California Limited Liability Company
The California Limited Liability Company is a legal type of Business Company that provides limited liabilities to their owners in California. This type of company is very much identical to a corporation and is considered as a flexible type of ownership best suited for the small companies having limited owners. The California Limited Liability Company houses a number of members.
The business owners who operate in California will be on advantage by forming a Limited Liability Company for protecting as well as separating their personal assets from the business obligations. It is not necessary that one must be a resident of California to form a Limited Liability Company there.
The operating agreement governs the formation of the California Limited Liability Company. The owners of the company are referred to as members and not partners. Here the number of members is unlimited and these members may either be corporations, individuals or other Limited Liability Companies.
The California Limited Liability Company has to file the initial reports and the articles of organization with the Secretary of California within a period of ninety days after forming the company. This agreement should contain the name of the California Limited Liability Company The California Limited Liability Company, its purpose describe the type of business constituting the business activity of the company and a statement indicating that the company will be managed by one manager or more than one manager, single member or all members of the company. The company will also be assessed to an additional fee on its yearly income, if it exceeds $250,000. The California Limited Liability Company possesses the elements of both corporations and that of partnership. Here, the partners are offered the protection from individual liabilities like that of a partnership and it also allows others to become members only if the other members agree to similar to corporations. The California Limited Liability Company can be set up with only one natural person involved. There is no need for a general meeting of the members to be held every year. The board of directors never loses their powers. It has very less administrative paperwork and record keeping as compared to that of the corporation. The California agency that is responsible for the enforcement as well as the administration of the California corporate is referred as the Franchise Tax Board. A guide to the corporations will be send by these boards commencing the business in California.
|