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I need some advice from a Business Formation lawyer

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

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Attorney answers 5

Posted

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.

Asker

Posted

Hi There,I cant see your answers? it just say to " 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). " I am new to Avvo. Am i doing something wrong?

Paula Brown Sinclair

Paula Brown Sinclair

Posted

For something as important as the proper creation of an LLC, your needs will not be met by relying on the general information we can provide here. At the top of your page is a tab or button for "find a lawyer." It will take you to a very powerful search tool which will help identify business attorneys in your area. Click on their names to read their profiles and narrow your list.

Asker

Posted

Thank you :)

Posted

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 not examined all of your facts, if I did I might provide a different response.

Asker

Posted

Definitely has more tax advantage in S Corp, but dont we have to have one person in payroll? Not sure company will make money in first year and dont really want to pay the payroll taxes and others. If we ( i have one partner), Do we need one person in payroll? Thannks in advance

Posted

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 entered into and unless there is a signed retainer agreement in place, neither me nor anyone in our office has intended to solicit clients nor reprints them. The answers are general in nature and without weighing specifics of particular query. No answer should be relied on in whole or in part, directly or otherwise to act or not to act in pursue of any of your potential claims in law or equity. You should consult with and obtain advise or representation of an attorney to protect your rights regarding your case or matter.

Asker

Posted

I am not CPA yet but I have two more exams. I will have one person onboard next year . I can take financial advising off my list this year and just do the tax, bookeeping, and payroll this year. I will be licensed in CA by March 2014. So, I am just wondering if I registered for tax/book keeping and payroll. Can I register as a LLC? Thanks

Carl H Starrett II

Carl H Starrett II

Posted

if your goal is to become eventually become a CPA, forming an LLC makes no sense.

Posted

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-Client relationship has been established. I am an attorney in the Bay Area.

Posted

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 counsel of an attorney. This information does not constitute legal advice. We ask that you consult with a lawyer, as your facts are unique and because each situation requires analysis from many different perspectives. We cannot be responsible if you rely on information based on this website without the consultation of an attorney.

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