LLCs Ain’t For Everyone

Not all types of business ventures are created equally in California. A California LLC or a foreign LLC registered to do business in California may not engage in a business which is registered, licensed or certified. Accordingly, professional LLCs are prohibited in California.This limitation is far more encompassing than just the obvious professions – e.g., attorneys, accountants, and physicians, who may not operate as LLCs in California. Some of our favorites include: Acupuncturists, Advertisers, Alarm Companies, Architects, Auctioneers, Barbers, Boxing, Wrestling an Martial Arts, Cemeteries, Chiropractors, Cleaning, Pressing and Dying, Clinical Social Workers, Contractors, Cosmetologists, Locksmiths, Marriage Counselors, Mineral Oil and Gas Brokers, Mule Racers, Nurses, Nursing Home Administrators, Optometrists, Photo Copiers, Physical Therapists, Physician’s Assistants, and Podiatrists.

The Secretary of State will not always prohibit the creation of an LLC for any of the above listed business purposes. However, the consequences of organizing a prohibited activity as an LLC run from no liability protection to fines and suspension with the professional’s licensing body.