Creating an LLC in California

My business will be selling baby items and we are located in Los Angeles, California.   How do we create a california LLC?

1. Business name  availability.

• Checking the availability of a name for your small business, trademark law and choosing a name.

• California law requires an LLC name to include the suffix "limited liability company" or the abbreviation "LLC" or "L.L.C." as the last words in the name. The words "limited" and "company" may be abbreviated to "Ltd." and "Co." Additionally, your business name may not be the same as, or deceptively similar to, that of any other California LLC or any foreign LLC registered to do business in the state.

• Consider registering a  trademark.

 We resale gently used children clothing and baby items (cribs, babyswings, car seats, strollers, toys, books, etc.).

2. File articles of organization with the Secretary of State.

• Our filing fee is $119

3. Execute an operating agreement.

• California requires an operating agreement in order to form an LLC. See Cal. Corp. Code. § 17050(a). Operating Agreement

4. File a Statement of Information

• Owners of a LLC need to file a LLC Statement of Information

6. Determine  tax  obligations

• Employer Identification Number (EIN)

• If you will be paying at least $100 to an employee or employees in a quarter, you are subject to employment taxes and must register for a California employer account number within 15 days of paying that $100.

• Whenever you hire an employee in California, you must let both the IRS and the State of California know about it.

• If you have any employees in California, you must have workers' compensation insurance.

• California has an $800 minimum franchise tax on LLCs doing business in the state.

7. Open a business bank account

• Always keep your business's finances separate from your personal accounts.

5. Obtain any required local licenses.

• Quiz on what licenses you need when Forming a LLC for details.

Here are the licenses and tax ids you are legally required to obtain before starting a baby items business operations:1. A baby itmes business tax registration license. (Form an LLC Limited Liability Company to protect Your Home and Car) 2. Fictitious Business Name, DBA assumed business name if the baby business has another name.  3.  Since you mentioned you will have employees, you need  a  state sales tax id permit 4. A federal tax id number 5. A state employer tax id number.

$119