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Case study

California LLC Formation and EIN for a Delivery Business

A transportation and delivery company needed a California LLC and a federal tax ID so it could open a bank account and start work. We filed the state paperwork and the EIN application and delivered the documents.

In50States case studyCalifornia

  • California
  • LLC formation
  • EIN

Overview

Fetchi Transportation & Delivery LLC needed to be set up properly in California and registered with the IRS before it could open a bank account and begin commercial work. In50States handled the whole process: the California filing, a certified copy of it and the federal EIN application.

The challenge

To operate and handle money, the company needed three things in order:

  • A correct state filing. Articles of Organization filed with the California Secretary of State under the California Revised Uniform Limited Liability Company Act.
  • A federal tax ID. An EIN from the IRS, which banks usually ask for, and which is needed to hire staff and file federal returns.
  • The right federal tax treatment. The company has more than one owner, so it needed to know which federal return it would file and what choices it has.

What we did

1. The California filing

We drafted the Articles of Organization and filed them with the California Secretary of State on January 31, 2024, with the LLC managed by its members. We then ordered a certified copy from the Secretary of State, which was issued on February 14, 2024.

2. The EIN

We prepared and submitted IRS Form SS-4. The IRS notice assigning the EIN is dated February 8, 2024. We explained the first federal filing, Form 1065 (the partnership return, which the IRS notice lists), and the tax-election options the notice describes: Form 8832 and Form 2553.

  1. Jan 31, 2024Articles of Organization filed in California.
  2. Feb 8, 2024IRS notice assigns the EIN.
  3. Feb 14, 2024Secretary of State issues the certified copy.

The result

The company ended up with a California LLC on the state record, an EIN and the paperwork to show for both. With the filing and the EIN in hand, it had what banks usually ask for when opening a business account (each bank sets its own rules) and a clear idea of its first federal filing.

What we delivered

  • The approved California Articles of Organization
  • A California Secretary of State certified copy
  • The IRS notice assigning the EIN
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