California Revised Uniform Limited Liability Company ActFormation: Articles of Organization and Other Filings
Section § 17702.01
If you want to start a Limited Liability Company (LLC) in California, one or more people can sign and file articles of organization with the Secretary of State. These articles must say that the LLC is for any legal activity, provide the LLC's name, principal office address, mailing address (if different), and the initial agent for legal services. If the LLC will be manager-managed or single-manager-managed, that must be stated too. Once filed, the LLC is officially formed. If the payment for filing doesn’t go through, the Secretary of State can cancel the filing after giving two notices. Additionally, filing the articles commits the LLC to pay an annual tax, as specified by the Franchise Tax Board.
Section § 17702.02
This part of the law explains how a limited liability company (LLC) in California can make changes to its foundational document called the 'articles of organization'. If an LLC wants to amend or completely restate its articles, it needs to submit specific forms to the Secretary of State, detailing current information and any changes. Amendments take effect once filed, and must be signed by a manager or member of the LLC. If anyone managing the LLC knows the articles contain incorrect information, they are required to update them quickly. However, changes to addresses or the agent for service need different forms under another section.
Section § 17702.03
This law section explains who needs to sign important documents that a limited liability company (LLC) sends to the Secretary of State. Normally, it should be signed by someone who has the company’s permission. For starting a new LLC, at least one organizer must sign. If an LLC has shut down and has no members, the person handling the closure should sign. If certain organizers are deceased, their representative can sign on their behalf. For cancellations and corrections, origal signatories or agents can sign. Copies of these documents can be recorded at a county recorder's office. If the Secretary of State returns a document saying it doesn’t follow the rules, an attorney can argue why it should be approved when resubmitting it.
Section § 17702.04
If someone is supposed to sign and submit a document to the Secretary of State in California but doesn't, another person affected by this can ask the court for help. The court can order the person to sign or deliver the document, or allow the document to be filed without a signature. Also, if the person asking for the court's help isn't the business related to the document, they must include the business as part of the legal action.
Section § 17702.05
This section talks about how business records should be submitted to the California Secretary of State for approval and filing. The record needs a clear title explaining its purpose and must follow the state's rules for submission. Once submitted and fees are paid, it gets filed unless laws aren't followed. People can request and pay for a certified copy of the record. Most records can choose a start date that is delayed, but it can't be more than 90 days after it's filed. If a delay is chosen, a certificate can cancel it before it starts. For mergers, only one party needs to file a cancellation if they change their minds. If nothing is done, the record or merger becomes active on the planned date.
Section § 17702.06
If a limited liability company (LLC) or foreign LLC realizes that a document they filed with the Secretary of State had mistakes or errors, they can file a 'certificate of correction' to fix those issues. This correction form can't set a later effective date and must include specific details, like the company's current name, the original document's title and date, details of what's wrong, and necessary corrections. The process to correct the document follows the same signing rules as the original. Once the correction is filed, it works as if it had been correct all along, unless someone relied on the incorrect version to their detriment.
Section § 17702.07
If a record filed with the Secretary of State in California contains incorrect information, anyone harmed by relying on that information can seek compensation from the person who knowingly signed it, or from certain members or managers of the limited liability company who had enough time to correct the error but didn't. If a company's operating agreement assigns responsibility for maintaining accurate records to specific members, only those members are liable, not the member relieved of this duty. Additionally, anyone signing these records confirms their accuracy under penalty of perjury.
Section § 17702.09
This section requires all limited liability companies (LLCs), both local and foreign ones doing business in California, to submit a statement of information to the Secretary of State. They need to do this within 90 days of their initial registration and every two years after that. The statement must include details like the company's name, file number, addresses, the names of managers or members, and the principal type of business. If the company prefers, they can receive communication by email instead of regular mail. If any information changes, especially regarding agents, the LLC must file an updated statement. If the submitted forms are missing required information, the Secretary of State will send them back for correction. This section became effective on January 1, 2022, or when the state's Business Connect system is implemented, whichever came first.
Section § 17702.10
This section explains how documents are officially filed with the California Secretary of State. When a document is received with the fee, it's filed on that date unless the filer requests a delay of up to 90 days or it needs to be coordinated with another filing. Documents can also be filed for a specific future date if requested at least one business day in advance, even if the requested date is a weekend or holiday. After filing, the Secretary of State can photograph or digitally store the document and then destroy the original, and these copies can be used as evidence in court.