Legal Question in Business Law in California

Partnerships in California

One other question.

I have read that LLP's are only for attorneys, accountants and architects. But then I read that LLC's are NOT an option for any field requiring a state license requiring state testing and regulation. So hairstylists, skin care specialists, nail techs - would all fall under that category. If we can't get an LLP and we can't get an LLC - what are our options if we want a partnership that protects us from personal liability, but a corporation isn't the right fit?


Asked on 7/01/08, 3:00 pm

2 Answers from Attorneys
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Partnerships in California

Why can't you get a LLC which is a limited partnership registered with the secretary of state?

Contact me directly.

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Answered on 7/02/08, 5:01 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Partnerships in California

First, I have to ask, why is a corporation not the right fit?

Partnerships, that is, general partnerships, simply do not provide any protection from personal liability. Your options are lots of insurance or going with a corporation.

A corporation electing to be taxed as a partnership - a so-called "S" corporation - would perform as well as an LLC for most businesses. The main limitation I can think of is that an "S" corporation cannot have a non-resident alien as a shareholder, while an LLC can have a non-resident alien member.

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Answered on 7/01/08, 4:16 pm


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