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HomeCorporations CodeGENERAL PROVISIONS§ 4 Net Worth Confirmation Requirements

§ 4 Net Worth Confirmation Requirements

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4 Net Worth Confirmation Requirements

Key Takeaways

  • •Some partnerships (like law or accounting firms) must prove they have a certain amount of money to follow the rules.
  • •If the partnership does accounting work, they need at least $10 million.
  • •If the partnership does legal work, they need at least $15 million.
  • •If the partnership does architecture, engineering, or land surveying, they need at least $10 million.

Example

A law firm wants to operate in a new state.

The firm must show they have at least $15 million in total money (net worth) from their last financial year to follow the rules.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4 Net Worth Confirmation Requirements

The registered or foreign limited liability partnership chooses to satisfy the requirements of Section 16956 by confirming, pursuant to Section 16956(a)(1)(D), 16956(a)(2)(D), 16956(a)(3)(D), or 16956(a)(4)(D) and pursuant to Section 16956(c), that, as of the most recently completed fiscal year, the partnership had a net worth equal to or exceeding ten million dollars ($10,000,000), in the case of a partnership providing accountancy services, fifteen million dollars ($15,000,000), in the case of a partnership providing legal services, or ten million dollars ($10,000,000), in the case of a partnership providing architectural services, engineering services, or land surveying services.

Last verified: January 23, 2026

Key Terms

Section 16956net worthlimited liability partnershipaccountancy serviceslegal servicesarchitectural servicesengineering servicesland surveying services

Related Statutes

  • § 16958 Foreign Llp Registration Rules
  • § 16961 Llp Registration Filing Exemption
  • § 6 Llc Partnership Net Worth Confirmation
  • § 1 Llc Partnership Name Requirements
  • § 16951 Limited Liability Partnership Recognition

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 4.
View Official Source