Is there any California law preventing me from founding an LLC that would seek to obtain a service contract with the company I am employed by?

Question

Is there any California law preventing me from founding an LLC that would seek to obtain a service contract with the company I am employed by?

Answer

I think you have asked a question calling for a rather narrow and specific answer when you probably have a broader, more general concern. California doesn't have any statute on the books that says, in effect, "Thou shalt not form a business entity that will seek to enter into a contract with thy employer." For example, it's not unusual for one or more of the officers of a company to form an LLC to acquire, own and lease business premises (an office, a store building, etc.) to their company. However, also note that if you are a relatively low-level employee and your actions in forming an LLC and pitching a deal to your employer are viewed as "out of line" in any way, rightly or wrongly, you might be overlooked for promotion, regarded with suspicion, or even fired. Independent entrepreneurship by a company's rank-and-file can have rewards, but also bears risks. This I know from personal experience!