It may be both exhilarating and overwhelming to launch a business. What type of business entity to incorporate will be one of your initial decisions. As a reasonably straightforward and adaptable corporate structure that nevertheless delivers the security of a corporation, limited liability companies (LLCs) are a popular choice among entrepreneurs. However, a frequent query is how long it takes for an LLC to be approved in California.
The short answer is that getting your LLC recognized in California might take anything between a few days and many weeks. How you file your documents and how busy the California Secretary of State’s office is when you file are two factors that will affect the precise timetable.
You can normally anticipate your LLC to be approved within a few days if you file your documentation electronically through the California Secretary of State’s e-filing system. The Secretary of State’s office may need several weeks to process your application if you submit your documents via mail.
It should be noted that the COVID-19 epidemic is now causing substantial delays for the California Secretary of State’s office. Although the office is currently receiving and processing LLC files, there may be a delay in the turnaround time. It is worthwhile to think about submitting online and paying the accelerated processing cost if you need your LLC approved right away.
The California Secretary of State will issue you a Certificate of Organization once your LLC has been approved. This document demonstrates that your LLC is now functioning and has been duly registered with the state.
Using the business search tool provided by the California Secretary of State, you can determine whether your LLC is still in operation in California. To check the status of your LLC, just enter the name or business entity number.
Last but not least, the $800 annual California LLC tax must be paid if you’re founding an LLC there. This payment must be made by the 15th day of the fourth month following the approval of your LLC. For fresh LLCs, there is a caveat, though. You won’t have to pay the tax until the following year if your LLC is approved between January 1 and April 1.
Conclusion: Depending on how you file your papers and how busy the California Secretary of State’s office is at the time of your application, the time it takes to have an LLC approved in California might vary. It is worthwhile to think about submitting online and paying the accelerated processing cost if you need your LLC approved right away. You will receive a Certificate of Organization once your LLC has been approved, and you can use the California Secretary of State’s company search tool to check on its status online. Last but not least, remember to pay the $800 yearly LLC tax to the state, which is due by the 15th day of the fourth month following the approval of your LLC.
For services delivered, an LLC that has paid independent contractors or service providers more than $600 in a tax year may send 1099 forms to them. However, an LLC doesn’t get a 1099 form for itself.
You can use the Business Search feature on the California Secretary of State’s website to look for your California entity ID, or you can ask the Secretary of State’s office for a copy of your articles of incorporation or organization.