What the Secretary of State offers
The California Secretary of State's business pages say that more than 140 business filings can be made online, with filing also available by mail or in person. The Business Entities section lists name reservations, Statements of Information, a forms and fees page and records searches. It is the place to start for the formation filing itself.
Fees, forms and processing options change. Read the current fee schedule on the Secretary of State's site before you file, because this page does not quote any amounts.
The order of steps
- Pick a name and check it. The Secretary of State offers name reservations and a records search.
- File the formation document. Online, by mail or in person.
- File the Statement of Information. A filing the Secretary of State lists among its business services.
- Register for state taxes. The Franchise Tax Board administers the LLC tax; see our LLC tax guide.
- Open a business bank account. Keep business money apart from personal money.
- Get licenses and permits for the trade. These depend on the industry and the city.
When money leaves
| Step | Cash timing |
|---|---|
| Formation filing | Paid up front |
| Statement of Information | Filed as required; check timing and any fee |
| Annual LLC tax | Due on the state's schedule after formation |
| Local licenses and permits | Depends on city and trade |
The point of the table is sequence. The state filing is a one-time cost, but the annual tax is a repeating one, and a new LLC with no revenue yet still has to plan for it.
Choosing between starting small and filing early
Some owners file the formation paperwork first and plan afterwards; others wait until the first customer is committed. There is no single right answer, but the cash logic is simple. Once the LLC exists, annual obligations begin on the state's schedule whether or not the business has earned anything. If you are still testing an idea, it can make sense to confirm demand first and form the entity when you are ready to take your first order.
If you do file early, keep a short written list of the dates that follow the filing, so the first annual obligations do not arrive unplanned. A calendar reminder costs nothing and is the cheapest compliance tool there is.
You do not need an LLC to apply for funding
Sole proprietors can apply, so forming an LLC is not a prerequisite. There are many reasons to form one, such as separating personal and business liability, but they are legal and tax questions to settle with a professional, not funding requirements. If you are choosing between a sole proprietorship and an LLC, decide on the business reasons first.
Where funding fits
If your first months involve equipment, inventory or payroll before revenue, working capital from $25,000 to $5,000,000 can help bridge them. Funding can arrive in as little as 24 hours, FICO scores of 500 and up are considered, and the file centres on about three months of business bank statements, with no tax returns required. The credit pull is soft. A brand-new entity has little banking history, so approval is not assured. The application takes about five minutes.