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Re: LLC in California

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My understanding is that accountants, architects, and lawyers can form
LLC, engineers can't (in California).   I understand SEAONC is lobbying
Sacramento to allow engineers to form LLC.

Gautam

>>> Amehrabi(--nospam--at)aol.com 1/8/2005 1:32:40 PM >>>
Colleagues, 

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.

Thanks,

Ali Mehrabian, Ph.D., M.ASCE
West Coast Research Institute
1233 Amherst Ave., Suite 105
Los Angeles, CA 90025
Phone: (310) 612-6661
http://www.wcri.net     (under construction)

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