Legal Question in Business Law in California

Starting a Two Person LLC in California

A quick look into my background, I've been involved in many small start-up companies before however I was never actually the owner, even though I did heavy administration of the company.

I'm looking to start a two person LLC in California. I went to LegalZoom (I can hear lawyers cringe already) and the problem I had is when it came to Salary.

It asked what me and the other person were going to get for a yearly salary, however from what I read - a small LLC does not need that.

(We're going to be an online company that is involved in transactions)

So, what do I do? If this sounds humorous to those who are more well versed in law, I'll be happy to clear anything up.


Asked on 5/21/09, 5:03 pm

3 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Starting a Two Person LLC in California

If you're asking what attorneys think you should be paid, you're looking in the wrong place. All those issues are things the 'owners' have to agree upon as part of the start up documentation and contracts. You need actual legal guidance in setting up the company, not just some 'forms' you don't know how to deal with properly, but only you can decide what terms you are willing to work under.

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Answered on 5/22/09, 2:26 pm
Terry A. Nelson Nelson & Lawless

Re: Starting a Two Person LLC in California

If you're asking what attorneys think you should be paid, you're looking in the wrong place. All those issues are things the 'owners' have to agree upon as part of the start up documentation and contracts. You need actual legal guidance in setting up the company, not just some 'forms' you don't know how to deal with properly, but only you can decide what terms you are willing to work under. If you are serious about getting such help, feel free to contact me.

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Answered on 5/22/09, 2:27 pm
Cathy Cowin Law Offices of Cathy Cowin

Re: Starting a Two Person LLC in California

First of all, I'm seeing a lot of folks using LegalZoom and I don't have a major problem with it except that its a basic service and so you'll get what you pay for. No, you don't have to set up a yearly salary for anyone. Yes, there are a lot of considerations when starting a new business such that consultation with an attorney can be valuable and is the best practice. Being able to adequately give birth (whether to a baby or a new business) does not necessarily prepare you for parenting.

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Answered on 5/21/09, 5:10 pm


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