california secretary of state

Basics of Limited Liability Company Formation in California

After the United States’ Internal Revenue Service (IRS) classifies LLC as a pass-through-entity in 1988, all states passed legislations allowing the creation of LLC within their respective territories. It includes the state of California, which enacted The Beverly-Killea Limited Liability Company Act in 1996 that paves the way for the creation of the limited liability company within the California’s jurisdiction.

Initially, the California laws taxed LLC as a partnership with pass-through-entity tax treatment unless LLC owners declared to be taxed at the entity level.

What you Should Know about California LLC

LLC or Limited Liability Company has turned itself into a popular monster nowadays. Taking history into consideration, the conventional sole-proprietorship, partnership, and corporate structure existed long before LLC was created. The state of Wyoming first initiated the creation of LLC in 1977. But what makes it popular to most entrepreneurs and other business figures?

After the IRS declared the pass-through-entity classification of LLCs for tax purposes, all other states passed legislation allowing the formation of LLC in their territory. And the state of California is one of them.

LLC in California: An Overview

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