Do I need to file my operating agreement with the state of California?

Do I need an Operating Agreement too? Yes. The California Articles of Organization are important – it’s the document that officially forms your LLC with the Secretary of State.

How do I remove a partner from my LLC in California?

The only way a member of an LLC may be removed is by submitting a written notice of withdrawal unless the articles of organization or the operating agreement for the LLC in question details a procedure for members to vote out others.

How do I change the percentage of ownership in an LLC?

With an LLC, you probably won’t need to file updated paperwork with your state, but that depends on whether or not your original incorporation paperwork included the names and ownership percentages of your partners. If it does, you’ll need to fill out an amendment with the new names and percentages.

How often do I have to file a statement of information in California?

A Statement of Information must be filed either every year for stock, cooperative, credit union, and all foreign corporations or every two years (only in odd years or only in even years based on year of initial registration) for domestic nonprofit corporations and all limited liability companies.

What happens if a California LLC does not have an operating agreement?

Absent a well written Operating Agreement, California law provides that the profits and losses of the LLC will be distributed equally amongst its owners, even if each member’s investment in the LLC connotes a different distribution allocation.

Can an LLC operate without an operating agreement?

An LLC Operating Agreement is Not Compulsory, but it is Highly Recommended. An LLC operating agreement is not necessarily compulsory, although this depends on the state where your business is based. It is recommended that all LLCs have operating agreements, even if you are the sole owner of the company.

Do LLC members have equal ownership percentages?

Members usually receive ownership percentages in proportion to their contributions of capital, but LLC members are free to divide up ownership in any way they wish. These contributions and percentage interests are an important part of your operating agreement.

How do I transfer ownership of an LLC in California?

There are two common ways to transfer LLC ownership in California. You can either sell the entire LLC to a third party or conduct a partial sale (also known as a buyout).

Who has to file a statement of Information in California?

Every legal entity registered in California must file a Statement of Information. Each newly formed or registered legal entity must file the first Statement of Information within 90 days of filing the original Articles of Incorporation (or Articles of Organization).

Can attorney file statement of Information in California?

This can be a member/manager, officer/director, secretary, treasurer, or someone you employ (such as an attorney) to file on your business’s behalf. Or, you can hire Northwest Registered Agent to complete and file your California Statement of Information for you!