Legal Question in Business Law in California
I am forming a business with a partner and eventually plan on getting a C-10 or C-45 license. Would I have to start out as a LLC and then go to an LLP? Or can I start as an LLP?
3 Answers from Attorneys
You may be operating with outdated information. I'm pretty sure that licensed contractors in California are now allowed to operate as LLCs. I'd think you might be better off as an LLC than as an LLP, but there are pros and cons to both. Check the CSLB Web site for current info.
I recommend sitting down with an attorney so no matter which one you pick, the partnership or operating agreements are done right... That you know how the business will run. Don't guess it may cause problems if you dont
You can't be an LLP at all. Only general partnerships in which each of the partners is licensed to engage in "the practice of architecture, the practice of public accountancy, the practice of engineering, the practice of land surveying, or the practice of law" can be LLP's. All others, including contractors, must be LLC's or some other business form.
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