An Introduction To California Limited Liability Companies

In United States, a limited liability company, also written as LLC or L.L.C, is termed as a legal type of Business Company, which offers restricted liability to all its owners. A limited liability company is almost similar to a corporation but provides more flexibility in terms of ownership. A LLC is generally suited to smaller companies that have confined number of owners. Among various limited liability companies existing in US California Limited Liability Companies are one of the most sought after LLC's.

There are some important aspects of California Limited Liability Companies. One of these aspects is their asset protection. A beneficial way of separating and protecting personal asset from various business obligations is to form a Limited Liability Company (LLC). In order to make a LLC, you are not required to be a United States citizen or a California resident. Also, an LLC can be started with only one member in California. There are some requirements that have to be fulfilled by all California Limited Liability Companies. A California limited liability company should file an initial report with the California Secretary of State within ninety days of the origination of company. This initial report is known as Statement of Information. This report is then due to the state every second year by the anniversary date of the company. The California Franchise Tax Board has estimated $800 as a flat franchise tax fee for all these companies. The 15th day of the 4th month since the formation of the company, is the day on which the initial franchise tax is due. However, all the annual taxes have to be paid in advanced, by the 15th day of the 4th month; every tax year. The California Limited Liability Companies are also required to pay an extra fee on the annual income, if it exceeds $250,000.

Another aspect of these LLC's is their operation in multiple states. If you are a limited liability company owner and want to do business in more than one state or are planning to transact in the states where your LLC is not based, then most likely you will need to qualify, in order to fulfill your wish. It is very important to note that not every business may get permission to form a limited liability company in California. The professional licensing agencies working in California forbid those businesses that offer some kind of professional services, like law and medicines, to form a limited liability company. So, if you plan to be the owner of one of the California Limited Liability Companies, then you should contact the California agency. They will provide you with professional license and guidance related to suitable entity type for your business.

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