With limited exceptions, a business that renders professional services cannot operate as a Limited Liability Company (LLC). “Professional services” are those that require licensing, registration, or certification under the Business and Professions Code. For example, lawyers, doctors, dentists, and accountants may not operate as an LLC. The Business and Professions Code currently authorizes only insurance agents, insurance brokers, and licensed contractors to conduct business as limited liability companies.
There are, of course, other options available to a professional services business that is not allowed to operate as a limited liability company. Professionals may, for example, form a California corporation or Limited Liability Partnership which offer many of the same benefits of an LLC.
Professional Services – Relevant Statutes
California Corporations Code
17002(c). Notwithstanding Section 17375, a 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.17375. Nothing in this title shall be construed to permit a domestic or foreign limited liability company to render professional services, as defined in subdivision (a) of Section 13401 and in Section 13401.3, in this state.
