Business Entities and the State of California

Over the years, my creative streak has taken me down several entrepreneurial paths. I've owned a couple of small businesses, as an individual and as a partner. I've also handled most of the administrative chores for our family business, so I've had plenty of experience dealing with bureaucratic details.

When I sat down to remind myself which agencies I needed to contact in order to open the doors of my Heaven's Wait web store, I realized that the first order of business was to establish a new business entity. Knowing that I'm at a stage of my life where estate planning is a must, I thought it would be wise to establish a Limited Liability Company (LLC) and to make my sons members right from the start. That way, if anything happened to me, they would already be part owners. After all, this project has never been about money to me.

Filing for a DBA, a local business license, or even a business bank account was dependent on the establishment of that LLC and its accompanying account number. So I filled out the application and sent it to the State, along with the registration fee. At that point, the wait began. 

I knew these processes took a while, but after more than a month passed with no response, I went online to see whom I could contact. Well, it turned out there was no one to contact. The State didn't accept calls regarding the progress of business applications. So I researched the site further to see what I could do to find out if the State had even received my application. I finally came across a notice stating that due to budget cuts, there were significant delays in the processing of such applications and that I would be notified when it had been handled.

HUH?? The State, though in such budget despair, doesn't staff the office at the center of getting new businesses and their accompanying revenues up and running? Am I missing something here?

A good two months later, I received correspondence from a clerk, who asked for more info and another submission. I was actually relieved at that point. 2011 was almost over. An LLC comes with an $800/yr. flat tax. Why would I resubmit, pay my $800, and have to pay it again when the new year began?

So, if you've been wondering why HW's online store has yet to open, wonder no more. I submitted a fresh application in January. It's hard to say when I'll hear back from the State. At last check, December applications were still being processed. Am I having fun yet?