Author: 
Chris Walton
Subtitle: 
Under California Law, limited liability companies are required to maintain certain records and information for specified time periods
Important Tip The easiest way to comply with documentation retention requirements is to establish a policy from the outset and stick with it.

Small businesses operating as an LLC face a seemingly limitless web of rules and requirements that must be complied with.  Our job is to help your small business comply with those rules so you can focus on what matters most:  running your company.

If your small business is a limited liability corporation, then one of the rules your company must comply with is Section 17058 of the California Corporations Code, which requires LLCs to maintain certain records at the company’s office.  The required records are as follows:

(1) Member list/Contribution/Share of profit & loss: A current list of the full name and last known business or residence address of each member and of each holder of an economic interest in the company, in alphabetical order, together with the contribution and the share in profits and losses of each member and holder of an economic interest.

(2) Managers: If your company has managers, then it must maintain a current list of the full name and business or residence address of each manager.

(3) Articles of Organization: A copy of the articles of organization and all amendments to the articles, along with any powers of attorney pursuant to which the articles of organization or any amendments were executed.

(4) Tax Information: LLCs must maintain copies of the company’s federal, state, and local income tax returns and reports, if any, for the six most recent taxable years.

(5) Operating Agreement: A copy of the company's operating agreement, if in writing, and any amendments thereto, along with any powers of attorney pursuant to which the operating agreement and any amendments were executed.

(6) Financial Statements: Copies of the company’s financial statements, if any, for the six most recent fiscal years.

(7) Books and Records: The books and records of the limited liability company regading the company’s internal affairs for at least the current and past four fiscal years.

The most effective way to ensure compliance with these requirements is to establish an organized practice of document retention upon forming your business, and sticking with it.  Establish a practice of performing an annual company check-up to ensure that you retain required records in your files.

 

Additional Information
Important Tip: 
The easiest way to comply with documentation retention requirements is to establish a policy from the outset and stick with it.
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complying with LLC document retention rules