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 Roger Your Own Question
Roger
Roger, Attorney
Category: Business Law
Satisfied Customers: 31662
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
6704987
Type Your Business Law Question Here...
Roger is online now
A new question is answered every 9 seconds

I am an architect in California. My wife also has two

Customer Question

I am an architect in California. My wife also has two businesses related to hair and clothing. All three businesses are sole props in California. I want to set up an umbrella company to house these three businesses, preferably an LLC, but I'm confused as to the best way. In California, architects are barred from forming an LLC, but can form an LLP.
1. In that case, can my wife be the other parter of my architecture practice if she is not a licensed architect?
2. If she can't, what are my options, if any, besides forming a typical corporation?
3. Is it possible for make the umbrella company and LLC, and then have my architecture practice be a sole prop underneath that umbrella?
Submitted: 1 year ago.
Category: Business Law
Expert:  Roger replied 1 year ago.
Hi - my name is ***** ***** I'll be glad to assist.
Expert:  Roger replied 1 year ago.
There is a such thing as a series LLC, which is one umbrella LLC with several subsidiaries. Here's a link that outlines how this works: https://www.ftb.ca.gov/businesses/bus_structures/SLLcompany.shtml
Expert:  Roger replied 1 year ago.
But, each organization must be an LLC.......and if CA law doesn't allow an architecture firm to operate under an LLC, this wouldn't work.
Expert:  Roger replied 1 year ago.
Thus, you'd likely be better off to form an LLC for your architecture firm and then form a series LLC for the other businesses.
Customer: replied 1 year ago.
I can't form an LLC in California as an architect though, and a series LLC can't be formed in California either
Expert:  Roger replied 1 year ago.
You can form a series LLC is another state and then register it in CA....which is what the link refers to.
Expert:  Roger replied 1 year ago.
But, even forming a series LLC in another state isn't going to help your architecture firm since the law prohibits an LLC for that profession.
Customer: replied 1 year ago.
What would be your suggestion for best setting all these businesses up for the greatest ease and limited liability?Can I form an llp for the umbrella or for architecture if my wife is not licensed?If not an llp, what type of corp is my last option?
Expert:  Roger replied 1 year ago.
you're likely going to have to establish a stand-alone company for your architecture firm.....and you can decide how to proceed with establishing a series LLC in another state and register to do business in CA or just form separate companies in CA.
Expert:  Roger replied 1 year ago.
The only entities available for a series is an LLC......so there's no other structure that I'm aware of that would work....
Expert:  Roger replied 1 year ago.
The other two businesses may be capable of operating as one LLC and combining its books....but that would depend on how the business operates.
Expert:  Roger replied 1 year ago.
It seems like your best option is to have the architecture firm as a separate LLP or Inc.....and then either have one LLC for the other two businesses to operate under or set up a series LLC in another state and register to do business in CA.
Customer: replied 1 year ago.
What about a corporation? I thought you could have an umbrella corporation
Expert:  Roger replied 1 year ago.
You can do this with the series LLC or a corporation with subdivisions (but most umbrella companies are in the consumer goods business and they're very complicated).....but you're likely going to have to keep the architecture firm separate because of the restrictions and professional licensure required by state law.