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Is it allowed to own a Professional LLC in California? If not, what is the best business structure?

Claremont, CA |

I have professional engineering licenses in CA but i heard professional LLC's are not allowed in California. My other choice would be Sole Proprietorship but I need to have liability protection. In your opinion, what would be best business structure? Thank you

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Attorney answers 4


You should do a professional corporation. A full consultation would be necessary to properly advise you.


Your information is correct; professions that require licenses cannot use the LLC form. A professional corporation or a limited liability partnership would be the best way to limit liability.

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As correctly pointed out by colleagues above APC is an option. Best to you.

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You can form an LLP (limited liability partnership) as an engineer.

From the CA Secretary of State's website:
An LLP is a partnership that engages in the practice of public accountancy, the practice of law, the practice of architecture, the practice of engineering or the practice of land surveying, or provides services or facilities to a California registered LLP that practices public accountancy or law, or to a foreign LLP. An LLP is required to maintain certain levels of insurance as required by law.

Tamara B. Pow

Tamara B. Pow


You are only eligible to be an LLP if you have two or more partners. Since you mentioned a sole proprietorship as an alternative, it sounds like you do not have partners and need to consider a corporation instead of an LLP

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