When do I have to pay the Annual LLC Tax?
May 7, 2008
The annual LLC tax is due and payable on or before the 15th day of the 4th month after the beginning of the LLC’s taxable year (fiscal year) or April 16, 2001 (calendar year). The first taxable year of an LLC that was not previously in existence begins when the LLC is organized. For example, if the Articles are filed on June 1, 2001, the annual LLC tax is due on September 15, 2001.
Does a LLC require more than one member?
May 7, 2008
Recent changes to the California LLC law permit one-member LLCs. Prior to Jan. 1, 2000, California law required at least two LLC members.
Is it cheaper to form the LLC in Nevada?
May 7, 2008
If the LLC will own real estate in California, it must be formed or qualified in California. Forming the LLC in Nevada would result in additional cost. Read more about the costs of LLC
Why does my lender require a bankruptcy-remote, separate entity?
May 7, 2008
“Special purpose entities” (SPEs) are used to minimize a lender’s risk of the borrower filing a bankruptcy petition. The lender wants to avoid the situation where a performing loan and property becomes entangled in a Chapter 11 proceeding involving other non-performing loans or properties, simply because multiple properties are owned by a single entity.
How does a LLC sign a document?
May 7, 2008
ABC, LLC, A California limited liability company
By: __________________________
John Smith, Manager
- OR -
ABC, LLC, a California limited liability company
By: The Smith Company, Inc., a California corporation, Manager
By: __________________________
John Smith, President
By: __________________________
Jane Smith, Secretary
What is the difference between authorized shares and issued shares?
May 7, 2008
The Articles of Incorporation must designate the number of shares of stock that the corporation may issue to shareholders. The shares are issued to shareholders in the corporation’s first minutes. The number of shares actually issued to shareholders are referred to as the “issued” shares of stock. It is good practice for the number of “authorized” shares to substantially exceed the number of shares that have been actually “issued” to shareholders to enable the corporation to engage in future transactions (e.g., issuing shares to a key employee, stock split, etc.)
How many directors are required?
May 7, 2008
A corporation is required by law to have at least three directors. However, the corporation may have one director if the corporation has only one shareholder; and the corporation must have at least two directors if the corporation has only two shareholders. If the corporation has a variable number of directors (e.g, no more than 7 and no less than 5), the maximum number cannot be more than twice the minimum.
What officers are required?
May 7, 2008
California law requires that each corporation must have a president, a secretary, and a chief financial officer. We typically also provide for at least one vice president. California law permits a single person to hold multiple offices – in many cases, a single person acts as each of the officers.
Is a corporate seal required?
May 7, 2008
No. A corporate seal is no longer required in the state of California. However, some organizations (e.g., lenders) continue to require a seal, so we can provide one if necessary.
What is a principal place of business?
May 7, 2008
A corporation is required to designate its principal executive office in the Statement of Information that must be filed with the Secretary of State within 90 days after incorporation.
