Legal Question in Business Law in California

Re: non-resident, alien member limit in LLC, part 2

If you look at subsections (x) and (ae) of California Corporations Code section 17001, you will see that, when read together, LLC members can be any combination of domestic or foreign individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, limited liability companies or other entities.

So, the answers to your three questions are, in the order asked, yes, not applicable, and not applicable.

Your difficulties will be at the IRS rules level and not the California business-entity formation level, but as far as I know they amount to little more than a requirement to do backup withholding.

Your need to ask these questions shows that you don't have the amount or kind of legal resources under retainer that are highly desirable for what you're attempting.....not so much for the choice of entity (also important) but mainly for legal advice on securities law compliance, which is a very stick wicket with easy-to-violate laws and regulations and stiff penalties. Be careful, retain a good business or securities lawyer.

Re: non-resident, alien member limit in LLC, part 2

Any number of foreign investors can take part. Many other issues you should take into account before venturing into this endeavor. Talk to your CPA as well...if you don't have one...I can recommend you some!!!

Re: non-resident, alien member limit in LLC, part 2

No, there is no such limitation. My firm has special expertise in the formation, taxation and maintenance of LLC's, and we are located near you (in San Francisco).

D. Alexander Floum is an experienced attorney and a law school professor.

The Schinner Law Group is a full-service law firm, providing assistance in business, corporate, tax, litigation, contracts, intellectual property and related areas of law.

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. Pursuant to California Rules of Professional Conduct rule 1-400(d)(4), this communication is intended as a solicitation for legal services.