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?
2 Answers from Attorneys
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.
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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