If there are issues that apply to your business, an attorney can handle them for you; a CPA cannot. Filing LLC status alone won’t guarantee you legal protection of your business. An attorney can help create this agreement with your input, a CPA cannot.

What is the best taxation for LLC?

As a simple and effective tax structure, many multi-member LLCs will find the partnership tax status to be an ideal choice. However, if your company plans to seek funding from outside investors or other types of passive owners, you may want to consider being taxed as a corporation.

Can a licensed Professional Accountant form a LLC?

However, some states don’t allow licensed professionals, such as accountants, to form an LLC since they don’t want them to escape personal responsibility for professional malpractice by “hiding behind” the personal liability protection of an LLC.

Can a PLLC be taxed as a C corporation?

In addition, the PLLC is taxed like an LLC, which offers pass-through taxation. But a Professional Corporation is generally taxed like a C Corporation, which can lead to double taxation should you take some profits out of the company. However, keep in mind that a C Corporation can still elect S Corporation status with the IRS.

Can a LLC or PLLC be formed in California?

For example, professionals in New York cannot form an LLC, but may form a PLLC. Professionals in California cannot form an LLC or a PLLC, but can form a RLLP (Registered Limited Liability Partnership) or PC (Professional Corporation). And professionals in Arizona can choose between an LLC or PLLC.

Can a business form a limited liability company ( LLC )?

Certain businesses, such as those in the banking and insurance industries, are prohibited from forming an LLC. While some states allow professionals to form an LLC, others require professionals form a professional limited liability company (PLLC) as set out by state statutes.