California LLC Operating Agreement

Yes, California law (Corporations Code Section 17701.10) requires LLCs to have an operating agreement. It can be oral or written, but we strongly recommend a written agreement for clarity, enforceability, and banking requirements.

California requires all LLCs to pay a minimum annual franchise tax, regardless of income. This is due by the 15th day of the 4th month after your LLC is formed, and annually thereafter. LLCs with higher revenues may owe additional LLC fees.

Yes, non-residents can form LLCs in California. However, if you're doing business in California, you'll be subject to California's franchise tax and potentially state income tax on California-source income.

Yes. Our operating agreements are accepted by major financial institutions including Mercury, Chase, Bank of America, and others. The document includes all standard provisions banks look for: member information, ownership structure, and authorization for banking activities. Thousands of our clients have successfully used our agreements to open US bank accounts.

Yes, operating agreements can be amended at any time with the consent of members as specified in the original agreement (typically majority or unanimous approval). Common reasons for amendments include adding or removing members, changing ownership percentages, modifying profit distributions, or updating management structure.

In a member-managed LLC, all members participate in daily business decisions. In a manager-managed LLC, designated managers (who may or may not be members) handle operations while other members are passive investors. Our operating agreement lets you choose either structure and clearly defines the rights and responsibilities of each role.