If there’s a form or resource with the information I need, please direct me to it!
I’m planning to start a service business in California and want to ensure I set everything up correctly.
My business will be an LLC offering virtual services to clients until I generate enough recurring revenue to secure an office space, likely in 1-2 years.
To create the business, do I simply fill out the form on the Secretary of State website and pay the $70 fee? After that, are there other agencies I need to file with? Will I receive a business ID to take to a bank for a business credit card?
Thank you, and I appreciate any information you can provide!
Starting a service business in California is an excellent start! To establish an LLC, you must file an online form with the Secretary of State, which costs $70. You will also need to register with the Franchise Tax Board for taxes. Obtaining a federal tax ID number is beneficial for creating a business bank account and is not required but encouraged. Finally, while it is not needed, having a separate business bank account might help you stay organised with your finances. The SBA provides useful materials online to take you through the LLC formation process. However, if you have any specific questions, you should always consult with a lawyer or accountant.
Keep track of your income and expenses with a separate bank account and credit cards. If you’re taking draws, transfer the cash to yourself.
Commingling funds between yourself and your LLC is a simple way to get your LLC’s veil breached in a lawsuit, and it also makes filing taxes much more complicated.
Just a follow-up. Apparently, since it was not for the sale of any products, I merely needed a tax certificate. The technique is rather straightforward. Does anyone else have any suggestions? What exactly is considered tax deductible? Are all fees connected with forming an LLC deductible? (Annual renewal or anything that can help) How likely is it for a fledgling company to receive a loan from the SBA?
Hi, I am just following up. Were you able to incorporate as a consultant? I was told that California does not allow consulting LLCs and should instead operate as a sole proprietor.