In certain situations, it may be advantageous for a business to operate in California as a foreign LLC rather than as a domestic LLC. Because the laws of a foreign LLC's state mor organization will govern its organization and internal affairs and the liaibility of members and managers, a foreign LLC may offer benefits not available to members of a California LLC says California business attorney Steven C. Peck.
Examples of advantages are operation with one member, or an alternative standard for piercing the veil of protection from liability afforded members, California business lawyer Steven Peck states.
However, the foreign LLC must still regiater in California and is subject to the gross income fee. Additionally, forming an LLC in another state to conduct business in California may create new problems, such as the loss of the federal intrastate securities exemption.
Contact Steven Peck's Premier Legal to talk to an experienced Los Angeles Business lawyer toll free at 1.866.999.9085 and visit us on-line at www.premierlegal.org.
