AB 5 - FAQ
This is a growing library of Frequently Asked Questions about what I know about AB 5. The following is not pretending nor should it be considered to be a) legal advice; b) tax advice. I'm just a guy bloggin' about what I've learned about this law and how it affects me and my business. You and your business are unique and should be advised by only you, your lawer, and your tax advisor -- not some blog on the internet.
1) Do I really need to get a business license?
Yes, if you intend to exploit the B2B exemption in AB 5 as a bona fide business. In short, businesses get business licenses. DRA's opinion.
2) Do I really need to incorporate?
If you want to fall under the B2B exemption, you need to have some kind of legal entity. It does not have to be a corporation. It could be, but it doesn't have to be. The official list is: sole proprietor, partnership, or corporation. Read my checklist. (Notice I've removed LLCs because there is reason to believe that court reporters fall under the professional services category and thus limiting the liability is not allowed. Further reading.)
Tuesday, January 14, 2020