$1000 Flat Fee for Forming Your California Limited Liability Company Formation
The fee includes the State filing fee and the LLC binder. After your Articles of Organization has been filed with the Secretary of State, I will meet with you and other members of your new LLC in order to prepare and finalize the operating agreement, which is like the bylaws of new LLC.
Forming a Limited Liability Company (LLC)
Start a new business and protect your personal assets by forming a Limited Liability Company (LLC). Unlike corporations, LLCs are easy to operate. You don’t have to hold annual shareholder meetings since there are no shareholders in a LLC. You also don’t have to record and keep minutes of meetings. LLCs have the same tax advantages of a corporation. LLCs can be taxed either as a corporation or have the pass-through tax effect of a partnership.
An LLC is owned by its member(s). Members are like shareholders in a corporation. Members can manage the day-to-day activities of the LLCs or elect a manager to run the LLCs. Members can appoint another member or a non-member to manage the LLCs. As of 1/1/2000 California recognized single-member LLCs. However to receive the tax advantages of a partnership, you must designate at least two members for the LLC.
In an LLC, members own the business. Members have no personal liability, unless they guarantee a debt. Professional services cannot operate under an LLC. You can have a “one-member” LLC. Members and/or managers can run the business and make management decisions. LLC require very little paperwork to manage and meetings are normally not required. An operating agreement is recommended. If an LLC does not operate under an operating agreement, general LLC law of the State will apply. By having an operating agreement, one opts out of the general LLC statute of the state. An LLC can later be converted to a Limited Partnership or a corporation. LLCs offer an excellent way for small private business to operate with little formalities, but have limited liability and pass-through taxation.
Advantages of Limited Liability Company
- PASS-THROUGH TAXATION
- Taxes pass-through to members in an LLC.
- EASY TO MANAGE
- No corporate formalities, no annual meetings or minutes.
- Shield personal assets from business creditors.