LIMITED LIABILITY COMPANIES ("LLCS") NOW PERMITTED TO HAVE ONE MEMBER

Assembly Bill No. 831, enacted on September 27, 1999 and effective January 1, 2000, provides for three major changes to the laws governing the formation and operation of a limited liability company. First, the new law amends Section 17050 of the Corporations Code to now permit the formation of a single-member limited liability company in California. Second, the act provides that the limited liability company shall be subject to the liability provisions of Corporations Code Section 17101. Finally, the law provides that all members of the LLC will be subject to the same conditions regarding personal liability as a limited liability company with two or more members.

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