Physicians, therapists, chiropractors, and other licensed professionals in California generally can’t practice through an LLC — no matter what your filing service told you. Here’s what the Moscone-Knox Act requires, who can own shares, and how to fix an entity that was formed wrong.

You can call someone an independent contractor, pay them on a 1099, and both agree in writing that’s what they are. Under California law, none of that decides the question. The state does, using a test that presumes your worker is an employee until you prove otherwise.
Here’s how AB 5 actually works, why creative businesses get caught more than most, and how to check your own exposure before the state does it for you.

Heard from your CPA that an S-Corp election might save you money? In most states, the math is straightforward. In California, it is not. A unique 1.5% franchise tax on S-Corp net income changes the breakeven entirely, and most online calculators ignore it. This post shows you the real numbers, the real compliance costs, and when the election actually makes sense for a California LLC owner.

You filed your LLC. But is it actually protecting you?
Filing your articles of organization is just the first step. The habits you keep after formation are what determine whether your liability shield holds up when it matters most.
After 15 years working with 500+ California businesses, Chris Damelio sees the same five mistakes eroding LLC protection time and again. None of them are dramatic. All of them are fixable.
If you formed your LLC on your own or through an online service, this is worth reading before a problem makes it urgent.

You can file the paperwork to form a California LLC in an afternoon, for $70. Whether that LLC actually protects you — or quietly leaves you exposed — comes down to the parts the filing page never mentions: entity choice, the franchise tax that’s no longer waived, the operating agreement most owners skip, and the compliance habits that keep your liability shield intact.

Buying or selling a California small business is one of the biggest transactions of your professional life, and most owners enter it with a broker-provided template and no legal review. This checklist covers everything from asset sale structure and due diligence to non-compete limits, lease assignment traps, and the closing documents brokers routinely leave out.

Before signing a commercial lease in San Diego, business owners should understand the clauses that can create massive financial exposure later. This guide breaks down 12 high-risk lease provisions — from personal guarantees and CAM charges to relocation clauses and holdover rent — and explains what to negotiate before you sign.

Here is what AB 5 enforcement actually looks like in practice. A California business owner receives an EDD audit notice.

Think filing a $70 LLC form is enough to protect your business? Think again. This guide explains the critical legal, tax, and compliance steps California business owners need to take to properly structure and protect their LLC in 2026.