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What are the requirements for forming a limited liability company (LLC) in California?

Picture of Chris Battis By   ·  1 minute read

To form a limited liability company (LLC) in California, there are several requirements that must be met. These requirements include:

  1. Name Reservation: The proposed name for the LLC must be examined and reserved with the California Secretary of State before the LLC can be formed. The name must comply with the state's regulations and must not be similar to or likely to be confused with an already existing business in the state.
  2. Articles of Organization: The LLC must file Articles of Organization with the California Secretary of State. The articles of organization must include the name of the LLC, the purpose of the LLC, the name and address of the registered agent, and the name and address of the LLC's members.
  3. Registered Agent: The LLC must have a registered agent who is authorized to receive legal documents and notices on behalf of the LLC. The registered agent must be a resident of California or a business entity authorized to transact business in the state.
  4. Operating Agreement: Although not required by law, it is recommended that an operating agreement be drafted to govern the LLC's affairs. The operating agreement should include provisions relating to the management and operation of the LLC, the rights and responsibilities of the members, and the transfer of membership interests.
  5. Fees: The LLC must pay the required fees for filing the Articles of Organization with the California Secretary of State.

It is important to note that there may be additional requirements or limitations depending on the specific circumstances of the LLC. Furthermore, it is recommended to seek the guidance of an experienced business law attorney when forming an LLC to ensure compliance with all state and federal regulations.

In conclusion, to form a limited liability company (LLC) in California, the business must file Articles of Organization with the California Secretary of State, have a registered agent, reserve a name, draft an operating agreement, and pay the required fees. It is suggested to work with an attorney if you have questions or uncertainties around any of these requirements.