Factors affecting the “choice of entity” can (should) include:
- Owner liability;
- Owner control and participation in management;
- Reporting and taxation of income;
- Changes in ownership – withdrawal, retirement and the like;
- Allocations of profits and losses;
- Rights among owners with respect to dispute resolution; and
- Licensing (e.g., LLCs in California).
- Under California law, providers of “professional services” generally cannot (legally) form an LLC.
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