I need some advice from a Business Formation lawyer

Asked 10 months ago - Sunnyvale, CA

I am forming a Financial and Consulting services in the state of California. My core business services will be filing taxes for individual and small businesses, payroll, bookkeeping, sales tax as well as advising in 401K and IRA. My question is can I form a LLC. When I went through the form on the first page it says " I cant form entity with LLC for " Professional Services". I would really appreciate if someone can help me on this issue.

Thanks

Attorney answers (5)

  1. Pardis Patrick Ashouri

    Contributor Level 17

    5

    Lawyers agree

    1

    Answered . whether a C corp or S election has be done with CPA/attorney consultation and recommendation.

    If you intend to render "financial advise" on IRA etc. you must also be licensed professional with some sort of SEC level license whether series 6 or 7 or whichever applicable controlling license as well as State licensing, then with that you could have a "professional " corporation. Or if you were a CPA.

    Even If you established a non professional corporation to render tax prepration and accounting or book keeping services you still can not give financial advice or sale of any financial instrument whether in a retirement account or not. Good luck.

    In addition to AVVO's disclaimer, please note that by this answer no attorney client relationship is intended mor... more
  2. Terrence Jay Moore

    Contributor Level 9

    5

    Lawyers agree

    Answered . Form a corporation. You can elect to be an S Corp. You will have the same tax advantages as an LLC.

    Remember we win you operate as a corporation make sure your business name reflects the fact it is a corporation in all we sign has a corporate officer, i.e., President

    The above is not legal advice. It is an illustration of options that can be used in certain situations. I have... more
  3. Paula Brown Sinclair

    Contributor Level 20

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    Answered . Feel free to use the Avvo "Find a Lawyer" function and retain capable counsel. This Q&A is not intended for attorney recruitment (or client solicitation either).

    This answer is offered as a public service for general information only and may not be relied upon as legal advice.
  4. Ripal Patel

    Contributor Level 12

    1

    Lawyer agrees

    Answered . I would contact any one of the fine lawyers on Avvo.

    Your particular situation may be different. This answer is intended for information purposes only. No Attorney-... more
  5. Ili J. Subhan

    Pro

    Contributor Level 14

    2

    Lawyers agree

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    Answered . Under California law, LLCs cannot be formed to provide professional services. Professional services include any service that requires a professional state license. If you don’t know whether your service requires a state license, see the California Department of Consumer Affairs website. As an alternative to forming an LLC, California professionals may form limited liability partnerships (LLPs). Consult with a California business lawyer and a tax adviser to determine which business formation would be best suitable for you and your business. Search Avvo for business lawyers in your area.

    The information provided is intended for informational purposes only and should not substitute for the advice and... more

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