EstatePass
ca-business-orgBusiness Organization & Employmenteasy

In California, which business entity requires the filing of Articles of Organization with the Secretary of State?

Correct Answer

B) Limited Liability Company

LLCs require Articles of Organization. Corporations file Articles of Incorporation, while partnerships may file different documents or operate without state filing.

Answer Options
A
Corporation
B
Limited Liability Company
C
Limited Partnership
D
General Partnership

Why This Is the Correct Answer

A Limited Liability Company (LLC) is formed in California by filing Articles of Organization with the Secretary of State under the California Revised Uniform Limited Liability Company Act. This is the founding document specific to LLCs.

Why the Other Options Are Wrong

Option A: Corporation

Corporations file Articles of Incorporation β€” not Articles of Organization β€” with the Secretary of State. The naming difference is legally significant and frequently tested.

Option C: Limited Partnership

A Limited Partnership files a Certificate of Limited Partnership with the Secretary of State, not Articles of Organization.

Option D: General Partnership

A General Partnership does not require any filing with the Secretary of State to exist in California. It can be formed by agreement alone, with no state registration required.

Memory Technique

Match the 'O' words: LLC files Articles of 'Organization' β€” both LLC and Organization start with letters that look like a circle (O), representing the flexible, member-managed structure of an LLC.

Was this explanation helpful?

More ca-business-org Questions

A contractor is bidding on a public works project in Los Angeles County with a contract value of $2,000,000. The prevailing wage determination shows carpenter wages at $45.50 per hour. What additional amount must be paid for health and welfare benefits?

A construction company has 15 employees working on a project. One employee suffers a work-related injury. Under California law, what is the primary difference between Cal/OSHA and federal OSHA jurisdiction?

A contractor employs 8 workers and pays total wages of $480,000 annually. If the Unemployment Insurance (UI) tax rate is 3.4% on the first $7,000 of each employee's wages, what is the total annual UI tax owed?

Under Cal/OSHA regulations, what is required when a construction site has a trench excavation deeper than 5 feet?

A public works project requires certified payroll records. The prevailing wage for an electrician is $52.75 per hour with $18.50 in fringe benefits. If an electrician works 8 hours, what is the total prevailing wage obligation?

On a prevailing wage project, a carpenter's regular rate is $28/hour, but the prevailing wage is $35/hour with $8/hour in benefits. What must the contractor pay if the carpenter already receives $6/hour in benefits?

A California contractor has quarterly payroll of $85,000. What is the State Disability Insurance (SDI) withholding amount if the current SDI rate is 0.9% and the wage base limit is $153,164 annually?

Under California law, which statement about business entity liability is CORRECT?

XYZ Contracting LLC has 8 employees in California. An employee is injured on the job and requires medical treatment costing $15,000. The company has no workers' compensation insurance. What is XYZ's potential liability?

A general contractor subcontracts electrical work to an LLC. The electrician works exclusively for this contractor, uses the contractor's materials, and follows the contractor's daily schedule. Under AB5, this relationship is likely:

People Also Study

Related Study Resources

Practice More Contractor Exam Questions

Access all practice questions with progress tracking and adaptive difficulty to pass your Florida General Contractor exam.

Start Practicing

Disclaimer: EstatePass is an independent exam preparation platform and is not affiliated with, endorsed by, or connected to any state contractor licensing board, the Construction Industry Licensing Board (CILB), the Department of Business and Professional Regulation (DBPR), NASCLA, Pearson VUE, PSI, or any government agency. Exam requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing board before making decisions. Information shown was last verified on the dates indicated and may not reflect the most recent changes.