Every business in California that engages in legal matters, architecture, land surveying, accounting, and advisory services must register a limited liability partnership. The registration is essential to help the partners limit their vicarious liability for any business tort. The tort includes malpractice; hence the registration is necessary to ensure partners are not responsible for the damages.

Every LLP in California must register with the state secretary according to different regulations. An LLP can be complicated to form, but the registration should be straightforward.

Here are the steps to register an LLP in California. Besides the registration, you must also have the relevant licenses and documentation needed for the business operations.

Perform a name search

You need to begin by formulating a name for your business. You can create a name and search in the company registry directory to ensure the name is not similar to other firms. You can also do an internet search to ensure you get a unique name that is not in use. In California, all businesses must have a “Registered Limited Liability Partnership” or “Limited Liability Company.” You can also use the abbreviation RLLP after the business name.

File a registration

It is easier to set up LLP online if you follow the guidelines. You do not need the intervention of a lawyer or agent. You should file the registration with the California secretary of state through the online portal.

You will need to provide the following details-

• The official LLP name
• The LLP’s address, i.e., the address of the main business office. The mailing address includes the street address and that of the business agent or the person registering.
• A brief description of the LLP’s business (what the company deals in)
• A statement that the partnership is registering as an LLP.

You also need to download the application form from the website, fill in the required details, and submit it with the application details.

Agent for service of process (Registered Agent)

Every LLP registered in California must have a registered agent, also referred to as an agent for service of process. The agent’s role is to receive legal papers on behalf of the LLP. It can be a corporation or an individual registered or residing in California. The agent must also have a proper certification according to the California Corporation Code Section 1505. The secretary of state must certify the certification.

Preparing the partnership agreement

This documentation is unnecessary; however, it is necessary to have it just in case of anything. It can also be evidence of the partnership between the different players in the LLP. You should have the best partnership agreement and include all the necessary details and elements.

Get the EIN

LLP is a legal entity whose liability is limited only to the entity and not the individuals. It is separate from the individuals since it files its taxes and covers its liability. Therefore, the owners must ensure it has a federal Employer Identification Number. You need to file these details with the IRS. The EIN is necessary even if the LLP has no employees and has not begun operations. You can easily file for the EIN through the IRS website; the process is free.

Register for taxation

Any business corporation in California must pay taxes if it meets the requirements to file for taxes. LLPs pay different taxes; hence, you need to register to pay all the taxes to avoid any business penalties. LLP’s operations will determine the taxes it pays to the IRS.

You must also register with the California taxing authority, the California State Board of Equalization (BOE). You can do this online or visit any field office. You must also register the employer taxes with the California Employment Development Department (EDD).

There are also other state taxes you must know. For instance, California has an $800 annual tax on all LLPs. You must register to pay the tax through the California Franchise Tax Board (FTB). You need to learn all other LP and business taxes to ensure you do not default or fail to register for the relevant taxations.

Get your business license

You need to obtain the local or state licenses for your LLP. There are different licenses you also need for the business. The licenses will also vary based on the goods and services you offer. Ensure you discuss the business with a legal representative or do your research to understand all the relevant taxes you must pay. You also need to review the California state laws regarding certain restrictions on different professions and file the pertinent details.

Get the necessary Insurance

Once you have the registration certificate, relevant licenses, and documentation, you need insurance coverage for your business. The insurance coverage for your business will depend on different factors. There are compulsory certificates such as those for business motor vehicles.

You need to file all insurance coverage related to tort, which covers concepts such as malpractice, accidents, employee safety, working conditions, etc. You also need insurance coverage before you begin your operations.

Conclusion

Before you begin the LLP operations, you must ensure you register with the relevant authorities to avoid the penalties. Once you follow the correct protocols, you should have the required licenses, certificate of incorporation, tax payment documentation, licenses, and relevant insurance covers.