Agent for service of process: A California limited liability company must designate an agent for service of process in the state. Corporations designated as an agent for service of process must file an instrument with the Secretary of State. An address is unnecessary in the instrument for the agent for service of process.
Annual tax: This refers to the $800 Annual Tax assessed by the Franchise Tax Board for transacting intrastate business activities. LLCs must pay the annual tax by the 15th day of the 4th month of the tax year.
Articles of Organization: The Articles of Organization for a limited liability company or foreign limited liability company are filed with the California Secretary of State. The articles give the right of the LLC to transact business and carry out its operations.
EIN: This acronym stands for Employer Identification Number. See the term.
Employer Identification Number: or EIN. The Internal Revenue Service (IRS) issues federal identification numbers called Employer Identification Number (EIN) and administers federal payroll and income taxes. This includes social security, Medicare, federal unemployment insurance and federal income tax withholding.
FTB: This acronym stands for Franchise Tax Board. See the term.
Franchise Tax Board: or FTB. This is the organization to whom limited liability companies and foreign limited liability companies must submit the $800 Annual Tax.
Limited liability company: There are two types of limited liability companies: domestic and foreign. There are additional types: manager-managed and member-managed LLCs. See these two key terms.
LLC: This acronym stands for limited liability company. See the term.
LLC fee: This refers to the California limited liability company fee for total income derived or attributable to California sources. LLCs must pay the annual fee by the 15th day of the 6th month of the current tax year.
Manager-managed LLC: This means that the managers hold more than 50 percent interest in the LLC.
Member-managed LLC: This means that the members hold more than 50 percent interest in the LLC.
Operating agreement: The limited liability company operating agreement defines the manner with which to organize and manage the limited liability company or foreign limited liability company. The operating agreement is maintained by the limited liability company.
Prepay Account: LLC organizers can establish a prepaid account to check name availability of a proposed limited liability company in California. The prepay account requires a $100 minimum deposit.
Principal office: Limited liability companies and foreign limited liability companies must maintain an office in California and an agent for service of process.
Registered agent: The registered agent of a limited liability company or foreign limited liability company is the agent for service of process. An agent for service of process is an individual who resides in the state of California and who can receive court papers if the limited liability company or foreign limited liability company is sued.
Secretary of State: This refers to the California Secretary of State to which forms limited liability companies and foreign limited liability companies must submit.
Service of process: Limited liability companies and foreign limited liability companies must maintain an agent for service of process. The agent for service of process for a California limited liability company must be an individual who is a resident of California. The agent may be a corporation with the capacity to act as an agent.
SOS: This acronym stands for Secretary of State.
Statement of Information: The limited liability company or foreign limited liability company must file a Statement of Information with the California Secretary of State. There are different fees for domestic and foreign: domestic ($20) and foreign ($25).
