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Business entity type and partnering on a license

1434 Views 4 Replies 2 Participants Last post by  mrcharles, 
M
Hey guys-

This is a two part question, interested in any experience you may have.

#1- What business type works best and has the most protection for a new company. It will be my brother and I starting a General Engineering contractor in CA. I notice that the CSLB accepts LLC now, so I wasn't sure if S, C, or LLC would be best.

#2- When filing for the actual licence should we both be listed or is it just the LLC/Corp/etc that is listed and granted the license?

I don't think we'll be doing more than $200-250k/yr for the first few years if that helps.


Thanks !
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M
Form an LLC and name you both as officers of the company...... For the license only one of you needs to be the qualifying officer.
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M
Thanks for the advise. After looking into the redic rules and fees for an LLC I think i need to go S-Corp to keep costs down. Having to get 100k in bonding over and above the 12.5k is cost prohibitive since we're just starting. My brother already thinks he just just do sole proprietor the whole way but i think we need the liability protection.

Is it possible to have an S-Corp for the business but just him hole the license? Would we both still be protected even though the license isn't technically under a Corp structure?

THANKS in advance!
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M
Your brother will hold his license.... then the company will get it's own license.... Your brother will be named as the qualifying officer. It will be two separate license numbers, and you have to pay for two separate licenses.
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M
it will cover both of you.
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