HOW TO INCORPORATE

LLCs Require More Warm Bodies in California

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Has California law changed recently to allow formation of an LLC with just one member? No. Some more information for you to go--or stop--on.

California is one of five remaining states that has not made the switch to which you refer, and it does not appear that the State of Fruits and Nuts will change its law anytime soon.

In fact, the state remains downright unfriendly to limited liability companies. Not only is California keeping the two-person rule, but it charges LLCs a fee of $800 per year regardless of how much money the LLC makes; this fee is way out of kilter, much higher than any other state..

Consider using your spouse or other family member to create a two-person LLC. And take heart in knowing that a small businessperson who can get adequate protection by purchasing adequate liability insurance may not want or need to form an LLC.

Copyright 1999 Nolo.com, Inc.

Last updated: Oct 22, 1999




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