LLC (Limited Liability Company)

A limited liability company (LLC) is a flexible business entity combining the limited liability of a corporation with the pass-through taxation and operational simplicity of a partnership. Owners (members) are not personally liable for the LLC's debts.

California LLCs are formed by filing Articles of Organization with the Secretary of State and adopting an operating agreement that governs management, distributions, voting, and exit rights. The state charges an $800 minimum franchise tax plus a gross-receipts fee at higher revenue tiers.

LLCs are the right structure for most small California businesses, single-member operating companies, real-estate holding entities, professional services (with care for licensing rules), and family enterprises. We form LLCs and draft operating agreements that anticipate growth, exits, and disputes.