California Single Member Llc Operating Agreement: Fill & Download for Free

There are a lot of "it depends" involved in this answer, but one of the major points is whether you are talking about a single member LLC or multi-member LLC (member being the owners of the company). Below are some good points to consider, but as Madhu points out, an Operating Agreement is the MOST IMPORTANT document in an LLC. If you have multiple owners of the LLC then you should definitely consult a lawyer when dealing with the more important points described low.Single Member LLC Operating AgreementThe Basics - Single member LLC agreements are very straight forward since you are not involving other parties. You will just need to deal with the basics like the company name, term of the company (usually perpetual) and purpose of the LLC. Again, nothing too complicated as long as there are no other owners.Single Member LLC Template (for California)Multi-Member LLC Operating AgreementThe Basics - Multi-member LLC Operating Agreements are much more complex because they deal with the relationships of the owners and how the owners will run the company. It contains many of the same concepts found in a shareholder rights agreement. Some of the more important things covered in this agreement are: voting rights of the members, how additional owners are added to the LLC, what the initial money will be that each owner must pay into the LLC, how and when additional money must be or can be put into the LLC, what is done with the profits and losses of the LLC, who will run the day to day operations of the company and how are these individuals choosen (typically called "Managers"), will the managers be paid, and how are records kept and who has access to them. Therefore DO NOT use a single member LLC operating agreement for a multi-member LLC.Multi Member Manager Managed LLC template

Congrats on stating your own business!I think this may help. It is an easy to file Guide on How to Form an LLC in California. It will show you the exact steps to take to form a single-member LLC.Below are some of the highlights:Select a Name for Your LLC - Now that you’ve asked the question how to form an LLC in California, you can think about naming your LLC as the first step for forming it.Select a Registered Agent - A registered agent must be an adult or a company with a physical address in California that can be available from 9 A.M. to 5 P.M. Monday through Friday.Have a Business Lawyer Prepare Your Articles of OrganizationHave a Business Lawyer Draft Your LLC Operating Agreement California - California requires every LLC to have an operating agreement and it is one of the most important documents you’ll ever prepare for your LLC.Get an Employer Identification Number (EIN) from the IRSOpen a Bank Account for the LLC - open a bank account in the LLC’s name to handle all business transactions.Prepare and File Form LLC-12 Statement of Information - California law requires LLCs to keep their public record updated by filing a Statement of Information with the California Secretary of State.Pay the Annual $800 Fee to the California Franchise Tax Board - The $800 minimum tax prepayment is due by the 15th day of the 4th month after LLC formation. The next tax year, the $800 minimum tax is due on April 15. So if you form an LLC on December 1, and you file taxes on a calendar year basis, the $800 minimum tax is due by March 15. Another $800 payment would be due again on April 15.Determine the Tax Status for the LLC - In most cases, your LLC can be classified as a sole proprietorship, a partnership, a C Corporation, or an S Corporation for tax purposes.Apply for Any Necessary Permits and Licenses - Depending on your city and county in California, you may need a business license to do business. The state of California may also require you to be licensed if you’re going to perform certain services.If you have any more questions about forming a California single member you can email me directly at [email protected] can read more about how to start an LLC in California here: How to Form an LLC in California: A Step-by-Step Guide

California Corporations Code Section 17701.02(s), in relevant part, defines an LLC operating agreement as follows:“Operating agreement” means the agreement, whether or not referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in subdivision (a) of Section 17701.10. The term “operating agreement” may include, without more, an agreement of all members to organize a limited liability company pursuant to this title.Interestingly, there is no statutory provision stating that an LLC must have an operating agreement!That said, it is a good idea even for a single-member LLC to have one, in writing, if for no other reason than to use compliance with formalities as a defense to an “alter ego” allegation that could lead to personal liability for the member.BTW, as disclosed in the question details and discussed in my answer to your other question (Dana H. Shultz's answer to Who is considered as a member in an LLC in CA?), if you are giving equity interests to others, then you have a multi-member, rather than single-member, LLC.