ZenBusiness reviews its own products and services and compares them to others in the industry.
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If you’re looking for an excellent California LLC service then choose ZenBusiness. We’ve already formed 700,000+ businesses since 2017!
If you want a socially conscious California LLC service with a service discount, choose ZenBusiness.
Northwest Registered Agent charges $225 (plus state fee) for LLC filing services. That said, Northwest’s personalized customer support is a feature that could make their prices worth paying for some entrepreneurs.
Overall, Northwest does have some points in its favor. However, keep in mind that it charges $225 (plus your state’s required fee) for its LLC filing services.
Want to learn more? See this Northwest LLC review.
LegalZoom is one of the biggest names in the industry, with millions of customers served and frequent advertising efforts. LegalZoom provides an LLC filing package for free (plus the state’s fee).
LegalZoom is a huge company, so while it offers extended support hours, the quality of its customer support may vary a bit from representative to representative.
Want to learn more? See this LegalZoom LLC review.
Incfile/Bizee offers LLC formations for free, as long as you pay your state’s fee. Incfile and ZenBusiness have some similar characteristics, but there are also some significant differences that set the two apart.
If you’re looking for a cheap LLC formation service in California and ZenBusiness doesn’t feel right for some reason, Incfile/Bizee could be worth a closer look.
Want to learn more? See this Incfile/Bizee LLC review.
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*Processing times are based on receiving complete information. ZenBusiness processing times do not include Secretary of State processing times, which can vary.**SPECIAL OFFER – Get Starter for $0 plus state fees. Includes one optional free year of Worry-Free Compliance that renews at $199/yr.† ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.
SunDoc Filings isn’t among the most popular LLC formation services in most states, but its home state of California is an exception. That’s because the SunDoc Filings offices are in Sacramento, and they hand-deliver documents to the Secretary of State’s office three times per day.
This enables SunDoc Filings to form California LLCs faster than any competitor we’re aware of. This company also receives strong customer feedback, with around 3,000 positive reviews and very few examples of negative feedback.
However, SunDoc Filings also has some drawbacks, including pricing. The cheapest package they offer costs $79, but it doesn’t even include the preparation of your Articles of Organization — it only provides document filing. You’ll need to spend at least $99 to have SunDoc Filings prepare and file your documents, while ZenBusiness will do it for free.
There really isn’t much of a reason to use SunDoc Filings in other states, but if you need your California LLC formed in a hurry, they’re worth considering.
Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.
You can read our complete guide to DIY an LLC setup in California, but here’s a quick look at the process:
Every LLC in California needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.
As we’ve mentioned in this guide, every LLC needs an agent who can accept California service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.
This document, once filled out and filed, officially forms your business in the state of California. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. California has a $70 filing fee.
Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:
If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. California has pretty heavy taxes. For LLCs taxed as corporations, there is a flat rate of 8.84%. The individual rate ranges between 1% and 13.3%. You will also need to account for sales taxes (7.25% plus local fees) and other miscellaneous taxes. More information can be found at the California Department of Tax and Fee Administration.
There’s no general state business license in California, but that doesn’t mean you won’t need to get professional licenses. California offers a nearly comprehensive resource for business licensing: CalGold.
Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.
Every other year, your LLC will need to file an annual report to update the state about the standing of your business. California has a $20 filing fee for this document.
Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.
You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).
This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full California LLC Formation Guide.
LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnership vs LLC, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. An LLC may also elect to be taxed like a corporation, although this is not a very common option. For more a more in-depth description see: What is an LLC?
In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a California business. You cannot form an LLC in California without filing the Articles of Organization, the document that officially registers your business within the state. Read more about California costs – California LLC costs.
FAQ's
Where Can I Get More Information About Forming LLCs in California?
We invite you to take a look at our comprehensive guide to forming a limited liability company in California. This article walks you through the LLC formation process in this state step by step, ensuring that you don’t miss any crucial elements.
How Can I Search California’s Business Name Database?
One of the most important steps in forming a California LLC is choosing a business name. Once you come up with ideas for your name, you should do a preliminary search through the state’s business search database to make sure your desired name is available. However, it’s important to note that this tool is unofficial.
Once you’ve verified that your name is available using the business search database, you’ll need to mail a Name Availability Inquiry Letter to make this process official. For more information on conducting a business name search in California, check out California business search on the topic.
Where Can I Find the California Articles of Organization?
You can file your Articles of Organization online through the California Secretary of State’s BizFile tool, or you can print off a paper form and mail it to the Secretary of State’s office.
What Are California’s Ongoing LLC Maintenance Requirements?
All California LLCs are required to file a California statement of information every two years. This filing costs $20, and you can file it online. In addition, each LLC must pay the state’s annual LLC tax with Form 3522, which costs $800 each year.
Where Can I Get Information on Licensing for My California LLC?
To find out which permits and licenses are applicable to your business, head on over to the state’s “CalGold” permit and license website, where you can find extensive information about licensing requirements in this state.
How Quickly Can California Form My LLC?
The California Secretary of State has a handy page on their website where they display current turnaround times for LLC formations in real time. At the time of this writing, online filings were taking around three business days, while in-person filings took five business days.
Do you need your business formed in a hurry? California has a few options, but they’re very expensive. They will form your LLC in 24 hours for $350, four hours for $500, or same day for $750. We will note that to qualify for the four-hour service, your documents must be precleared and approved by the state.
Which Company Provides the Best California Registered Agent Service?
If you want more details about what these companies can offer in this state, or you’d like to take a look at some other options, check out our complete guide to California agent for service.
How Can I Dissolve My California LLC?
Unfortunately, not all businesses last forever. If the time comes when you need to close your LLC’s doors, you’ll need to do so in a manner consistent with the state’s regulations. That’s why we wrote our guide to California LLC dissolutions, so you can complete the process in a compliant manner.
What if I Need to Expand a Business From Another State to California?
If your LLC already exists in another state, you don’t actually need to “form” it in California. Instead, you’ll need to foreign qualify the business in this state. This process is somewhat similar to LLC formation, but there are some crucial differences as well. Take a look at our guide to foreign qualifications in California for more information.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
Written by Team ZenBusiness
ZenBusiness has helped people start, run, and grow over 700,000 dream companies. The editorial team at ZenBusiness has over 20 years of collective small business publishing experience and is composed of business formation experts who are dedicated to empowering and educating entrepreneurs about owning a company.
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