Question: My California limited liability company was formed before January 1, 2014, the date California’s new LLC act became effective. Do I have to amend the LLC’s Articles of Organization filed with the California Secretary of State?
Answer: If a manager managed California LLC was formed before 2014 and its Articles of Organization do not state that the LLC is managed by a sole manager or by more than one manager, the LLC must amend its Articles of Organization and specify the type of management. California Revised Uniform Limited Liability Company Act Section 17702.01(b)(5) states “If the limited liability company is to be manager-managed, the articles of organization shall contain a statement to that effect.”
To amend your California LLC’s Articles of Organization file one of the following documents with the California Secretary of State:
Warning: If you want your California LLC to be manager managed the Operating Agreement must also contain certain manager managed language. Stated another way, a California LLC is member managed unless the following two conditions are satisfied:
- The Articles of Organization state the the LLC is manager managed, and
- The Operating Agreement contains the statutorily required manager managed language.
See California RULLCA Section 17704.07(a).