Articles of Organization

• All California LLCs must complete and file articles of organization with the Secretary of State. The filing fee is $70.
  
  The Secretary of State's website offers a blank articles of organization form. On the form, you are required to list your LLC's name, purpose and management structure. A registered agent, someone over the age of 18 who can receive service of process (i.e., legal papers), must be identified. If an individual is listed as the registered agent, that individual must reside in California.
  
  

Operating Agreement

• All California LLCs must enter into an operating agreement. The operating agreement does not need to be filed with the Secretary of State, but a copy (and any amendments thereto) of the operating agreement must be kept at the LLC's principal place of business.
  
  An operating agreement describes how the LLC will be organized and managed. Members are identified and their responsibilities are explained. The document also addresses how profits and losses will be divided among members as well as how meetings and voting will be conducted. An operating agreement can also state how the LLC can be dissolved should the members desire to terminate business.
  
  

Statement of Information

• Within 90 days of filing your LLC's articles of organization, you must file a Statement of Information with the Secretary of State. The filing fee is $20.
  
  The blank form, available on the Secretary of State's website, includes easy-to-follow directions. In addition to identifying the LLC's name, principal place of business, registered agent and type of business, you must list the name and address of each LLC manager. If the LLC has not elected or appointed any managers, list the name and address of each LLC member. A Statement of Information must be filed every two years after the original statement is filed.
  
  

Payment of Franchise Tax

• California LLCs are subject to an annual franchise tax. In 2010, the LLC tax was $800. The franchise tax is separate from other federal, state and local taxes that may be applicable to the LLC. The annual franchise tax payment is due by April 15. To pay the franchise tax, complete the LLC Tax Voucher (Form FTB 3522), enclose your payment and mail it to the California Franchise Tax Board. Failure to mail payment in a timely fashion can result in late payment penalties, including interest owed.
  
  

California LLC Requirements In General

• An extensive list of California LLC requirements can be found in Title 2.5 of the California Corporations Code. There are 14 chapters covering topics such as membership, management, finance, assignment of interests, dissolution and merger. Chapter 2 (Sections 17050-17062) addresses all aspects of LLC formation in California.
  
  The California Code is updated from time to time. Utilizing the California Legislative Information website to access the California Corporations Code ensures you are consulting the most recent version of the law because its database is updated to reflect the most recent amendments.