Business Filing Company SunDoc Filings Notifies Clients of New Requirements for Dissolving California Limited Liability Companies

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New requirements affect LLCs files in the state of California.

SunDoc Filings (https://www.sundocumentfilings.com), a leading provider of business filing services, has notified its clients of new rules governing the operation of limited liability companies (LLCs) formed within the state of California. Called a Jurisdictional Update, the new rules from the California Secretary of State affect how members of an LLC can dissolve the company.

Under California’s new rules, the minimum vote required to dissolve a limited liability company has changed to 50 percent or more of the voting interests of its members. In the past, California required a majority of the voting interests to approve dissolution.

“This may sound like a small change, but it’s actually quite significant,” says Stan Huser, President of SunDoc Filings. “It means that if the LLC membership is divided and the vote ends in a tie, then the company is dissolved. In past years, a tie vote would not have been enough to dissolve the company.”

A Limited Liability Company is a form of enterprise that provides many of the same liability protections enjoyed by corporations, while allowing for greater operating flexibility and simpler tax filing. Entrepreneurs who form an LLC are required to file papers with the Secretary of State within their home state. The LLC must operate under the rules defined by its home state.

Limited liability companies are owned by one or more members, and all members are assigned voting interest in the company.

“It’s not unusual for an LLC to have an even number of members, each of whom has an equal voting interest in the company.” says Huser. “In those situations, a tie vote can occur.”

California’s new rules became effective on January 1, 2017 and govern all LLCs formed with the state.

Huser cautions that the new rules only affect the dissolution of LLCs. But he encourages entrepreneurs and lawyers to be aware of the changes.

“Entrepreneurs are focused on their business, not on the legal paperwork,” says Huser, “Unfortunately that makes it easy for them to get blindsided by regulations.”

About SunDoc Filings

SunDoc Filings is a nationwide provider of business filings services, including incorporation, LLC formation and Certificates of Good Standing. Located in Sacramento, the company specializes in expedited services for California. The company has been in business since 1999 and holds an A+ rating from the BBB. For more information, visit their web site at https://www.sundocumentfilings.com. Follow SunDoc Filings on Facebook (https://www.facebook.com/SunDoc-Filings-297603343607550/) or Twitter (https://twitter.com/SunDocFilings).

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Stan Huser
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