What is the cheapest way to form an LLC in California?

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Hi everyone,

Starting a business in California and requiring an LLC formation. I have seen a number of posts about how websites like Legal Zoom are scams,
if it would be more convenient, you can refer me there.

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LegalZoom is a well-regarded online legal service that simplifies the LLC formation process. Although there are concerns about the quality of online legal services, LegalZoom has built a reputation as a dependable option.

Advantages of Using LegalZoom:

  • Convenience: Manages most of the paperwork and filing process for you.
  • Step-by-Step Guidance: Offers clear instructions and support throughout the process.
  • Additional Services: Provides optional services such as registered agent representation, operating agreement preparation, and EIN filing.

DIY LLC Formation: If you’re comfortable handling legal paperwork and have the time, forming an LLC yourself can be cost-effective.

Steps for DIY LLC Formation:

  1. Choose a Business Name: Ensure the name is available by conducting a name search.
  2. Appoint a Registered Agent: Designate someone to receive legal documents on behalf of your LLC.
  3. File Articles of Organization: Submit this document to officially establish your LLC.
  4. Create an Operating Agreement: Draft a document outlining how your LLC will be managed.
  5. Obtain an Employer Identification Number (EIN): Acquire this number for tax purposes.

Resources for DIY LLC Formation:

  • California Secretary of State Website: Provides information on LLC formation requirements and necessary forms.
  • Small Business Administration (SBA): Offers general guidance on starting a business.

Making Your Decision: Consider these factors when choosing between LegalZoom and DIY:

  • Time and Effort: LegalZoom can save you time and simplify the process.
  • Cost: Compare LegalZoom’s fees to the potential costs of DIY errors.
  • Complexity: If your LLC has complex legal needs, consulting with an attorney might be beneficial.
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Having started my own business in California, I decided to form an LLC to protect my personal assets and provide a professional structure. Initially, I considered using services like LegalZoom but was concerned about the mixed reviews and potential hidden fees. Instead, I chose to file directly through the California Secretary of State’s website, which was straightforward and cost-effective. The process involved filling out the Articles of Organization form and paying the state filing fee. While it took a bit of research and time, it saved me money and gave me peace of mind knowing everything was done correctly. If you’re comfortable navigating online forms and state websites, I recommend this approach for forming your LLC.

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The cheapest way to form an LLC in California is to file directly with the California Secretary of State’s office online. You’ll need to pay the state filing fee and handle necessary paperwork yourself.