How to Start a Car Wash Business: A Guide to Choosing Your Business Structure
If you’re considering starting a car wash business, one of the key decisions you’ll need to make is choosing your business structure. This will determine your legal and financial responsibilities, as well as your tax obligations. In this guide, we’ll cover the steps involved in starting a car wash business and the two primary business structures to choose from: Limited Liability Company (LLC) and Corporation.
Starting a car wash business can be a great way to provide a valuable service to your community and generate a steady income. However, it’s important to carefully consider the steps involved in starting and running a successful car wash business. One of the key decisions you’ll need to make is choosing your business structure, which will determine your legal and financial responsibilities. Let’s explore the two primary options for car wash businesses: LLC and Corporation.
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Starting a Car Wash Business
Before you can decide on your business structure, you’ll need to take several steps to get your car wash business up and running. Here’s an overview of the process:
Conduct Market Research: Before you start your car wash business, you’ll need to conduct market research to determine demand for your services, as well as your competition.
Develop a Business Plan: A business plan will help you outline your goals, marketing strategy, financial projections, and other important details about your business.
Choose a Location: The location of your car wash business is crucial to its success. Look for a high-traffic area with good visibility and easy access.
Obtain Necessary Permits and Licenses: You’ll need to obtain permits and licenses for construction, zoning and land use, environmental impact, and business registration and licensing.
Purchase Equipment and Supplies: Invest in high-quality equipment and supplies to ensure your car wash business provides excellent service.
Hire and Train Staff: Hire a team that is responsive, friendly, and hardworking, and provide them with thorough training on your equipment, services, and customer service practices.
Choosing Your Business Structure
Once you’ve completed the initial steps of starting a car wash business, it’s time to decide on your business structure. The two primary options are LLC and Corporation. Here’s an overview of each:
Limited Liability Company (LLC): An LLC is a type of business structure that offers limited liability protection to its owners. This means that your personal assets are protected from business debts and liabilities. Additionally, an LLC offers pass-through taxation, which means that profits and losses are reported on your personal tax return rather than a separate business tax return. This can simplify your tax obligations and reduce paperwork.
Corporation: A corporation is a separate legal entity from its owners, which means that it can enter into contracts, own assets, and incur liabilities in its own name. This offers limited liability protection to the owners, similar to an LLC. However, corporations are subject to double taxation, which means that profits are taxed at the corporate level and then again when distributed to shareholders as dividends. This can result in higher tax obligations and more paperwork.
Pros and Cons of LLC and Corporation
Each business structure has its own pros and cons, and the right choice for your car wash business will depend on your unique circumstances. Here are some of the key factors to consider:
Limited Liability Company (LLC): Pros:
Offers limited liability protection to owners
Simplifies tax obligations
Provides flexibility in management and ownership
Cons:
Can be more expensive to form
May not be as familiar to customers or investors as a corporation
Can have less formal structure and governance
Corporation:
Pros:
Offers limited liability protection to owners
Can be easier to raise capital and attract investors
Provides a clear and formal structure for management and governance
Cons:
Subject to double taxation
Requires more paperwork and record-keeping
Can be more expensive to form
Choosing the Right Business Structure
When choosing the right business structure for your car wash business, it’s important to consider your goals, financial situation, and long-term plans. Here are some key factors to keep in mind:
Liability Protection: If you’re concerned about protecting your personal assets from business debts and liabilities, an LLC or corporation may be the right choice for you.
Tax Obligations: If you want to simplify your tax obligations and report profits and losses on your personal tax return, an LLC may be the right choice. However, if you plan to reinvest profits into the business and avoid distributing dividends, a corporation may be a better option.
Management and Governance: If you want a more flexible and informal structure for managing and governing your business, an LLC may be a better fit. However, if you want a clear and formal structure with defined roles and responsibilities, a corporation may be a better option.
Forming Your LLC or Corporation
Once you’ve decided on the right business structure for your car wash business, you’ll need to take steps to form your LLC or corporation. Here’s an overview of the process:
Choose a name for your corporation and check its availability with your state’s business registration office.
File Articles of Incorporation with your state’s business registration office and pay any necessary fees.
Create Bylaws that outline the governance and management structure of your corporation.
Issue stock to shareholders and obtain any necessary licenses and permits for your business.
Frequently Asked Questions
Q: Can I change my business structure after forming my LLC or corporation? A: Yes, you can typically change your business structure by filing the necessary paperwork with your state’s business registration office. However, there may be fees and other requirements involved, so it’s important to carefully consider the implications before making a change.
Q: Do I need to hire a lawyer to form my LLC or corporation? A: While you can technically form an LLC or corporation on your own, it’s often a good idea to consult with a lawyer to ensure that you’re following all necessary legal requirements and protecting your personal assets.
Q: How much does it cost to form an LLC or corporation? A: The cost of forming an LLC or corporation can vary depending on your state and the complexity of your business structure. Expect to pay several hundred dollars in filing fees and other expenses.
Conclusion
Starting a car wash business can be a rewarding and profitable venture, but it’s important to carefully consider the steps involved in getting started, including choosing the right business structure. Whether you opt for an LLC or corporation, be sure to consult with legal and financial professionals to ensure that you’re making the right decisions for your business. By taking the time to plan and execute your business strategy effectively, you can build a successful car wash business that provides valuable services to your
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California business that are registered with the Sacramento Secretary of State are assigned an entity number.
Here is information that was obtained from the California Secretary of State‘s Website. Navigate to the Business Search database on the California secretary of state’s website
The entity number is the identification number issued to the entity by the California Secretary of State at the time the entity formed, qualified, registered or converted in California.
If searching for a corporation by entity number, the letter “C” must be entered followed by the applicable seven-digit entity number.Example: Searching for C0254285 will return X,Y,Z CORPORATION. Searching for 0254285 will return no results.
If searching for a limited liability company or limited partnership by entity number, enter only the applicable 12-digit entity number.Example: Searching for 200100410071 will return RESEARCH & RETRIEVAL, LLC. Searching for 0100410071 will return no results.
We offer you and your business a real brick and mortar business address that’s not a post office box number. We notify you when you have mail and optionally open your mail, scan your mail and email or fax you the contents. Upon request we will also forward your mail or shred it. Rates start at just $50/month. We look forward to being your Sacramento, CA mail service. California LLC expedited filing.
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Welcome to bizfile California, the Secretary of State’s new online portal to help businesses file, search, and order business records. Whether you are filing a financing statement pursuant to the Uniform Commercial Code (UCC), searching for a corporation (Corp), limited liability company (LLC), limited partnership (LP) filing or looking for an immigration consultant, this hub consolidates all your online filing and search needs.
Did you file your LLC via Bizfile California?
Are you still waiting on your documents?
Do you want to get your documents tomorrow?
You can upgrade your online bizfile to expedited filing.
Located in Sacramento. We provide filing services to the California Secretary of State
1500 11th street 3rd floor Sacramento, CA 95814
Guaranteed Same Day Expedite Drop Off
We will deliver your prepared documents by hand to the correct location within the Secretary of State’s Office.
Just provide us a copy of your prepared documents along with payment of our fee and the fees payable to the Secretary of State. We will file your documents in person. The Secretary of State will process your documents within 24 hours. We will pick up your documents the next business day and email you a copy.
The fees your paid online with bizfile will be refunded at a later date.
The California Secretary of State fees to register a LLC is $70 registration fee, $5 certified copy, $350 24 hour expedited filing fee. Our fees to file your document is additional.
The CA SOS expedited filing service is there to help people who need a fast response to their company filings. The standard service takes 10 to 15 days on average to give a response and this is not always good enough for people. The expedited service gives a response within as little as four hours depending on the service that you choose.
To use the CA SOS expedited filing service, the documents must be submitted at the Sacramento secretary of state office. The other local offices such as the one in Los Angeles do not offer the expedited service, and nor do they do the preapproval checks. The Sacramento office is open on weekdays between 8 AM and 5 PM and accepts in-person submissions. If you have pre-approved documents you can pay for the Class A expedited filing service and get a response within four hours.
If you have not had your documents pre-approved and you still need a same-day response, then you must make sure that your documents are received for filing by 9.30 AM, for a response by 4PM. If you miss that cutoff, then the 24 hour service is an option. This service means that if you submit at 1 PM on a Thursday, you will get a response by 1 PM on Friday. The office is not open on weekends or during state holidays.
You must include all of the required documents and payments for your application to get processed. Be aware that the fee will still be retained even if your application is declined, so it is vital that you get everything done correctly. It is worth paying for the pre-approval service if you have time for it to be processed, because it will help to avoid your application being turned down for easily avoidable reasons.
Upon the filing of any document pursuant to any provision of the California Corporations Code for which there is a filing fee of twenty-five dollars ($25.00) or more, at the time of filing the California Secretary of State shall provide an
uncertified copy without charge. (California Government Code section 12185.)
The California Secretary of State’s Filing Fees are determined by the type of filing.
Our firm is near the California Secretary of State located at 1500 11th street 3rd floor Sacramento, CA 95814. We help people just like you deliver and file your documents with the Sacramento Secretary of State.
Routine Business Filing Services – $250 + State Fees. Your documents will be delivered by hand to the Sacramento Secretary of State’s office within 5 business days. The Secretary of State will mail you your business filing documents. We offer the following business filing services:
Routine Business Filing Services – $450 + State Fees. Your documents will be delivered by hand to the Sacramento Secretary of State’s office on an expedited bases. This is usually the same day as documents and payment are received. If not the same day, it will be filed the next business day. Your filed documents will be picked up from the Secretary of State’s office 24 hours after being filed. Our office will email you a copy of your filed documents and mail you the original filed document.
The following is an example of the fees needed to register a foreign corporation with 24 hour Business Filing Service in California.
Statement and Designation by Foreign Corporation (qualification of a foreign stock corporation) – $105 + State Fees
Class C Service – 24 hour response time – $350.00 (Secretary of State Fee – Non-Refundable)
Expedited Business Filing Service (our fee) – $450 + State Fees
Total: $905.00
Your documents will be ready 24 hours after filed with the Sacramento Secretary of State. The Class C Fee (Expedited) is non-refundable if the Secretary of State rejects your documents. Our 24 hour business filing service fee is also non refundable if the documents are rejected by the Secretary of State.
Your documents are normally filed the same day received. Once your documents, instructions and payment are received, your documents will be hand delivered to the Sacramento Secretary of State. Your documents will be picked up from the Secretary of State if you ordered 24 hour business filing service and same day business filing services. The Secretary of State will mail you your documents if you ordered routine business filing service.
How To Order Expedited Filing Services?
Email your prepared Articles of Organization and instructions to fastsosfiling@gmail.com or fax to (916) 244-2636. Instructions should include type of service: Routine Business Filing Services – $250 + State Expedited Business Filing Services – $450 + State Fees.
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California Corporations
Articles of Incorporation (providing for shares) – $100.00
Articles of Incorporation (providing for shares and containing a statement of conversion): California stock corporation converted from a California limited liability company, California limited partnership, California general partnership or a foreign entity – $150.00
Articles of Incorporation (not providing for shares) – $ 30.00
Certificate of Amendment – $ 30.00
Certificate of Amendment (changing status of corporation from nonprofit to stock) – $ 70.00
Restated Articles of Incorporation – $ 30.00
Restated Articles of Incorporation (changing status of corporation from nonprofit to stock) – $ 70.00
Certificate Pursuant to California Corporations Code section 1505 – $ 30.00
Certificate of Correction -$ 30.00
Certificate of Election to Wind Up and Dissolve – NO FEE
Certificate of Revocation of Certificate of Election to Wind Up and Dissolve – $ 30.00
Certificate of Dissolution – NO FEE
Short Form Dissolution Certificate – NO FEE
Agreement of Merger/Certificate of Ownership – $100.00
Interspecies Merger (between corporations and other business entities) – $150.00
Conversion: California stock corporation converting to a California limited liability company (Form LLC-1A), California limited partnership (Form LP-1A), registered (Form GP-1A) or a non-registered (Form CONV-1A) California general partnership – $150.00
Statement of Information:– Domestic Stock and Agricultural Cooperative Corporations (Form SI-200) – initial or annual statement: $20.00 filing fee and a $5.00 disclosure fee – $ 25.00 – Domestic Nonprofit, Credit Union and Consumer Cooperative Corporations (Form SI-100) – initial or biennial statement – $ 20.00
Statement by Common Interest Development Association (Form SI-CID) – $ 15.00
Note: Corporations formed to manage common interest development associations must initially and biennially file a Statement of Information (Form SI-100 – filing fee $20.00) together with a Statement by Common Interest Development Association (Form SI-CID – filing fee $15.00) for a total of $35.00.
Amended statement (Form SI-200, Form SI-100 or Form SI-CID): Submission of a statement between applicable filing periods to report a change of information – NO FEE
Corporate Disclosure Statement (Form SI-PT) – Publicly Traded Corporations – NO FEE
Foreign (formed outside of California) Corporations
Statement and Designation by Foreign Corporation (qualification of a foreign stock corporation) – $100.00
Statement and Designation by Foreign Corporation (qualification of a foreign nonstock, nonprofit corporation).$ 30.00
Amended Statement by Foreign Corporation – $ 30.00
Certificate Pursuant to California Corporations Code section 1505 + $ 30.00
Interspecies Merger (between corporations and other business entities) – $150.00
Certificate of Surrender (of right to transact intrastate business) – NO FEE
Converting to a: – California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited liability company (Form LLC-1A), California limited partnership (Form LP-1A) or a registered California general partnership (Form GP-1A) – $ 70.00 – Non-registered California general partnership (Form CONV-) $30.00
Registering a corporate name of a foreign corporation NOT transacting intrastate business in California (for the calendar year – California Corporations Code section 2101) – $ 50.00
Certificate of Cancellation of a Foreign Name Registration (to cancel registration before calendar year end) ….NO FEE
Statement of Information:
– Foreign Corporation (Form SI-350) – initial or annual statement:
$20.00 filing fee and a $5.00 disclosure fee – $ 25.00
– Amended statement (Form SI-350):
Submission of a statement between applicable filing periods to report a change of information – NO FEE
Corporate Disclosure Statement (Form SI-PT) – Publicly Traded Corporations – NO FEE
Articles of Organization (Form LLC-1) – $ 70.00
Articles of Organization – Conversion (Form LLC-1A): California limited liability company converted from a:
– California stock corporation – $150.00
– California limited partnership, California general partnership or a foreign entity – $ 70.00
Amendment of Articles of Organization (Form LLC-2) – $ 30.00
Restated Articles of Organization (Form LLC-10) – $ 30.00
Certificate of Correction (Form LLC-11) – $ 30.00
Certificate of Dissolution (Form LLC-3) NO FEE
Certificate of Cancellation (Form LLC-4/7) – NO FEE
Short Form Cancellation Certificate (Form LLC-4/8) – NO FEE
Certificate of Continuation (Form LLC-8) – $ 30.00
Certificate of Merger (Form OBE MERGER-1) between limited liability companies ONLY – $ 70.00
Certificate of Merger (Form OBE MERGER-1) between limited liability companies and other business entities.$150.00
Converting to a:
– California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited partnership (Form LP-1A) or a registered California general partnership (Form GP-1A) ..$ 70.00
– Non-registered California general partnership or a foreign entity (Form CONV-1A) – $ 30.00
Statement of Information:
– Domestic Limited Liability Company (Form LLC-12) – initial or biennial statement – fully completed – $ 20.00
– Domestic Limited Liability Company (Form LLC-12NC) – biennial statement – no change – $ 20.00
– Amended statement (Form LLC-12):
Submission of a statement between applicable filing periods to report a change of information – NO FEE
Foreign (formed outside of California) Limited Liability Companies
Application to Register a Foreign Limited Liability Company (Form LLC-5) – $ 70.00
Amendment to Registration of a Foreign Limited Liability Company (Form LLC-6) – $ 30.00
Certificate of Correction (Form LLC-11) – $ 30.00
Certificate of Cancellation (Form LLC-4/7) – NO FEE
Certificate of Merger (Form OBE MERGER-1) between limited liability companies ONLY – $ 70.00
Certificate of Merger (Form OBE MERGER-1) between limited liability companies and other business entities.$150.00
Converting to a:
– California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited liability company (Form LLC-1A), California limited partnership (Form LP-1A) or a
registered California general partnership (Form GP-1A) – $ 70.00
– Non-registered California general partnership (Form CONV-1A) – $ 30.00
Statement of Information:
– Foreign Limited Liability Company (Form LLC-12) – initial or biennial statement – fully completed……………$ 20.00
– Foreign Limited Liability Company (Form LLC-12NC) – biennial statement – no change …………………………$ 20.00
– Amended statement (Form LLC-12):
Submission of a statement between applicable filing periods to report a change of information ………………NO FEE
California Limited Partnerships
Certificate of Limited Partnership (Form LP-1) – $ 70.00
Certificate of Limited Partnership – Conversion (Form LP-1A): California limited partnership converted from a:
– California stock corporation – $150.00
– California limited liability company, California general partnership or a foreign entity – $ 70.00
Amendment to Certificate of Limited Partnership (Form LP-2) – $ 30.00
Restated Certificate of Limited Partnership (Form LP-10) – $ 30.00
Certificate of Correction (Form LP-11) – $ 30.00
Certificate of Cancellation (Form LP-4/7) – NO FEE
Certificate of Revival (Form LP-7) – $ 30.00
Certificate of Dissociation (Form LP-101) by a general partner ONLY – $ 30.00
Certificate of Withdrawal (Form LP-102) by a limited partner ONLY – $ 30.00
Certificate of Merger (Form OBE MERGER-1) between limited partnerships ONLY – $ 70.00
Certificate of Merger (Form OBE MERGER-1) between limited partnerships and other business entities – $150.00
Converting to a:
– California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited liability company (Form LLC-1A) or a registered general partnership (Form GP-1A) – $ 70.00
– Non-registered California general partnership or a foreign entity (Form CONV-1A) – $ 30.00
Foreign (formed outside of California) Limited Partnerships
Application for Registration (Form LP-5) – $ 70.00
Amendment to Application for Registration (Form LP-6) – $ 30.00
Certificate of Correction (Form LP-11) – $ 30.00
Certificate of Cancellation (Form LP-4/7) – NO FEE
Certificate of Merger (Form OBE MERGER-1) between limited partnerships ONLY – $ 70.00
Certificate of Merger (Form OBE MERGER-1) between limited partnerships and other business entities – $150.00
Converting to a:
– California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited liability company (Form LLC-1A), California limited partnership (Form LP-1A) or a
registered California general partnership (Form GP-1A) – $ 70.00
– Non-registered California general partnership (Form CONV-1A) – $ 30.00
Statement of Partnership Authority (Form GP-1) – $ 70.00
Statement of Partnership Authority-Conversion (Form GP-1A)…registered California general partnership
converted from a:
– California stock corporation – $150.00
– California limited liability company, California limited partnership or a foreign entity – $ 70.00
Statement of Denial (Form GP-2) – $ 30.00
Statement of Dissociation (Form GP-3) – $ 30.00
Statement of Dissolution (Form GP-4) – NO FEE
Statement of Merger (Form GP-6) between partnerships or partnerships and foreign other business entities …$ 30.00
Certificate of Merger (Form OBE MERGER-1) between partnerships and domestic other business entities……$150.00
Statement of Amendment/Cancellation (Form GP-7) – $ 30.00
Converting to a:
– California stock corporation (Articles of Incorporation containing a statement of conversion) – $150.00
– California limited liability company (Form LLC-1A) or a California limited partnership (Form LP-1A) – $ 70.00
– Foreign entity (Form CONV-1A) – $ 30.00
California and Foreign (formed outside of California) Limited Liability Partnerships
Application to Register a Limited Liability Partnership (Form LLP-1) – $ 70.00
Amendment to Registration (Form LLP-2) – $ 30.00
Alternative Security Provision (Form LLP-3)…if filed along with Form LLP-1 at the time of registration…………..NO FEE
Alternative Security Provision – Annual Confirmation (Form LLP-3) – $ 30.00
Notice of Change of Status (Form LLP-4) – $ 30.00
Unincorporated Associations
Registration of Unincorporated Nonprofit Association – $ 10.00
Statement By Unincorporated Association – $ 25.00
Initial & Biennial Statement By Common Interest Development Association (Form SI-CID) – $ 15.00
Foreign (formed outside of California) Associations
Statement and Designation by Foreign Association – $100.00
Amended Statement and Designation by Foreign Association – $ 30.00
Certificate of Surrender of Right to Transact Intrastate Business – NO FEE
Foreign (formed outside of California) Lending Institutions
Statement by Foreign Lending Institution – $ 50.00
Supplement to Statement by Foreign Lending Institution – NO FEE
Foreign (formed outside of California) Partnerships (Other than a foreign limited partnership subject to Chapter 4.5 (commencing with section 15900) of the California Corporations Code or a commercial or banking partnership established and transacting business in a place without the United States)
Statement by Foreign Partnership – $ 25.00
Resignation of Agent for Service of Process
Statement of Resignation of Agent Upon Whom Process May Be Served in California ………………………………..NO FEE
Disclaimer of Proper Appointment
Disclaimer of proper appointment as an agent for service of process, corporate officer or corporate director….NO FEE
Service Fees
Reservation of Corporation, Limited Liability Company or Limited Partnership Name
Issuing a Certificate of Reservation of a Corporate, Limited Liability Company, or Limited Partnership Name …$ 10.00
Priority Telephone Service – Name Availability (each name searched – requires a prepaid account) ……………..$ 4.00
Substituted Service of Process
Delivery to the Secretary of State of copies of process against a corporation, limited liability company, limited partnership, general partnership, limited liability partnership, firm, association, business trust, or nonresident personal representative of an estate, for each corporation, limited liability company, etc.,
sought to be served by such delivery – $ 50.00
Certificate Fees
Issuing a Certificate of Status (certifying to the current status of the entity) – $ 5.00
Issuing a Certificate of Filing of All Documents (for each document listed) – $ 5.00
Issuing a Certificate of No Record – $ 5.00
Issuing a certificate prescribed by the Secretary of State for recording with the county recorder pursuant to
California Corporations Code section 1109 (corporations only) – $ 5.00
Reproduction/Certification Fees
Affixing certificate and Seal of State, unless otherwise provided for – $ 5.00
Making a copy of any record or document on file*.$1.00 for the first page plus $ .50 for each additional page, per copy
*The last complete Statement of Information filed by a corporation or limited liability company is available for
reproduction. The most current Statement of Information is also available whether a completed or “NO CHANGE”
form is of record.
Other Services
Mail and over the counter requests for status information:
(for each name searched) – corporations, limited liability companies and limited partnerships only…………..$ 4.00
Priority Telephone Service – status information (requires a prepaid account):
(for each name searched) – corporations, limited liability companies and limited partnerships only………….$ 4.00
FAX return of status information or copies of documents (per entity, in addition to any other fees):
– FAX transmitted within the United States………………………………………………………………………………………….$ 5.00
– FAX transmitted internationally ……………………………………………………………………………………………………….$ 10.00
To Facilitate Requests:
Requests for certificates, status information, and/or copies of filed documents should be directed to the Secretary of State, Certification and Records, P.O. Box 944260, Sacramento, CA 94244-2600. Sufficient fees must accompany all requests. If the number of pages is unknown when ordering copies, you may send a check for $30.00 per entity (refunds issued for overpayments exceeding $10.00) or a blank check with “NOT TO EXCEED $30.00” written below the amount payable line. If the required fees exceed the amount provided, the request will be returned with a letter showing the amount due. Note: The order will be completed upon receipt of the total fees.
Special Handling Fees
Special handling fees are charged for filing, certificate, copy and name reservation requests that are hand-delivered to the California Secretary of State’s office for over-the-counter (drop off) processing. Special handling fees are in addition to regular fees for such services and are applicable each time a filing, certificate, copy or name reservation request is presented. Special handling fees must be presented separate from other applicable fees. Documents or requests that are delivered with a special handling fee are processed in priority over documents or requests submitted by mail.
Special handling fee for filing a document – $ 15.00
Special handling fee for certificates and for certified or uncertified copies of filed documents – $ 10.00
Special handling fee for reserving a corporate, limited liability company or limited partnership name – $ 10.00
Note: Special handling is NOT applicable to documents or requests received through the mail.
Special handling fees should be presented separate from other applicable fees.
Preclearance and expedited filing services (as described below) are available for documents filed with the California
Secretary of State pursuant to the California Corporations Code, the California Financial Code or the California Insurance
Code. These services are available only in the Secretary of State’s Sacramento office.
Preclearance service provides a customer with the opportunity to submit a business entity document in person to
the Secretary of State’s Sacramento office prior to filing to determine if the document conforms to law and to receive
a preclearance response within one of the following guaranteed time frames and for the specified preclearance fee:
– Class I Service ……………………………………………………………..24 hour response time ……………………………… $500.00
– Class II Service…………………………………………………………….72 hour response time ……………………………… $400.00
– Class III Service……………………………………………………………. 5 business day response time………………….. $300.00
– Class IV Service …………………………………………………………..10 business day response time………………….. $250.00
Expedited filing service provides a customer with the opportunity to submit for filing a business entity document in person to the Secretary of State’s Sacramento office and to receive a filing response within one of the following
guaranteed time frames and for the specified expedite fee:
– Class A Service (preclearance approval required) ………………………….4 hour response time ………………………… $500.00 (not used very often)
– Same Day Business Filing Services – Class B Service (must be received by the Secretary of State by 9:30 a.m.)…Same day response time (by 4:00 p.m.) $750.00
– 24 hour Business Filing Services – Class C Service – 24 hour response time – $350.00
When someone is ready to set up their first business they will need to decide what type of business structure they want. One of the most common in the state of California is to establish an LLC which is a limited liability company. This means that one or more people own the business and the profits will go to the different members so that the business does not have to file its own individual tax return like corporations would typically do. Here we’ll take a look at the facts about setting up or dissolving an LLC in California.
Why Would I Want To Set Up An LLC?
Setting up this type of business structure allows you to separate your business activities from your personal assets. This allows you to greatly reduce the liability you are exposed to as an owner. The process of setting up an LLC in California is fairly straightforward but none the less, there are quite a few steps that you need to take and for that reason, many choose to use a service to help them with the process.
Ten Steps To Setting Up Your LLC In California
1. Unique Company Name
You’ll be required to have a company name that is unique to your business and that hasn’t already been registered with the state of California. You can use the state’s website to see if the name you want is available. If you’re in Sacramento we can even help you reserve a name if you plan on starting the company later on.
2. Get An Organizer To Set Up Your LLC
The organizer is the individual or company that puts together the draft for your LLC. If you go with us then we will be your organizer. As such we’ll put everything together that is needed.
3. Registered Agent Designation
The law requires that you have a registered agent designated and it will be a corporation or an individual. This is a requirement stipulated by the Articles Of Organization form.
4. Establish The Management And Ownership Structure Of Your LLC
In California, you’ll be asked whether or not your LLC will have multiple managers, a single manager, or if the business will be managed by all members of the LLC. This means that you have to decide exactly how it will be structured. We can help with that decision if it is needed.
5. Set Up Your Operating Agreement
When you establish your business in California you’ll have to determine how it will be governed and how the pay, capital, and profits will be distributed. Other factors that have to be considered are fiduciary constraints, voting, and liability.
6. Complete The Filing For The Articles Of Organization
This state requires that you file articles of organization which give all the details of the company. The California Secretary of State will need to give its acceptance and then from that moment the company is formed.
7. Get Your EIN And Establish A Business Account With Your Bank
You will need to have an EIN number in order to have a business account with your bank. You will also need it to file taxes regardless of whether the company has one employee or more than one.
8. California Taxes
The state will require $800 as a minimum annual tax. This will need to be paid every year including the first year. This is not related to income or other taxation but is simply a fee to do business in the state.
9. Get Any Permits Or Licenses That May Be Required
You will typically need one or more permits or licenses to operate in a particular county or city where you have your business. If you fail to get the required licenses or permits you could face very expensive fines.
10. You Have 90 Days To File Your Statement Of Information
When you form your LLC you will need to file your SI or Annual Report within a maximum of 90 days. After the first filing, you will then need to file every two years. This allows this state to stay up-to-date about any information related to your business.
How To Dissolve Your LLC In California
There are three different methods California allows when dissolving your LLC. You can speak with us about helping you to choose and process the one that is appropriate for your situation. If you are the sole owner or if all owners agreed to the dissolution then you will only need to file one certificate of cancellation with the state.
After getting the Certificate of Dissolution you will fill out the needed information along with signing it and dating it. Indicate why you are dissolving the company and whether or not all members are in agreement. Provide the necessary information regarding assets and debts and then file it with the state.
Our company helps those in and around Sacramento with expedited services in the state. We can help you in putting together all the necessary documents you will need to file as well as helping you with having all the necessary copies. We provide the service of issuing State checks that are required and even in-person submissions of your documents in Sacramento.
When’s the Secretary of State processes your documents we can pick them up for you. We can get certified copies of those filings. We can also make sure you get certified copies and a receipt of payment through regular mail.
We can help you file your Articles of Organization with the state and it can all be expedited. We even provide 24-hour rush services for LLCs. We have several options for those who need different documents related to their business processed quickly. The prices of these options vary and will depend on the type of document you need.
Our same day filing service cost a little more but allows you to submit your documents without having to check them prior to when you’re about to submit them. To take full advantage of this service in Sacramento will mean that you have to get the documents to us by 9:30 am. Call or come in today to see how we can help.
