California Multi-Member LLC — Formation & Governance Guide

A multi-member California LLC provides liability protection for multiple owners with flexible governance. California's default profit allocation (based on contributions, not equal) and community property implications make a well-drafted operating agreement essential. See all LLC types or our formation guide.

California-Specific Multi-Member Considerations

Profit/loss defaults : Allocated based on agreed value of each member's contributions — NOT equally. Similar to New York but different from Texas (which defaults to equal).

Community property: Both spouses may have interests in a multi-member LLC through community property. Address this in the operating agreement with spousal consent provisions.

Form 568: Multi-member CA LLCs file Form 568 (due March 15, or September 15 with extension). The LLC pays the $800 franchise tax and any LLC fee at the entity level.

LLC fee based on combined gross income: The revenue-based LLC fee ($900-$11,790) is calculated on the LLC's total CA-source gross income — all members' revenue combined.

FAQ

Can a California LLC have unlimited members?

Yes. No maximum member limit.

Does each member owe $800 separately?

No. The LLC entity pays one $800 franchise tax. Members pay state income tax on their allocated share — separate from the entity-level $800.