What are the requirements for setting up a Limited Liability Company (LLC) in California and are there any ongoing legal obligations for maintaining the LLC's status?
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As a lawyer, I can provide legal advice on the requirements for setting up a Limited Liability Company (LLC) in California and the ongoing legal obligations for maintaining the LLC's status.
To set up an LLC in California, the first step is to file the Articles of Organization with the California Secretary of State. The Articles of Organization should include:
- The name of the LLC
- The address of its principal office
- The name and address of the LLC's registered agent
- The name and address of each LLC member
California law requires that every LLC have an operating agreement that outlines the LLC's management structure and the rights and duties of each member. While not required by law, it is highly advisable in order to protect the owners from legal disagreements and potential litigation.
Additionally, after the LLC is formed, it must obtain any necessary licenses or permits required for its specific industry or operations.
In terms of ongoing legal obligations, California law requires LLCs to file a Statement of Information with the California Secretary of State within 90 days of filing its Articles of Organization and then bi-annually every two years. The Statement of Information should include:
- The LLC's name
- Its principal office address
- The name and address of its registered agent
It is important to note that failure to file the Statement of Information can result in the LLC being suspended or facing penalties.
LLCs in California must also keep proper records of financial transactions and keep them separate from personal financial records. LLC owners may also be required to obtain any necessary licenses or permits for their specific industry, and should be aware of any annual fees or taxes that must be paid to maintain the LLC's status.
In conclusion, to set up an LLC in California, one must:
- File Articles of Organization
- Draft an operating agreement
- Obtain any necessary licenses or permits for their specific industry
Ongoing legal obligations include filing bi-annual Statements of Information and keeping proper financial records. If you have questions or concerns about the specific requirements for your LLC, it is recommended to seek the advice of a licensed attorney familiar with California LLC law.
