Many of us have dual licenses- one of them being in California. We know this is a high-need state regarding virtual therapy services, so it is a priority to maintain this license even when moving to a different state. If you want to create your own LLC in California as an independent contractor while residing elsewhere, however, you need to take the correct steps that won’t put you in legal trouble. 

The license you will want to apply for is called a Foreign LLC. The name of this application is misleading as most of us hear the word “foreign” and imagine it means out of the country. Not in this case! It just means you don’t live in California.

You can access the official application for a Foreign LLC at https://bpd.cdn.sos.ca.gov/llc/forms/llc-5.pdf

If you want to pay for additional assistance and have the California Registered Agents do the more tedious parts of registering from out of state, you can access their application at  https://www.californiaregisteredagents.net/order/foreign-llc-corporation/?_gl=1*fl9f4x*_up*MQ..&gclid=CjwKCAjws9ipBhB1EiwAccEi1C4Boa0lbwqLV_9RQRn_fu1UFphzw6INW2ykHNC3-eU4nr-P9pe-9hoC1pcQAvD_BwE

Below is a list of the mandatory steps you need to take when registering your LLC in California from out of state:

1. Your Foreign LLC must have a California registered agent- meaning this agent requires a physical street address. This sounds like something that could halt your plans altogether. The fantastic news is that you can spend $49 a year for  California Registered Agents to be your address (this is an option you can select when filling out the online application form linked above).
2. Be sure to obtain a Certificate of Good Standing from your state. You will need to research the requirements for your home state (as they may vary). However, you can pay a little extra and hire California Registered Agents to obtain one.
3. Remember that with your Foreign LLC, you must pay the California Franchise Tax (currently $800). The costs seem to add up, but this is to get you started. If you are serious about having your own LLC as an independent contractor in California, the better pay you will get by being your own boss will make this worthwhile. 

** I should note that I have no ties with the California Registered Agents- but I want to make sure you are aware that they are an option if you become overwhelmed easily. **

One last thing- to protect yourself, it is advised that you consult with private legal counsel prior to submitting your documents to the Secretary of State. You will want to be confident that all issues have been addressed appropriately so that nothing prolongs this process. The sooner you get it all sorted out correctly, the sooner you can call yourself a business owner who only answers to YOU. Congratulations on making this big intimidating step! 

For additional information on registering your LLC in California, please visit the Secretary of State’s website at https://www.sos.ca.gov/business-programs/business-entities/starting-business-checklist/