How much does it cost to hire someone to set up a CA LLC for me?
Can I do this myself? My business is not complicated. What are the annual reporting or filing obligations / costs? Though I live in California, would it be better (cheaper, tax savings, etc.) to form the LLC in Nevada? I will be working in California but will visit Nevada at times.
it shouldnt cost more then 2000$ even with a good well known office...
i suggest you do it your self... just search on line all the info is there .
you can save a lot of money and to understand much more about your business... in the future when your business will grow it will be a good time to turn your book keeping to a professional... good lucj
If you do decide to hire, I highly encourage you to use the mosaicHUB Expert Search tool or Concierge service. The expert search tool allows you to search for service providers by location, expertise, and ratings. The Concierge service allows you to post your project, and we will hand-select experts for you.
Please feel free to private message me with any questions. Best of luck!
mosaicHUB Community Moderator
From what I have seen, the cost to have an attorney set-up the LLC (including the LLC operating agreement) and review all of the LLC legal issues, vary anywhere from $1,000 to $2,500 depending on the complexity of the LLC and number of members.
My take is you hire someone to prepare these documents using an attorney in a review type capacity. Here is a brief explanation of the state LLC rules though I do not discuss the LLC operating agreement which is also required.. As I am not an attorney you should consult with an attorney when or if you file your LLC.
CA - the LLC must first qualify/register with the Secretary of State (“SOS”) by filing articles of organization (“Article") and then complete a statement of information. The Article, Form LLC-1 filing fee is $70. The Statement of Information, Form LLC-12 filing fee is $20. This form is the equivalent of an "Annual Report". CA law requires active LLCs to file a LLC-12 within 90 days after filing their articles of organization. Also, LLCs must file subsequent statements of information to renew registration every two years. The penalty for failing to file within 90 days after filing the articles of organization is $250 (which is another reason why you should not do this yourself as mistakes can be expensive).
The LLC must also appoint someone to serve as the “registered agent” or “agent for service of process”. This is a person or business in CA that agrees to be served with papers in the event of a lawsuit. The annual cost for a registered agent is about $100. If you intend to "do business as" (DBA) a name different from your LLC name, then you file a CA DBA in the county where your business is located. This will allow you to open a bank account and accept payment under the different name. If you simply want to do business as your LLC name, then the DBA would not be required.
NV – A NV LLC is established by filing state Articles with the NV SOS office together with a $75 filing fee. After filing the Articles and with the NV SOS's approval, an "initial list of managers or managing members/business license" document is issued by the NV SOS with a $325 filing fee. After the filing of these two documents, at a cost of an additional $50, a NV "Certificate of Qualification" is mailed, which is required by the CA SOS in order to do business in the state of CA.
Similar to CA, the LLC must then appoint someone to serve as the “registered agent” or “agent for service of process”. This is a person or business in NV that agrees to be served with papers in the event of a lawsuit. You will also need to pay a $30 "Certification of Document fee" as NV law requires that a certified copy is kept at the LLC's registered address. Remember before transacting intrastate business in CA the LLC must first qualify/register in CA. You do this by completing a Form LLC-12, statement of information and Form LLC-5, Registering a Foreign LLC. The fees are $70 and $20, respectively.
The ramifications for failing to qualify can be severe, at least for a corporation (as I haven't yet reviewed the LLC rules on failure to qualify). As an example, a foreign corporation that fails to qualify to transact intrastate business in California may subject the corporation to a $20-per-day civil penalty, bar it from maintaining any actions in California courts based upon its intrastate business until it has qualified and pay a $250 penalty, and subject it to prosecution for a misdemeanor punishable by a fine of from $500 to$1,000. Failure to qualify may also subject persons who do business on behalf of the foreign corporation to personal liability. Employees and agents may be subject to prosecution for a misdemeanor punishable by a fine of from $50 to $600. This is another reason for using an attorney if you decide to go this route.
Therefore, the initial first year state fees assuming you do business in CA and incorporate in NV is $740 ($450 + $90 + $100 + $100) not including any state CA taxes with its $800 minimum requirement.
Why would you want to set up an LLC in NV while doing business in the state of CA? Surprisingly their may be some good reasons for doing this as it is not that uncommon but the non-existent NV state taxes is generally not one of these reasons (as CA taxes your worldwide income). What about NV’s recently improved statutory “charging order” legal protection? This protection against judgment creditors of members of LLCs makes Nevada’s protection of debtors, who are members of LLCs, one of the strongest debtor protection legal schemes in the country. That may be a reason though you should confirm that this would protect you in CA if you are sued in CA. You may also wish to use this approach if you want the excellent privacy protection available by setting up your LLC in NV. There are some other reasons for this structure but I have already added enough for this answer.
Please consult with an attorney when or if you file your LLC in CA or NV.
Your title question is not the same as your details. You asked a more complex, multi-part question in the details, some of which requires a legal opinion. As an attorney, I will not answer in the blind. To get a complete answer you should get a consultation with a California attorney. Choice of business form has significant tax and liability impacts. It may be an upfront cost now to get a comprehensive answer, but it can potentially save you much more in the long term if you make the wrong decision. You could always do the research yourself, But when you put a value on your time to get up to speed so you understand what and why you are choosing a particular business form, it pays to get professional help.
Yes you can do it yourself. The filing fee is $70.00. Visit your state website for the forms and instructions. http://www.sos.ca.gov/business/be/filing-tips-llc.htm
It's usually best to create an LLC in the state you live in, otherwise there are additional fees to do "foreign business" in another state. You can always change states as you grow and there is a real need to change.