Business Startups Attorneys in Granite Bay, California
Selecting the Business Entity That Best Fits Your Needs
One of the first major decisions you will face when starting a new business is choosing the appropriate business entity for your venture. There are many factors that determine which entity type will work best for you, and our experienced business law attorneys can help you make the right choice.
This step is incredibly important because forming a business entity can reduce or eliminate your personal liability, open up tax advantages, make it easier to obtain credit for your business, help to attract investors, and reduce administrative costs. Let the experienced business law attorneys at Herrig, Vogt & Hensley, LLP help you establish a strong foundation for your business by advising you on the business entity types that may best suit your business needs.
Business Entity Options
There are many different forms a business may take, but some of the most common business structures found in California are:
Sole Proprietorship — In a sole proprietorship, an individual is doing business in his or her individual name. A sole proprietor has complete control, is the recipient of all profits, and is responsible for all taxes and liabilities of the business. Though a sole proprietorship is a very simple and flexible business structure, personal assets are not protected against business creditors. Proper estate planning may help to mitigate some potential negative effects.
Partnership — A partnership has two or more people engaged in a business enterprise who share profits and losses together. If structured properly, a partnership can provide some protection of the partners’ personal assets from business creditors. There are several kinds of partnerships: General, Limited, and Limited Liability – each reliant upon the owner’s objectives and California law requirements.
Corporation — Corporations limit the liability of the corporate owners from the acts of the corporation. They can be designated as a “C corporation,” an “S corporation,” or a professional corporation. They are the formal types of business entities, created under the California Corporations Code. Ownership is determined by “shares of stock” owned.
Limited Liability Company — An LLC is similar to a corporation in that it offers liability protection for the owners, but it is taxed differently. LLCs may be managed by one or more managers or one or more members, rather than having shareholders like a corporation. LLCs require an operating agreement among the members as to the affairs of the LLC and the conduct of its business.
Competent Legal Representation to Help You Form Your Business
Our business law attorneys have decades of experience in assisting clients in all aspects of business law and business formation. If you need help discerning which entity is right for you, if you want to reserve a business name, or if you have any other business law-related questions, contact us to set up a free consultation to discuss your needs.
Contact us now to speak with a respected California business attorney.