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Why Articles of Incorporation are Needed for California Businesses

Posted On : Sep-19-2011 | seen (666) times | Article Word Count : 407 |

Lawyers and companies legally declare their intentions to establish a Limited Liability Company (LLC) by using the California Articles of Organization (AO) form.
Lawyers and companies legally declare their intentions to establish a Limited Liability Company (LLC) by using the California Articles of Organization (AO) form. The document is signed by all the LLC’s members and then filed with the office of Secretary of State.

Similar to a charter, the LLC’s Articles of Organization establishes the reality of the LLC in the state of California and sets specific fundamental details about the new business. The document summarizes the identification and operation features of the LLC, which is legally created as a registered business by the AO, after the document has been filed and the state has approved it.

Basic Information Included in the Document

Regardless of the size, or category of the new business, the AO must include the LLC’s name and primary address. Then to avoid restricting the LLC’s business potential, its ideals are stated in far-reaching terms, in essence that it has the right to involve itself in lawful activity. The AO includes the name and address of the registered agent who is authorized to personally accept and handle specific legal documents delivered on behalf of the AO. At the time of filing, names of members and managers, if known, are placed on the AO. Articles of Organization California LLC will generally specify the organizer (s), who launched the structuring process. The organizer (s) was generally responsible for signing the document before it was filed with the state.

Composing the Document Easy

Whether you have an attorney to write your LLC’s AO, or write them yourself, the process can be quite simple. Regardless, the Secretary of State’s Internet web site has an Articles of Organization California form that you can fill out, or ask for preprinted forms from the Secretary of State office that you can take with you and fill out.

Why California Businesses Need This Document

The AO is necessary for your new corporation’s tax purposes. Also, a written operating agreement protects you and your fellow members’ interests and avoids disputes. Nonmember spouses of a member must agree to the operating agreement terms, and that it is factual that the member spouse is the person related to the business. Because California is a state that recognizes community property, all of a deceased member’s rights would automatically transfer to the widow, or widower. Unfortunately, the other members may not be too happy being forced to compromise under those conditions.

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