State of illinois LLC process in california [From Experts]

Last updated : Aug 21, 2022

How long does it take for LLC to get approved California?

Mail filings: In total, mail filing approvals for California LLCs take 2-3 weeks. This accounts for the 3-5 business day processing time, plus the time your documents are in the mail. Online filings: In total, online filing approvals for California LLCs take 3-5 business days.

Do I need to publish my LLC in California?

In California, all LLCs are required to file a statement of information within 90 days of registering an LLC. This can be filed online, in person, or via mail. The cost is $20. Failure to do so will result in a penalty.

What are the requirements for an LLC in California?

Creating your LLC in California requires two separate filings: Articles of Incorporation, and a Statement of Information. Your Articles of Incorporation form your business in California and the Statement of Information is a periodic filing first required within 90 days of formation.

Does California allow LLC domestication?

You are allowed to change the domicile from any state, but you can only move it into a state that supports domestication. Some of the states that currently support domestication include: Arizona. California.

Do you have to pay the $800 California LLC fee the first year?

Every LLC that is doing business or organized in California must pay an annual tax of $800. This yearly tax will be due, even if you are not conducting business, until you cancel your LLC. You have until the 15th day of the 4th month from the date you file with the SOS to pay your first-year annual tax.

How much does it cost to file an LLC in California?

California LLC Fee The CA LLC fee is $85, payable to the secretary of state. In addition, a California LLC fee is also due for the statement of information, a document that must be submitted within 90 days of LLC formation and carries a filing cost of $20.

Does a California LLC need a California address?

Do I need a business address to start a California LLC or corporation? Yes, you have to list a California business address on your articles of formation or organization. If you don't work out of a commercial building, like an office, shop, or storefront, that's okay.

How does an LLC work in California?

A California LLC is a type of business structure created by state law. Think of an LLC as a “hybrid business structure”. It has the personal liability protection of a Corporation and the pass-through taxation of a Sole Proprietorship.

Which states have LLC publication requirements?

There are only 3 states that require LLCs to publish a notice in the newspaper: Arizona. Nebraska. New York.

How can I avoid $800 franchise tax?

The only way to avoid the annual $800 California franchise fee is to dissolve your company, file a 'final' income tax return with the FTB and to submit the necessary paperwork.

Does an LLC need an EIN in California?

Having an EIN can protect you from identity theft, and you'll need an EIN for other purposes – not just filing taxes. Your California LLC needs an EIN to: Open an LLC business bank account. Obtain business lines of credit or business loans.

Do I need a state tax ID number in California?

If you plan on selling taxable goods and services in the state of California, or if you'll owe excise taxes (which are associated with specific products, like alcohol or tobacco products), you'll need a California state tax ID in addition to your federal tax ID.

Can you transfer LLC from one state to another?

When you move an LLC to another state, you may need to register with state and local taxing authorities. You may also need new business licenses, and you should update your address with everyone you do business with. Moving an LLC to a different state is often a simple process.

Can you convert a Texas LLC to a California LLC?

Business owners who move to California often use California LLC conversion to “bring the business with them” to California. California law allows out-of-state LLCs to become California LLCs using a statutory procedure called conversion.

Does California tax out-of-state LLC?

What if a corporation or a limited liability company (LLC) is formed in another state, like Delaware or Nevada, but does business in California? The out-of-state business entity (a “foreign” business entity) must register with the state, file tax returns, and (most important to the state) pay taxes to California.

Is California waiving the LLC fee?

This waiver will last until June 30, 2023, the end of the state's current fiscal year. Here is the Secretary of State's list of filings for which no filing fee is currently being imposed: Articles of Organization - CA LLC. Registration - Out-of-State LLC.

Who is exempt from California Franchise Tax?

Under California law, taxpayers are exempt from the minimum franchise tax if they did not conduct business in the state during the taxable year and the taxable year was 15 days or less. An entity that qualifies under the 15-day rule does not count that period as its first tax year.

Is the $800 LLC fee deductible for California?

Every year after that, the tax payments are due on the 15th of the fourth month of your tax year — April 15 for most businesses. Plus, California's LLC annual fee is tax deductible for federal taxes. You can deduct the $800 Franchise Tax – and any additional annual fee you pay.

How do I pay the $800 franchise tax?

The state requires corporations to pay either $800 or the corporation's net income multiplied by its applicable corporate tax rate, whichever is larger. You may pay the tax online, by mail, or in person at the California Franchise Tax Board Field Offices.

How much can an LLC write off?

If you have $50,000 or less in startup costs and are in your first year of business, the IRS allows you to deduct $5,000 in startup costs and $5,000 in organization costs from your taxes. If your startup expenses exceed $50,000, the total deduction will be reduced by however much your expenses exceed $50,000.

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hey guys welcome back to the channel so a question that i get all the time is charlie what is the best way to start an llc so in this video i'm going to show you the best easiest and most affordable way to start your llc today this is exactly how i've created my business entities and it's crazy because you guys can literally set up your llc in like five or ten minutes so the first part of the video is me just going over what llc's are and why they may be beneficial to you as an entrepreneur or small business owner the second part is going to be me taking you step by step through inc file which is the website that i use to set up all my business entities so if you do want to skip directly to that part i will put the time code down below right now so without further ado let's get started so firstly what is an llc an llc is a type of business structure that stands for limited liability company it's perfect for startups and entrepreneurs and i always tell people if you want to take your business seriously it may be good to start an llc because there's so many benefits first of all they limit your personal liability what this means is that if your company gets sued they can't come after your personal assets creating an llc also allows you to raise capital from investors and of course they do carry some big tax advantages yeah diving a little bit more deeply into the whole limited liability part if your business does something wrong and they actually get sued by someone then only the assets that are inside that llc are at stake so this means that things like your house your cars and any other personal assets are safe that's where the term limited liability comes from now if you are creating a business and you are looking for outside funding llcs allow you to raise the outside capital and of course llcs can have very specific tax advantages rather than starting a c corporation which actually gets double taxed with an llc this is called a pass-through entity so you're only getting taxed one time now i'm not going to go into too many of the details about the whole taxation of llcs because you can be taxed as an lc or as an s corp but just know that when it comes to this tax stuff i recommend talking to your accountant and figuring out what works best for you yeah for 99 of you guys out there who are starting your own business i'd say an llc or an lc uh taxed as an s corp is going to be right for you it's very easy and affordable to set one up so in the next section i'm going to actually walk you through the whole setup process so i'm here in ink files main page you guys can get to this link by clicking on the link in the description below and what i'm going to do is i'm going to come up here and click start my business so it's going to take us this page where it's going to allow you to actually register your business entities so first i'm going to click entity type and i'm going to select which one i want we're going to be doing an llc and then you're going to select your state of formation so it's going to be a little bit different for each state but most of things are going to be the same i'm in california so i'm going to click on that here it's going to take us to the different i guess plans that they have so you have the silver one which is 75 this is basically completely free because you're only paying the state fee of 75 bucks no matter what you do you will have to pay the state fee so if you do want to you know not pay anything then you guys can choose this one and it's gonna come with pairing and filing the articles of organization it's going to allow you to do unlimited name searches and it's going to give you a free registered agent service for one year now that is not the most popular plan it's actually not the plan that i recommend so when i set up my business entities i always used the gold plan this one is a little bit more comprehensive and it just makes the whole thing a lot lot easier so especially if you're just doing this like this is your first time making a business entity then you know this one's probably going to save you a lot of time and headache so yeah this one is 224 and the package fee is 149 so that's basically what you're paying to inc file to set this up for you and then the state fee is about 75 which you have to pay this one's going to include the same things as the silver except it's going to actually automatically create an ein business tax number for you so that's going to save you some time it's going to file the irs form 2553 it's going to actually give you a bunch of these like documents like the operating agreement the banking resolution all these things are pretty cool to have and they just save you a lot of time so honestly in my opinion i think this one is probably the best for most of you if you're down to do all this stuff by yourself and figure it out then yes you can save that extra 149 package fee but as a business owner you want to focus on on building your business not all this really boring stuff and of course they have their platinum plan this is their most expensive plan but also most comprehensive this one's 374 dollars at the moment and that includes the package fee of 299 dollars and the mandatory 75 dollar state fee this one's going to be just like the gold plan except that you're going to have a little bit more support you're going to have expedited filing and you're going to get that domain name and business email so for this one i'm just going to go ahead and select the gold package because i think that's going to be the right one for a 95 percent of you guys watching this video so it's going to have you enter in your contact information as well as your mailing address so i'm going to do that right now but so after all that is entered in i'm going to click next it's going to process the information and now in the next section it's going to allow you to select your state filing time now the original time it takes for california is around four weeks it might change a little bit for depending on what state you guys are in but they are going to have an expedited filing option that you can add on as well so if i want to just keep the four weeks filing time with the estimated formation date that is right here then i can just select that or if i want the faster five day business filing time i can go ahead and select that so assuming that i don't care too much about the filing time then i'll select that but if you are in a rush then i would go ahead and select the faster one here it's going to allow you to enter in your company information so this is stuff that you'll want to at least brainstorm beforehand so i'm just going to enter in a biz entity prep services just as an example since i'm not actually setting up this llc right now then i'm going to select the designators so you can choose any of these does not matter but i'm just going to select this one and it's going to give you a preview of what your company name will display as so in this case biz entity prep services llc then it's going to have you select your business type or industry so for this one let's just say it's account acc

Thanks for your comment Kay Krohn, have a nice day.
- Tim Chatelain, Staff Member

so today we are talking about how to start an llc in illinois my name is eric and i'm going to give you three methods for starting up your llc the first would be going through your state website which we're going to discuss in detail the second is using online tools to set up your llc and the third is going through an attorney but at the end of this video i'll show you how you can go through an attorney with a free consultation involved so perhaps before you dive off the deep end spending a ton of money with an attorney you can figure out if that's the right fit for your needs also what i'm going to be talking about in this video are important facts on how to make sure that your llc is legit a lot of people overlook these things and if you're not familiar with the terms such as piercing the corporate veil or understanding exactly what a registered agent is and what they do for you then you want to make sure that you watch this entire video to make sure that you're setting up your llc in the proper way so why don't we get started with the state website so here we are on the state website and i've got some good news and bad news for you so some of the good news here is if you look at the state filing fees and we scroll down you'll see that the old filing fee just for your articles of organization was 500 and now it's 150 so the cost of setting up an llc in the state of illinois is actually reduced quite a bit recently so that's great to hear the bad news is i don't think that this website is laid out too great um it's a lot of information and what i have found is other services will walk you through kind of more step-by-step where a state website is just somebody working for the state for the government and they just kind of throw every bit of information at you and then say good luck so what i should mention too is the link here above any link or resource mentioned in this video will be in the description below so if you go to the description anything you could possibly need that was mentioned in this video is going to be mentioned there so what you do is you kind of go through and click file and we're just going to set up a standard llc and then uh this particular junction here i'm just saying yes i kind of meet all these provisions for the llc and then this is where it gets a little bit important here is that if you put in an llc name you want to make sure that it is not taken already so you can see i already have an example here of abc llc what they'll do is they'll search their database here and they'll let you know you know what we've already got these types of llc's with these names here so if the specific one that you're looking for is here then you may want to consider a different name but if it's not you can click i confirm and you can continue through so i just got some dummy information just to get through to the next page and this is where i start to have kind of issues with state websites so in this particular case it's talking about a registered agent registered office it's saying that a limited liability company cannot act as its own registered agent the address of the registered office must be located within the boundaries of illinois and then you know a po box is not acceptable who is your registered agent so i think most people going through this at this point are just going to say you know what it's my friend johnny down the street i'm going to have him be my registered agent he lives in illinois he'll take care of me so the reason why this is an issue is in the case of you being sued by an attorney now the whole reason you set up an llc is to limit your liability and if you're not doing things like this seriously you're not taking this seriously as far as your registered agent you might be opening up yourself to a lot of liability this might be a good point in the video to explain exactly what an llc is and what it is not some people think that an llc is going to create some sort of tax savings for your tax advantage it does not it's simply for limiting your liability what an llc does is you have your business assets and then you have your personal assets your personal assets might be your personal home personal bank account your personal car and the llc creates a division between these two things so what happens is if you are sued an attorney who's suing you is going to try to do something called pierce the corporate veil now that is legal jargon for basically trying to find cracks in your llc to say that your llc is not legit now one of the ways that this kind of happens is if you have issues with your registered agent now if we go to this tool called ink file they explain what a registered agent is so what they do is official letters and correspondence from your secretary of state services of process notices so if you're sued they're going to make sure that you're appearing in court official federal government correspondence information notifications tax forms and requests for payment and request to complete permits company filings or reports so again if you're going through your buddy down the street and he's not sending you these documents not making sure that you're renewing with the state and making sure that you're doing your annual reports you might have a crack in your llc so when you're sued by an attorney they're going to find that crack they're going to be able to pierce the corporate fail and they're going to be able to erase that division between your business and personal assets so what this means is they could potentially come after your personal home your car your personal bank account so that's why it's really important when you're going through these steps is to not just kind of breeze through these types of things and say hey my friend down the street is my registered agent so this particular point in juncture what i'd like to do is talk about why i think that some of the online tools outside of your state website are pretty advantageous probably one of the most popular one is legalzoom the only issue i have with legalzoom is they're kind of the original gangster in this space and that being the case what they can do is they can actually charge you a 79 fee on top of your filing fee so in your particular case the state filing fee is probably going to be around 150 154 but then it's going to be 79 on top of that now the service that i was just showing you is called the ink file i like this service for a couple reasons one of them is their learning center here is super helpful so if you're looking for state filing prices or what we were looking at just a moment ago is about registered agents start a business checklist is great if you're very early on in your business but one of the other things too is they've incorporated over 250 000 businesses since 2004 and your eyeball might have been attracted to this big zero number here so if you launch your business with this service by clicking this button or this button up here what's going to happen is is you'd say i want an llc which you know what 80 of all entities created are llc's so it's a very popular choice and then we go down to illinois it's

Thanks cholingal your participation is very much appreciated
- Tim Chatelain

About the author

Tim Chatelain

I've studied public safety at Stillman College in Tuscaloosa and I am an expert in anatomical pathology. I usually feel mellow. My previous job was casino dealer I held this position for 18 years, I love talking about medical science and arm wrestling. Huge fan of Michelle Obama I practice vault and collect autographed baseballs.