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How do you form an LLC?

As a California business owner, you may have decided that organizing your company as an LLC is the best option for you. But what happens next? How do you actually form an LLC once you have made your decision?

According to FindLaw, most states require you to follow a four step plan in order to form an LLC. In some states, it’s even fewer steps. First, you must choose a business name. This name cannot already be in use by another business. The California state government will be able to let you know if your chosen name does or doesn't fit the standards.

Next, you need to do your paperwork. This paperwork, known as the "Articles of Organization", must be completed and filed. Additionally, there is a fee associated with the paperwork that you must pay off before it is organized.

An operating agreement is next. This will lay out the responsibilities, rights, and duties of any member of the LLC. In essence, it acts as the blueprint for how your LLC will be run in the future.

Finally, some states also require you to publish a notice to the public via a local paper or something similar, letting people know that you intend to form a new LLC. This then makes the business "official", but is not required everywhere.

If you are currently going through your business journey, consider contacting an attorney for more information. They can help you choose how to organize your business and help you through the steps that follow.

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Lawrence R. Jensen & Associates
95 S. Market St.
Ste. 550
San Jose, CA 95113

Phone: 408-465-0293
Fax: 408-899-2403
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