Law Firm = S-Corp

[dsi]

Can a law firm in CA operate as an S-corp?

[Golden Rocket]

I think so

Don't know any reason why they would be disallowed for Federal purposes, but of course I can't comment on California tax law.

I think maybe the REAL question might be whether the S Corp is the best choice. Most states do not allow professional service providers to avoid tort liabilities simply by incorporating. This removes one of the strongest advantages of a corporation to a partnership. Don't know the status of LLCs in California.

We've got several CA preparers on the board, Dave. I'm sure you'll hear from one of these.

[ED SMITH]

S-corps are allowed in California. LLC's are NOT allowed for licensed professionals such as lawyers, doctors, etc.

[dsi]

I didn't think there was a problem with a law firm operating as an s-corp here in CA, but just wanted some feedback. I researched the CA website and couldn't find a definite answer on topic. I'm aware of the LLC rules, so that idea was shot down immediately. Thanks for the responses.