Can a CPA Firm Be an LLC in California?

Can a CPA firm be an LLC in California?
Can a CPA firm be an LLC in California? According to Corporate Code Section 17375, accountants cannot practice accountancy as an LLC and must form a professional corporation, based on underlying Corporate Code concerning Professional Corporations.
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A Certified Public Accounting (CPA) firm may conduct business in California as a Limited Liability Company (LLC). The California Board of Accountancy permits CPA companies to operate as LLCs as long as they are owned and run by CPAs who hold the appropriate licenses. To function as an LLC, a CPA business must first adhere to a number of rules and specifications.

A CPA company must first register with the California Secretary of State and secure an LLC name that is available for use in order to conduct business as an LLC in California. Additionally, the business must pay the necessary fees and submit its articles of organization to the Secretary of State. In addition, the city or county where the business is located must issue the company a business license.

One advantage of conducting business as an LLC is that it offers personal liability protection for the company’s owners. This means that any obligations or liabilities incurred by the company will not be able to affect the owners’ personal assets. The revenues and losses of the business are passed through to the owners and taxed on their individual tax returns, so an LLC can also offer tax advantages.

Operating as an LLC has the added benefit of perhaps making it simpler to raise money for the company. Because an LLC has limited liability and its owners are not held personally liable for the debts of the company, investors may be more likely to participate in an LLC.

Let’s now discuss whether an LLC is permitted to purchase a home in California. Yes, it is the answer. In California, an LLC is able to purchase a home and even offer the buyer some advantages. If an LLC is used to buy rental property, for instance, the rental income can be sent to the LLC rather than the individual owner, offering tax benefits. The amount a real estate business owner makes varies significantly based on the size and success of the enterprise. According to salary.com, a real estate firm owner in California has a median yearly compensation of about $138,000 dollars. However, this can vary significantly based on things like location, experience, and business size.

Moving on, the answer is that a license is necessary in California in order to manage real estate. Real estate brokers or property management licenses are prerequisites for property managers in California. By passing a state exam and fulfilling certain educational and work experience requirements, this license can be earned.

And last, the issue of whether a single person can own an LLC. Yes, it is the answer. An LLC that has a single member is referred to as a single-member LLC in California. Similar to a multi-member LLC, this style of ownership offers personal liability protection for the owner.

In conclusion, a CPA company may conduct business in California as an LLC if certain conditions are satisfied. In addition, an LLC can purchase a home in California and shield the company’s owners from personal liability. California real estate firm owners can earn a typical yearly compensation of about $138,000, and licensed property managers are a requirement. Finally, a single person may own an LLC in California.

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