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Re: LLC in California

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Thanks for the messages.  In California LLC stands for "Limited Liability Company" not corporation.  My understanding is that in CA, the term "professional" is somewhat different from what we commonly used.  Engineers do not fall under the category of "Professionals" but architects and lawyers do.  Why?  Ask the lawmakers and lobbyists.  So I think engineers may be able to form LLC.
LLC formation started in CA in 1994, so it is fairly new.  LLC seems to have two basic advantages over other forms of companies.  First, it gives you a limited liability protection; that is very important in Los Angeles area where people get sued over basically anything.  Secondly, LLC gives you the advantages of a tax-through without worrying about too much paper work.  However, regardless of your LLC income, profit, etc., you have to pay an annual fee of $800.  Some say that LLC is not advantageous if your company starts to grow and you have to start hiring too many employees.  However, I don't know the reasons for that.
The LLC topic is still open for discussion on this listserv.
Ali Mehrabian, Ph.D., M.ASCE
West Coast Research Institute
1233 Amherst Ave., Suite 105
Los Angeles, CA 90025
Phone: (310) 612-6661     (under construction)