Trying to figure out how to set up a business in California? If you operate a business or are planning to start a business you need to consider exactly how you would like to structure your business. Taxes, personal liability, employees and various other considerations may make one form of business entity more attractive than the others.
I can help you prepare all the documents required to complete the each type of business formation:
- General Partnership (GP): Are you operating or starting a business with one or more co-owners? If you are willing to share the business profits without limiting your partners’ personal liability for business debts Chris can help you establish your GP.
- Joint Venture: Will you and at least one other person be conducting a single business transaction rather establishing an ongoing business operation? Chris can help you organize your joint venture.
- Limited Liability Partnership (LLP): Do you want to establish a business with one or more General Partners who control the business operations and are subject to liability for business debts and obligations but which also includes Limited Partners who do not participate in the business operations but are subject to liability only to the extent of the their investment in the business? If so, an LLP may be your best option but and LLP must strictly comply with California statutes. Chris can help you organize your LLP.
- Limited Liability Company (LLC): If you are considering a business structure that has some of the attributes of a Partnership and some of the benefits of a Corporation you may be planning to form an LLC. As owners, you will have limited financial liability but you will but receive, and be taxed on, income directly from the LLC. A Limited Liability Company is another entity that Chris can help you organize to strictly comply with California statutory law.
- Corporation (also called a Business Corporation): If you would like your business to be separate legal person so that you will be shielded from liability for business debts Chris can help you form a Corporation. As long as you understand that the Corporation pays tax on its income and the shareholders must pay taxes on any distributions of that income you may wish to take advantage of the limited liability offered by this type of business formation despite the double taxation. Chris can help you be confident in how to set up a business as your Corporation.
- S Corporation: If you would prefer a corporate structure but wish to avoid double taxation, you may wish to organize an S Corporation. Only the shareholders are taxed on their shares of the business income. If you are willing to accept that S Corporations are subject to stricter operating and organizational rules, Chris can help you set up an S Corporation.
- Non-Profit Corporation (NPC): Are you planning to establish an entity for a charitable, religious, educational, scientific or even a literary goal? If so, an NPC may be what best suits your purposes. An NPC is free of certain state and federal tax obligations but, of course, the purpose of your NPC must be so rewarding that you will except that it cannot distribute dividends or profits. Chris can assist in setting up an NPC that must strictly adhere to federal and state rules.
More information on how to set up a business can be found on the California Secretary of State’s website. You can call me at 562-547-3255 to get help with the process today!
How to Set Up a Business
If you want to know how to set up a business, there are multiple factors to consider and multiple ways to mess it up. If you want to skip the bulk of the paperwork and have a stress-free and straightforward process, call the Legal Document Guy today at 562-547-3255. To see the other services we provide, click here.