Forming a limited liability company (LLC) and maintaining its books and records may seem like simple tasks at first. However, seemingly straightforward formation and drafting decisions or the failure to keep proper records can have far-reaching consequences. For example, how the LLC's organizational documents are drafted can have a significant effect on the members' rights and on the members' and managers' exposure to liability.

When forming a California LLC, organizers must, among other things:

Maintaining an LLC in good standing after formation calls for careful attention to reporting and filing requirements in California. Failure to comply with certain actions required by California law, such as proper record keeping, can impact the LLC's status as a separate legal entity, which may expose the members and managers to liability.

This Toolkit provides certain key resources to help counsel form, maintain, and dissolve a California LLC.

Consider the applicability of reporting requirements under the Corporate Transparency Act (CTA) in connection with LLC formation, governance, or dissolution. For more information on the CTA, see Practice Note, Corporate Transparency Act Beneficial Ownership Reporting, Corporate Transparency Act (CTA) Rules and Publications Tracker, and the Corporate Transparency Act (CTA) Toolkit.