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LLCs May Have An Occupation But Usually Not A Profession

California requires a permit, license or registration to engage in a wide variety of activities.  The CalGOLD (California Government On-line to Desktops) website allows you to search 147 different business types that require some form of permit, license or registration.  The site lists everything from Acupuncture to Wrecking and Demolition Contractor.  When the legislature enacted the…

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The CSL And Membership Interests In LLCs

Two decades ago, Bob Rizzi and I wrote an article for the California Business Law Reporter asking whether limited liability company legislation would ever be enacted in California.  Only three years later, California enacted the Beverly-Killea Limited Liability Company Act, Corporations Code Section 17000 et seq.  Stats. 1994, c. 1200 (SB 469). As a member of…

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The Shades Of Samson Occum, Daniel Webster And John Marshall Haunt New LLC Act Bill

Nearly two decades ago, I co-wrote an article describing a new form of business entity – the limited liability company – and pondering whether California would ever enact laws authorizing the organization of LLCs.  Bishop & Rizzi, “Are Limited Liability Companies Coming to California?”  13 CEB California Business Law Reporter 135 (Dec. 1991).  A few…

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LLC Contractor Licensing – “We’re Not Even Talking About That.”

I’ve welcomed the enactment of SB 392 (Florez) which authorizes the Contractors’ State License Board to issue contractor’s licenses to limited liability companies.  Potential LLC licensees should note, however, that SB 392 imposes significant surety bond and liability insurance requirements on LLC’s.  Because SB 392 takes effect in a few weeks, I called the CSLB to ask…

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Will Your Next Construction Contractor be an LLC?

Speaking of professional services, the Beverly-Killea Limited Liability Company Act generally does not authorize domestic and foreign limited liability companies to engage in professional services.  Consequently, a limited liability company cannot obtain a license as a construction contractor in California.  Last year, Senator Florez introduced SB 392 to permit LLCs to obtain a contractor’s license. …

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