You might think, as a non-resident of California, that it would be harder for you to set up an LLC. Wondered how a Nevada LLC obtained a small minority membership interest in a Delaware LLC that owns and operates numerous shopping malls in California? According to TRUiC, starting an LLC in California can be done irrespective of your personal residential status. Is the key hiring a Registered Agent? In this article read more about how non-residents of California can set up an LLC.
After deciding on a name for your LLC, the next step is appointing a Registered Agent, also known in California as an Agent of Service of Process. As a non-resident of California, this is a vital step because you cannot act as your own Registered Agent. You specifically need to appoint a Registered Agent who resides in the state of California who can act as a receiver of legal documents and governmental correspondences on behalf of your LLC. Your Registered Agent will be responsible for receiving important documents, such tax forms, legal documents and notices of lawsuits, and also official government correspondences on behalf of you and your LLC.
Appointing a Californian Registered Agent will also provide your LLC with a legal California address to which all such documentation and correspondence will be sent and received. This is exactly how a Montana LLC, with one of its managing members being a California resident and therefore the LLC’s Registered Agent, managed to conduct business and operate lawfully in California.
After appointing a Registered Agent, it is all about registering your LLC with the California Secretary of State. This is done by filing an Articles of Organization form with the California Secretary of State, and within ninety days of filing your LLC’s Articles of Organization, also filing your Initial Statement of Information. Filing forms such as the Articles of Organization and the Initial Statement of Information forms can be a tricky process whether online, in-person or through the mail. See some suggestions and tips from the California Secretary of State on how to avoid the most common mistakes people make when filing forms to register their LLC.
How foreigners can start an LLC in California:
Setting up an LLC in the US is a good way for foreign companies to expand their business into the US. There are a few more steps involved for foreign citizens who wish to set up an LLC in the US, but the basic steps, as outlined on TRUiC’s site, remain the same. You simply need to choose in which state you would like your LLC to operate in, choose a name and hire a Registered Agent. To officially file your LLC in California, you will be required to file an Articles of Organization form with the California Secretary of State.
Additionally, you would need to create an LLC Operating Agreement for your LLC, obtain a Employer Identification Number (EIN) and a physical US mailing address, a necessary requirement of opening a US bank account. Opening a US Business Bank account is one of the more challenging steps. Unless you already have a personal US bank account, you will be required to make the trip to America and physically apply at a bank branch. But do not worry, as long as you have all the required documents, you can open your LLC’s Business Bank account in any US state, it does not necessarily need to be opened in California where your LLC will operate and conduct business.
Open an LLC in California today
If you are really passionate about opening an LLC in California, don’t let your residence status affect your decision or hinder the process of setting it up. Hiring a Californian Registered Agent and following TRUiC’s step-for-step guide to setting up an LLC in California will definitely go a long way in easing your process, so be sure to check out their site.
