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SpinDistribute.com Article Directory

The following article was published in our article directory on September 3, 2012.
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Costs of Filing for a California LLC

Article Category: Legal

Author Name: John Pena

Putting up a business involves a lot of costs. So before you get involved with forming a California LLC or limited liability company, you have to make sure that you know all the expenses it involves first. This way, you will not be taken by surprise when the time for paying for them comes.

For you to have a better idea about them, here are some of the costs of California incorporation which are commonly paid by new LLC owners.

Costs for name reservation

One of the first things that you must do is the name of your LLC. But you have to make sure that you go with an available name. That means the name of your corporation must be in no way exactly the same as the ones which are already registered.

In California, there are name reservation services which are offered at a price. That means you can reserve a specific name for your LLC even while you are still in the process of preparing other requirements so that no other business can use that name.

Costs for a registered agent

This is mandatory. The state of California requires LLCs to commission the services of a registered agent. He or she will then be the one to receive service process documents as well as the state notices on behalf of the company.

What you must know here though is that there are a couple of factors that may affect the price of the services of the agent. Roughly, the rates are at a hundred dollars to several hundreds of dollars. But if the registered agent you will get is someone who is part of the company, you will not have to pay for anything.

Costs for the articles of organization registration

The articles of organization is the primary document required when you are forming an LLC in California. You must know though that the document filing fee that you will have to pay for the submission of this document can cost you to about approximately a hundred dollars.

Permits, licenses

Of course, you will also have to allot money for the necessary licenses and permits for your company. The price of these requirements will depend on the type of business that you have as well as the exact location of your business.

Costs for filing of additional documents

Last, but not the least, as an LLC you will be required to submit a statement of information. This involves a small fee though. But you must complete this within 90 days after you have submitted the articles of incorporation.

Final note

Although there appears to be a number of things that you have to pay for when forming a California LLC, you must know that putting up this kind of company is actually way cheaper compared to starting up a corporation. At the same time, you must take note of the fact that the rates may vary depending on the State where you want to have your LLC. This is very important if you want to branch out your company.

Keywords: california llc, california incorporation

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