How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard, Attorney
Category: Business Law
Satisfied Customers: 53666
Experience:  32 years of experience practicing law and a businessman.
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

I am a california CPA (active) and my wife is an MBA. We would

Resolved Question:

I am a california CPA (active) and my wife is an MBA. We would like to go into business to provide basic financial services to startup companies in California (bookeeping, banking, financial statement compilation, financial forecasting, office administration, etc.).

We would like to ensure our personal assets are protected so we are considering setting up an California LLC. We would be the two member / owners and we are thinking of having the LLC be taxed as a partnership. We will be the only people providing the services.

Is it permissable to use an LLC structure for the types of basic financial & office services we would like to provide? I note in the CA LLC registration forms that certain providers of professional services REQUIRING a license are not permitted to provide those services via an LLC. Please note we do not intend to provide audit or other attestation services of any kind (which would require a CPA license) and it is not our intent to establish a public accounting practice per se, just a bookkeeping and financial services provider. So our thinking is that our service offerings would be exempt from the professional services restriction. Is this correct?

Additionally, is the LLC structure recommended / preferrable in order to protect our personal assets in the event the LLC is ever sued? What other organizational forms (e.g. sole proprietorship, S-corp, etc) if any would be preferrable?
Submitted: 5 years ago.
Category: Business Law
Expert:  Richard replied 5 years ago.

Good afternoon. Yes, you are can form an LLC for your business purposes. And, yes, the LLC offers the most flexibility and yet offers limited liability meaning your own personal assets are not at risk. A sole proprietorship is not recommended because you don't have limited liability. An S Corp would be the next in line after the LLC, but the LLC offers more flexibility in terms of contributions, preferential allocations of income/loss and distributions of money, and classes of owners. Those may not be important now, but could be down the road and there are no disadvantages of forming an LLC vs. the S Corp. So, botXXXXX XXXXXne...LLC!



I hope this has given you the guidance you were seeking. I wish you the best of luck!


If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.


If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.

If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.


The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard and 3 other Business Law Specialists are ready to help you

Related Business Law Questions