.nolo.com/legal-encyclopedia/piercing-the-limited...

Piercing the veil can occur for many different reasons, including some as simple as improperly kept notes of annual meetings. Consult with a lawyer to be sure every formality is followed.