This is a business entity used by two or more companies or individuals who are working on a joint tenant venture together. This type of entity gives its members protection like a corporation but is usually taxed like a partnership.
There are Two Types of Limited Liability Companies:
- The Member managed company where each member has a say in how the company is managed.
- The Manager managed where one person is put in charge similar to a President of a Corporation.
This type of entity in California has only been approved for a little over two years and there are still some things being worked out in the code. At this time, many licensed businesses cannot use this type of entity. Also, this type of entity is unavailable to any professional company as set forth in the Business and Professionals Code of California and the corporate Code of California.