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When you start your LLC with Nearside Sprout, you’ll pay $29/month for everything you need to launch your business. This includes your LLC preparation and filing, registered agent service, and EIN. Per California state law, you’ll also have to pay an $800 franchise tax within the 15th day of the 4 month (i.e. ~3.5 months) after your LLC is approved.

The process can vary depending on many factors (name availability, delays with the California Secretary of State, etc., but on average we can help you get up and running with your new LLC within 7-21 business days.

California charges an annual franchise tax fee of $800 on every LLC. This is due by all California LLCs, regardless of business activity. This is a prepaid tax, so you pay for the current year. This tax is due every year, even if you are not conducting business, until you cancel your LLC.

You pay the $800 LLC franchise tax fee via Form 3522 (“The LLC Tax Voucher”). Ask one of our Nearside specialists for the form for easy access and payment.

You will have to pay the $800 annual franchise tax within the first 12 months you file your LLC. Your franchise tax will be due on the 15th day of the 4th month from the date you file your LLC with the Secretary of State. After that, your franchise tax will be due on April 15th every year.

The penalty for failing to pay the $800 tax by the deadline will result in late fees and the state of California may dissolve your LLC if it remains unpaid.

Nearside does not cover annual franchise tax. We do, however, cover your LLC filing California state fee of $75.

Starting an LLC offers a number of benefits in any state, including California. Some of these benefits include:

• Limited liability protection: As an LLC owner, you are protected from personal liability for any legal claims made against your company.
• Tax flexibility: LLCs offer the flexibility to be taxed as a sole proprietorship, S Corporation or C Corporation, based on your preferences.

Flexible management structure: Unlike corporations, which are subject to strict management laws, LLCs can lay out their own management structure in the company’s operating agreement.

If you choose to file your LLC by yourself, you will have to follow a number of steps, including:

1. Choosing a business name: You will have to check whether your chosen business name has already been registered, using the California state government’s name search tool.
2. Filing articles of organization: You can choose to file your articles of organization online or by mail; the filing fee is $75 in California.
3. Choosing a registered agent: Most of the time, it does not make sense to act as your own registered agent. If that is the case for your business, you will need to find a registered agent service.
4. Prepare an operating agreement: While an operating agreement is not required by the state of California, it is highly advisable. Your operating agreement lays out the financial and working structure of your business.
5. File a biennial report: Every LLC in California must file a Statement of Information, Form LLC-12 within 90 days of filing articles of organization. After that, the report must be filed every two years. 
6. Pay business taxes: All LLCs in California are subject to franchise tax, unless they have elected to be taxed as a corporation.‍
7. Obtain necessary business licenses and permits: As an LLC owner you will also likely need an IRS Employer Identification Number (EIN). Also, depending on your particular business, certain licenses may be required.

If your LLC has more than one owner, or member, you will need to get an Employer Identification Number (EIN) even if you have no employees. If you have a single-member LLC, you will only need an EIN number if you hire employees. 

However, even if you are a single-member LLC owner with no employees, an EIN number is free and offers a number of advantages, including separating your Social Security Number (SSN) from your business for tax and banking purposes.