Limited Liability Companies
The passage of California’s Beverly-Killea Limited Liability Act on September 30, 1994, changed the way California businesses obtained corporate protection. On January 1, 2014, the Revised Uniform Limited Liability Company Act (RULLCA) became effective thereby replacing the prior law governing LLCs. Whether or not your LLC was created prior to January 1, 2014, RULLCA is the law of the land in California. A limited liability company is treated like a partnership for income tax purposes and like a corporation for liability purposes. LLC’s permit one or more owners to carry on a business and, with few exceptions, none of the owners have personal responsibility for the obligations of the business. At Booke & Ajlouny, we can help you understand if an LLC is right for your business. If it is, we create the LLC and prepare operating agreements through which all of the participants in the LLC will be managed. We can also advise on how RULLCA changed your obligations under an existing LLC.