Forming A Limited Liability Company (LLC) In California

One of the most common and favored business entities is the limited liability company (LLC). As its name suggests, liability protection is a key feature of the LLC. Owners of LLCs do not put their personal assets at risk. If the company is sued or collection actions are taken against it, only the assets of the business are typically at risk.

LLCs provide the favorable tax structure of a partnership, with the liability protection of a corporation. The combination of these features has made it a popular business entity for business owners throughout California and across the U.S.

LLC Operating Agreements

A key step in establishing an LLC is creating an operating agreement. These agreements address important aspects of the business, including:

  • Rights and responsibilities of owners
  • How profits and losses are to be allocated
  • A framework for resolving disputes
  • How new members are to be admitted

Even if you are the only owner, establishing an operating agreement will help ensure that courts respect your limited liability status. Without such an agreement in place, your personal assets could be at risk in the event of a lawsuit.

Talk To An Attorney About Creating An LLC In Orange County

I establish LLCs for clients in Orange County and throughout Southern California. Contact my law office today online or by telephone at 714-955-4976 to arrange a free initial consultation.