Speaking of professional services, the Beverly-Killea Limited Liability Company Act generally does not authorize domestic and foreign limited liability companies to engage in professional services.  Consequently, a limited liability company cannot obtain a license as a construction contractor in California.  Last year, Senator Florez introduced SB 392 to permit LLCs to obtain a contractor's license.  Not surprisingly, the bill was sponsored by large contractors and opposed by Labor.  The bill became a two-year bill and it now appears that Senator Florez has amended the bill to satisfy Labor's concerns.  Thus, California may soon lose the distinction (according to Senator Florez) of being the only state that entirely prohibits LLCs from obtaining a contractor's license.

It's hard to believe that 20 years ago, LLCs didn't exist in California.  In fact, Robert Rizzi and I even wrote an article about whether California would ever enact an LLC statute: Are Limited Liability Companies Coming to California? 13 CEB California Business Law Reporter 135 (1991).  Now, they are ubiquitous - except in the professions.