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Limited Liability Companies, LLCs, first became available in the United States in Wyoming in 1977. Most states did not follow allowing Limited Liability Companies, LLCs, until the 1990s. In the past 10-15 years Limited Liability Companies, LLCs, became very popular in California. Limited Liability Companies, LLCs, are governed by the California Corporations Code in the California Revised Uniform Limited Liability Company Act (“LLC Act”).

When forming and operating a Limited Liability Company, LLC, it is imperative that you or your counsel abide by the LLC Act. The Law Office of Eric J. Proos, P.C. has read the act word-for-word, advises LLC clients daily, and has formed hundreds of Limited Liability Companies, LLCs.

Call Eric Proos, Los Angeles Business Attorney, today to discuss Limited Liability Companies, LLCs.

General Characteristics of Limited Liability Companies, LLCs

Limited Liability Companies, LLC, are very popular for a number of reasons. First, Limited Liability Companies, LLC, are easier to form and less formal than corporations. Second, Limited Liability Companies, LLC, provide protection from personal liability. Third, Limited Liability Companies, LLC, can provide some tax benefits compared to corporations.

  1. Limited Liability Company, LLC, filing: Filing for an LLC is quite simple and involves two main forms that must be filed with the state. The first is Form-LLC 1. (Watch this video to learn how to complete Form-LLC 1). This form constitutes the Articles of Organization. Check out this video to learn more about Articles of Organization. The second form that must be filed within 90 days of filing Form-LLC 1 is the Statement of Information.
    1. The price to file Form-LLC 1 with the State of California is $75 dollars. You must also be prepared to pay a minimum $800 yearly tax for your Limited Liability Company, LLC.
    2. Along with filing the paperwork with the state Limited Liability Companies, LLCs, should have an operating agreement and buy/sell agreement, discussed here.
  2. Limited Liability Companies, LLCs, offer personal liability protection: Limited Liability Companies, LLCs, offer the members of the LLC personal liability protection. This protects the members from legal and financial liability. The LLC does not offer unlimited protection. Be aware that a member can become personally liable for actions.
  3. Taxes and LLCs: As discussed previously there is a yearly, minimum Limited Liability Company, LLC, tax of $800 that must be paid. Any income the Limited Liability Company, LLC, earns is treated as pass through income, and the owners are burdened with paying taxes. However, a Limited Liability Company, LLC, can elect to be taxed as a corporation. In which case the Limited Liability Company, LLC, then must file a tax return as a corporation, speak with your CPA.

Forming and operating a Limited Liability Company, LLC, within the LLC Act can be complicated. The Law Office of Eric J. Proos, P.C., forms your LLC with care, detail, and catered to your business. We do not provide a boilerplate operating agreement for your LLC, we cater it to your business, industry, and desires.

Call Los Angeles Business Attorney, Eric Proos today to discuss your Limited Liability Company, LLC, at (213) 784-3640.

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