Question

California multi-member LLC formation documents and San Francisco business licenses

Answer 1

Forming a multi-member LLC (Limited Liability Company) in California involves several steps, along with obtaining the necessary business licenses, especially if you’re operating in San Francisco. Here’s a breakdown of the formation process and licensing requirements:

### 1. **Forming a Multi-Member LLC in California**

**A. Choose a Name for Your LLC:**
- The name must include “Limited Liability Company” or abbreviations such as “LLC” or “L.L.C.”
- Ensure the name is unique and not already in use by another entity in California by checking the California Secretary of State’s business name database.

**B. Designate a Registered Agent:**
- A registered agent is an individual or business entity that receives legal documents on behalf of the LLC. You can be your own agent or designate someone else.

**C. File Articles of Organization (Form LLC-1):**
- Complete and file the Articles of Organization with the California Secretary of State.
- You may file online, by mail, or in person.
- The filing fee is typically around $70 (subject to change; check the latest fees on the Secretary of State’s website).

**D. Create an Operating Agreement:**
- Although not required by law, it’s advisable for multi-member LLCs to have an Operating Agreement, which outlines the management structure, ownership percentages, and operating procedures.

**E. Obtain an Employer Identification Number (EIN):**
- Apply for an EIN from the IRS, which you can do online. This is necessary for tax purposes and for opening a business bank account.

**F. File Statement of Information (Form LLC-12):**
- You must file an initial Statement of Information within 90 days of forming your LLC. This form provides updated information about your LLC, including addresses and members.

**G. Pay California's LLC Annual Franchise Tax:**
- California requires LLCs to pay an annual minimum franchise tax. As of now, the minimum is $800.

### 2. **Obtain Business Licenses in San Francisco**

**A. Business Registration Certificate:**
- Before operating in San Francisco, you must register your business with the San Francisco Office of the Treasurer and Tax Collector. This involves completing a Business Registration Form and paying a fee based on your anticipated gross receipts.

**B. Additional Permits and Licenses:**
- Depending on your business type, you may also need additional permits or licenses (e.g., health permits, signage permits). Check with the San Francisco Planning Department or other relevant agencies for specific requirements.

**C. Zoning Permits:**
- Ensure that your business location complies with local zoning regulations. You may need to submit a zoning permit application.

**D. Sales Tax Permit:**
- If your business sells tangible goods, you must obtain a seller's permit from the California Department of Tax and Fee Administration (CDTFA).

### 3. **Further Resources:**
- **California Secretary of State:** [Official Website](https://www.sos.ca.gov)
- **San Francisco Office of the Treasurer and Tax Collector:** [Business Registration](https://sftreasurer.org/business-registration)
- **California Department of Tax and Fee Administration:** [CDTFA Website](https://www.cdtfa.ca.gov)

### Conclusion
When forming a multi-member LLC in California, it's essential to follow the necessary legal steps for both state and local requirements. Always check the latest guidelines and fees, as these can change. Consulting a legal professional or business advisor can also be beneficial to ensure compliance with all regulations.