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Shareholder Segment

In this segment, firms will provide/edit a list of current shareholders. 

Reporting requirements will vary depending on whether you are submitting a new application or renewing your registration with the State Bar. Please identify your application type and review the instructions below that correspond to your selection. 

Annual Renewal

Is the LC attempting to renew its registration, and is this the first time it has submitted the application online?

If this is the LC's first year submitting an online renewal application through Agency Billing, please follow the instructions for the New Registration Application below.

Is the LC attempting to renew its registration and has it already submitted the application online in a prior renewal cycle?

If yes, the information submitted in the previous renewal cycle is already available in the online application. Please follow the steps below to complete the process:

      1. Review the list of shareholders in the table to confirm the information is correct.
                  The records can be updated.
        1. Manually – by selecting the “Edit” button in the corresponding shareholder row
        2. Excel Spreadsheet Entry – by downloading, editing, and re-uploading the excel document on record.

                   Ensure there is always at least one shareholder.

      ⇒ Please Note: For more information on State Bar Rules relating to Shareholders, see below the instructions for a New Registration Application.

             2.   Once the information on record is up to date, click “Continue” at the bottom of the page.

       

      New Registration Application

      1. Provide the required information on the LC’s shareholders, including name, Bar No, Email address, and Shareholder type.
        1. In addition to California, shareholders can report a second jurisdiction where a permitted to practice and/or has an active license. It is at the discretion of the shareholder to indicate if and which additional jurisdiction to report.
        2. Shareholders who practice under the firm, need to also be listed under the “Attorney” segment as well.
        3. All active shareholders must have a current signed guarantee document on file to have complete annual renewal application.

      ⇒ Please Note: There must always be at least one shareholder.
      ⇒ Please Note:  All shareholders on record for the LC are required to sign the Guarantee document via a DocuSign request. Applications are not complete until the Guarantee documents have all been signed. Please ensure all shareholder information is correct to avoid any delays.
      ⇒ Please Note:  For solo-practitioners or single shareholder LCs, the shareholder must hold all positions (except a non-attorney employee can hold the position of secretary). 
      ⇒ Please Note:  For LCs with multiple shareholders, shareholders are permitted to report more than one Director. One shareholder can hold all remaining offices.
      ⇒ Please Note:  In addition to California, report a second jurisdiction where a shareholder is permitted to practice and/or has an active license. It is at the discretion of the shareholder to indicate if and which additional jurisdiction to report.

      Shareholders can be entered one of two ways: 

      1. Manual Entry of Shareholders: 
        1. If the firm would like to add Shareholders manually, click "Add Shareholder Manually" and fill out the drop-down menu.
        2. Enter whether the shareholder is a California or Non-California attorney under the “Shareholder Type” drop-down field.
        3. For California attorneys, the application will automatically add the official name on record when a Bar number is entered. 
       Table examples:
      •  Manual entry for CA attorney Shareholder/s

        

      •  Manual entry table for non-CA attorney Shareholder/s   

       

             2.    Upload an Excel Spreadsheet of Shareholders
        
        1. If the firm would like to add/edit Shareholders by uploading an excel, first click "Download sample data grid" and open the downloaded file in Excel.
        2. If utilizing the spreadsheet, do not alter the format from the spreadsheet provided or it will fail to upload.
        3. Use font size 11 or greater when adding data to the Excel spreadsheet.
        4. After filling out all the fields, click save to save the file in a known location on your computer. Upload the complete spreadsheet using the "Upload Excel File" button.

            2.    Once the information on record is up to date, click “Continue” at the bottom of the page. 

       

      State Bar of California Rules Relating to Shareholders

      Shareholder Eligibility and Licensing - only licensed attorneys can be shareholders. Every shareholder must be an active State Bar member or licensed in the jurisdiction where they practice. A disqualified person cannot hold shares.  

      Reporting Office Roles:

      • There must be at least one Shareholder on record. All officers must be shareholders, with the exception of secretary. 
      • One shareholder must be indicated as President. Only one shareholder can be marked as President. 
      • One shareholder must be indicated as Treasurer. Only one shareholder can be marked as Treasurer. 
      • At least one shareholder must be marked as the Director.  All directors mut be shareholders.
      • One shareholder can be indicated as Secretary. Only one shareholder can be marked as Secretary. LCs must have a secretary, but it does not have to be a shareholder.
      • One shareholder can hold multiple and/or all roles.

      Proof of Security (the guarantee) - Every shareholder must sign the LC guarantee, agreeing that the Law Corporation has the minimum required coverage for claims arising from the corporation’s practice. The guarantee amount is based on the total number of attorneys practicing on behalf of the corporation. The guarantee must be signed each year as part of the renewal application process. . 

      Reporting Changes - Report any changes in share ownership, directors, and officers within 30 to 45 days. This can be done by submitting a Special Report and/or in the annual renewal application. See the Special Report Guide for more information in submitting a Special Report.