True. A business required to be licensed under the Business and Professions Code cannot operate an LLC, unless expressly authorized by statute.
In California, limited liability companies (LLCs) are governed by the Beverly-Killea Limited Liability Company Act, which starts at California Corporations Code section 17000.
Pursuant to California Corporations Code section 17375, a domestic or foreign limited liability company may not render professional services, as defined in Corporations Code sections 13401(a) and 13401.3. "Professional services" are defined as any type of professional services that may be lawfully rendered only pursuant to a license, certification, or registration authorized by the Business and Professions Code, the Chiropractic Act, the Osteopathic Act or the Yacht and Ship Brokers Act.
Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, consult your own attorney.
The general rationale is that your "entity", under statue would be restricted to just licensed individuals in the same class of professionals...and that would be a "Professional Corporation" with a Shareholder's Agreement clearly outlining the state regulations. Remember now that you are a California licensed professional, you have a whole group of compliance matters...so, choos an attorney of your preference and have a more robust discussion on the matters at hand.
Shawn Jackson ESQ. (707) 584-4529
Business Development Attorney EMAIL: [email protected]
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