Limited Liability Company
A Limited Liability Company, or LLC, has become a popular business structure in California because of its flexibility in offering many of the benefits of a corporation while requiring less formal legal and administrative procedures.
The Los Angeles business law firm of Howard Law can assist you in forming an LLC in California and offers a wide-range of business services throughout the Los Angeles area, including Anaheim, Santa Ana and Riverside. We understand start-up businesses are concerned about costs. However, seeking qualified legal advice can be critical to ensuring your business begins with the strong foundation necessary to avoiding tax and legal complications down the road.
Simply establishing an LLC with the state through an Articles of Organization is not sufficient for the proper legal formation of a Limited Liability Company. An LLC Operating Agreement and other legal documents must be prepared to realize the full advantages of an LLC and to remain in legal compliance.
In California, a Limited Liability Company can enjoy the pass-through tax treatment of a sole proprietor or partnership, or can elect to be considered a corporation for tax purposes. LLCs that are not taxed as corporations are subject to an annual franchise tax of $800.
Steps necessary to form a California Limited Liability Company include:
- Filing or Articles of Organization: Establishes the name of the LLC and its purpose as a business entity. The Articles of Organization also identify the business agent and a description of the type of business to be conducted, as well as whether the LLC will be managed by one manager, a single member, or multiple managers or members.
- Limited Liability Company Operating Agreement: Outlines the rights and obligation of members; contribution of capital or property to business formation; maintenance and delivery of records, reports and tax information; distribution of profits and loses; managerial duties; meetings and voting requirements; establishment of ownership interests; process for termination of members and dissolution of LLCs; and procedures to amend the operating agreement.
- Statement of Information: Must be filed with Secretary of State within 90 days of filing Articles of Organization. Includes names and addresses of managers; statement of nature of business activity; address of company's principal business office.
An LLC may be formed as a single member sole proprietorship or may involve a partnership or corporation. Determining the best legal structure for an LLC is best done with the advice of a qualified legal professional. Additionally, having the assistance of an experienced attorney is vital to making sure your interests are protected and to ensuring that you are complying with local, state and federal laws whenever you are involved with forming a business in the Los Angeles area.
California Limited Liability Company- Call (800) 872-5925 - Howard Law