How do I set up LLC in CA? - Posted by Steve

Real Estate Investing
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Posted by Jeff on June 08, 2007 at 08:41:08:

Wow that was a pretty smug answer. What happens when your “umbrella” insurance denies your claim???

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How do I set up LLC in CA? - Posted by Steve

Posted by Steve on June 07, 2007 at 23:41:22:

I like to set up a LLC in CA. I am in Nor-CA. Any suggestion?what is the best and effective way to do this?

Thanks
Steve

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Re: How do I set up LLC in CA? - Posted by Rich-CA

Posted by Rich-CA on June 08, 2007 at 16:36:04:

I live on Nor CA and would not set up an LLC here if I did not have to. For tax purposes, the minimum tax (whether you make money or lose it by the boatload) that applies to Corps also applies to LLCs and LLPs. I think its $1700 per year. I don’t know what it costs for out of state LLCs to do business here, but knowing the greed of our politicos, its probably the same or even higher.

Contrary to what camgere says, you need both an LLC and a liability coverage high enough to cause the insurance company to fight rather than settle.

But the first question is: do you really need an LLC in CA or do you need one at all. Once you have the reasons settled, you can decide what you require.

Another aside - I used to work for Pacific Bell. Guess where they were incorporated? Nevada. You should have solid reasons for where you form the LLC.

For creating n LLC, I use the Nolo Press “LLC Maker” software. They keep the forms updated, tell you what you have to do every step of the way, and use the fill in method to decide what to put in the forms. They cover every state so you can do some comparisons of requirements and costs. Go to www.nolo.com and look for “LLC Maker”.

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Re: How do I set up LLC in CA? - Posted by camgere

Posted by camgere on June 08, 2007 at 06:54:33:

Spend $13.57 at Amazon.com on “How to use LLCs and LPs” by Garrett Sutton. Read it. Spend $139 at Legalzoom.com (not a law firm) doing the paperwork to set up a basic LLC. Spend $800 a year on Gov. Schwarzenegger’s cigar fund. Check to see how much more your accountant will charge even if you are a single member LLC. Make sure you do annual filings, minutes of meetings, entity notices and separate bank account. Wonder why you didn’t buy $500/year of umbrella insurance that can actually pay out real money in case of liability.
Good Luck With Your Endeavors.