Do you need a physical property for your LLC in California?

Do you want to form an LLC in California but unsure if you need a physical address, do not worry! Here’s the answer and potential solutions.

Is it a requirement to have a physical space for your LLC in California?

In California, it is a requirement for your LLC to have a physical property. The reason why your LLC requires a physical space, rather than a PO box or a virtual address, is so that important business and legal documents, as well as government correspondence, can be sent to, and received by your LLC during Californian working hours, or working hours of the state in which your LLC is set up. One solution that LLCs have often used is using the home address of one of its members, usually the member who resides in California if the others do not, or the member who is also your LLC’s registered agent address will be used as your LLC place of conducting business. However, this may not be the ideal situation for your LLC’s registered agent as his/her address will then become part of California’s public record, which many private individuals would not want. Then what would the solution be, if not the address of one your LLC’s members? 

Is renting or purchasing property in California a solution?

As a solution, it is possible for your LLC to rent, or even purchase property in California to be used as your LLC’s legal address where important documents and correspondence can be sent to. However, one thing that must be considered is the price to rent or purchase property in California. Purchasing property in California is expensive in relation to surrounding states. There are several factors that contribute to California’s high property prices. Firstly, of all the US states, California is considered a very desirable place to live and conduct business, and secondly the demand for property in California is also very high. This high demand for property, especially in California coastal regions, is due to a lack of supply of housing and rental property, which in turn drives the rental and purchasing prices of property even higher. So if your LLC has the financial capital required to rent or purchase property in California, then by all means go for it, but if your LLC does not have the financial capital needed to purchase property, then hiring an independent Registered Agent may be your best solution. 

Using an independent Registered Agent

If you do not want to use one of your LLC’s members’ address as the official property of your LLC, and you do not want to rent or purchase property in California, then hiring a Registered Agent and using their office as your LLC’s official address to receive important legal and government correspondences is indeed your best solution. A Registered Agent is a person such as an attorney or company that offers the services of a registered agent; your appointed Registered Agent will send and receive legal papers, including legal summons and document filings, on your LLC’s behalf. It is required that your Registered Agent be a resident of California and also be authorized to conduct business in California. Appointing an independent Registered Agent, rather than you acting as your own Registered Agent, has other benefits. One such benefit is that an independent Registered Agent can constantly keep you apprised of incoming mail and documents yet also help you keep your LLC compliant by informing you as to when filing state documents and annual maintenance fees are due.

As you can see, hiring a Registered Agent is not simply about obtaining a physical property or address for your LLC, even if needing a physical space for your LLC is your sole motivation to hiring a Registered Agent. You can visit TRUiC’s website to find out more about how to about choosing and appointing your LLC’s Registered Agent and further benefits of having for your Registered Agent for your LLC.