Forming an LLC?

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PLS7393
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Forming an LLC?

Post by PLS7393 »

I have been investigating the opportunity to convert from a Sole Proprietorship to an LLC, for my business and see that the Sate Board Organization Record Form does not have a box for an LLC? Are any of you a LLC that can shed some light on this before I contact The Board?
I did a search of the forum and did not see any information.

Thanks!
RAM
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Re: Forming an LLC?

Post by RAM »

contact Kevin Morris in Bakersfield, he just went thru this.
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PLS7393
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Re: Forming an LLC?

Post by PLS7393 »

Well I have been in communication with the Board, and here is their response.

" LLC’s are not allowed for engineering or surveying business structures and if anyone has any questions, they can contact the Board."

Guess I'll just continue one step at a time.
DWoolley
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Re: Forming an LLC?

Post by DWoolley »

The California Attorney General said that land surveyors and other professionals cannot form a Limitied Liability Company (LLC). I have the opinion - which I estimate was issued 25 years ago. I will post the opinion later.

DWoolley
MikeT
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Re: Forming an LLC?

Post by MikeT »

I have been thinking about an S-Corp. I know that's legal. You might want to look into that.
steffan
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Re: Forming an LLC?

Post by steffan »

Section 17701.04(b) of the California Corporations Code might be the applicable restricting limitation for surveyors to form an LLC.
It says:

"17701.04.
(b) A limited liability company may have any lawful purpose, regardless of whether for profit, except the banking business, the business of issuing policies of insurance and assuming insurance risks, or the trust company business. A domestic or foreign limited liability company may render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code, the Chiropractic Act, the Osteopathic Act, or the Yacht and Ship Brokers Act, if the applicable provisions of the Business and Professions Code, the Chiropractic Act, the Osteopathic Act, or the Yacht and Ship Brokers Act authorize a limited liability company or foreign limited liability company to hold that license, certificate, or registration."
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Ian Wilson
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Re: Forming an LLC?

Post by Ian Wilson »

Is this the AG Opinion you're looking for, David?
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rmaher
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Re: Forming an LLC?

Post by rmaher »

PLS7393 wrote:Well I have been in communication with the Board, and here is their response.

" LLC’s are not allowed for engineering or surveying business structures and if anyone has any questions, they can contact the Board."

Guess I'll just continue one step at a time.
Citations sure would be better than "call them" ... I'll give it a whirl;

CCC 17701.04.
(b) ... A domestic ... limited liability company may render services that may be lawfully rendered only pursuant to a license, certificate, or registration authorized by the Business and Professions Code ... if the applicable provisions of the Business and Professions Code ... authorize a limited liability company ... to hold that license, certificate, or registration."

Unless I missed it, our section of the B&P doesn't authorize the LLC to "hold that license", though it appears to come close to referring to LLC's here;

BPC 8729
(a) This chapter does not prohibit one or more licensed land surveyors or civil engineers
licensed in this state prior to 1982 (hereinafter called civil engineers) from practicing or offering
to practice, within the scope of their licensure, land surveying as a sole proprietorship,
partnership, limited liability partnership, firm, or corporation (hereinafter called business), if the
following conditions are satisfied ...

Laughing at myself ... I called the board with a question about this several years ago and was told that recent changes allowed it. Anecdotally and without citation; at least none I can find in my notes.

I did find this useful article.

Image
Take care,

Rich
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