Limited Liability Company
Limited Liability Companies, also called LLCs, combine the pass-through taxation of a Sole Proprietorship with the limited liability of a Corporation.
What is a Limited Liability Company?
A Limited Liability Company, also called an LLC, is a hybrid business entity that combines the pass-through taxation of a Sole Proprietorship or a General Partnership with the limited liability benefits of a Corporation. This type of entity allows owners (known as “Members”) to report their income from the LLC on their personal taxes rather than having to file separate taxes like they would for a Corporation.
Generally, a Limited Liability Company has has fewer formalities than a Corporation. This means that the Members will be less likely to accidentally violate the law by overlooking certain formalities, losing their liability shield as a result. However, in California, LLCs are required to have an operating agreement in place.
An operating agreement is an agreement amongst the Members that spells out the LLC governing procedure, the managerial duties, and financial rights of the owners of the company. Formal meetings are required only if the LLC’s operating agreement or any other governing document requires them.
Despite the absence of statutory requirements, it is strongly recommended that LLC owners hold meetings and keep accurate business records. Meetings are especially important when electing managers, admitting new members, issuing dividends, or making major business and financial decisions.
I have assisted my clients with various LLC matters, including formation, drafting operating agreements, legal consultation, and compliance. Below is a partial list of the LLC legal services I provide:
Agreements (Review, Drafting, and Negotiations)
- Operating Agreements
- Amendments to Operating Agreement
- Service Agreements
- Confidentiality Agreements
- Trade Secret Agreements
- Licensing Agreements
- Commercial Leases (Review & Drafting Only)
- Employee Agreements & Employee Handbooks
- Facilitation of Member Meetings
- Maintenance of LLC Book
- Registered Agent for Service of Process
Don’t see the LLC legal service you are looking for listed above? Give me a call today and let’s discuss your specific legal needs.
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