What are the steps I should take to form a limited liability company (LLC) in California, and what legal requirements should I be aware of?

To form a limited liability company (LLC) in California, individuals must follow the steps outlined below:

1. Choose a name for the LLC: The chosen name must be unique and not already in use by another LLC or business entity. The California Secretary of State's website can be consulted to ensure the name is available.
2. File Articles of Organization with the California Secretary of State: This document officially creates the LLC and includes information such as the LLC name and purpose, the names and addresses of the members or managers, and the registered agent's name and address.
3. File a Statement of Information with the California Secretary of State: This document provides updates on the LLC's contact information, members, and managers. It must be filed within 90 days of forming the LLC and is due every two years after that.
4. Obtain any necessary licenses and permits: Depending on the nature of the business, the LLC may need to obtain specific licenses or permits from the state, county, or city.
5. Draft an operating agreement: While not required by California law, an operating agreement outlines the LLC's management structure, member responsibilities, and other important details. It is recommended that every LLC has one.
6. Obtain an employer identification number (EIN) from the Internal Revenue Service (IRS): This number is used to identify the LLC for tax purposes.

Legal requirements to be aware of when forming an LLC in California include the following:

• The LLC must have at least one member.
• The LLC must have a registered agent in California who can receive legal documents on behalf of the LLC.
• The LLC must pay an annual franchise tax of $800 to the California Franchise Tax Board. This tax must be paid regardless of whether the LLC is profitable.
• The LLC must file a Statement of Information with the California Secretary of State every two years.

Potential limitations or exceptions to the advice provided depend on the specific circumstances of the LLC's formation. For example, if the LLC has multiple members, the operating agreement may need to address buyout provisions in case a member wants to sell their interest.

Further action may be necessary if the LLC engages in certain activities, such as hiring employees or conducting business in another state. In those cases, additional legal requirements may apply.

Given the information provided, it is recommended that individuals consult with a licensed attorney to ensure compliance with all legal requirements and to address any specific concerns or questions they may have during the formation process.