Legal Question in Business Law in California

Re: Escort Service

In addition to the steps suggested by Mr. Drescher, you will need to decide on a business form. If you opt for a corporation, you will need corporate bylaws and other documents to file with the state; you will also need o designate an agent for service of process. If you opt for a partnership (assuming you have partners, of course), you will need a partnership agreement. If you opt for a sole proprietorship and don't use your own name on the business, you will need to file a fictitious business name statement. There are other possibilities, and you should probably consult with a lawyer before going forward.

It seems to me that escort services are likely more prone to legal problems than most other businesses. They may need to file suits to collect from customers or escorts, and may be sued by the escorts (or even the customers) from time to time. Sadly, it is possible that an escort may be assaulted by a customer and that the service will be sued as a result.

A business's owners are personally liable for the company's debts unless they incorporate or at least form a limited liability partnership (LLP) or limited liability corporation (LLC). These forms will help protect you financially if the business is sued.

[I should add that these forms will only protect you if the corporation isn't a front for illegal activity. Many escort services actively promote prostitution and other illegal actions, and their owners probably won't find a corporate form to be very helpful if they knowingly allow such activities.]

Although not required, it seems prudent to have an attorney on retainer and to have a liability insurance policy in place before you start doing business. These costs will be significant, but the protection they offer may far outweigh the costs.

Re: Escort Service

In Los Angeles you will need at least the following permits:

1. City Business Tax Registration number

2. Police Permit for the facility

3. Each person will also have to be licensed by the Police.

4. Depending on where the business is being conducted, you may need zoning permits (in house versus out call)

Others may also be needed, you can contact LAPD Police Commission at (213) 485-3531 for more information