Legal Question in Business Law in California

Re: forming a business

You will want to focus on forming a corporation, then, probably, making the post-incorporation IRS election to be taxed under the "S corporation" rules. LLCs cannot be used in California to conduct a business requiring a license from the Contractors State License Board.

You would form an ordinary corporation, not a professional corporation. Professional corporations can be used by persons who are licensed in certain fields traditiionally recognized as professions, such as medicine, law, architecture, nursing and dentistry.

Since you cannot use an LLC, your last question is moot. If you use a corporation, be sure to elect "S" tax status on IRS Form 2553 soon after the corporation is formed.

Also note that your license will have to be rewritten if and when you start using a corporation, and you will need a new bond, taxpayer ID number, bank account and stationery.