People who want to create a business face a lot of choices very quickly. And the early choices often end up mattering the most because they determine all the options that businesses and their owners will face next. A lot of possible forms of companies and corporations will achieve founders’ needs, but which one has the most advantages?
- What are my choices if I am creating a business alone?
A sole proprietorship is perhaps the simplest and most common type of business. This is usually one person using his or her own name, or possibly a fictitious title that sounds like a company name, and not sharing the rights and responsibilities of ownership.
- How can multiple owners get the right amount of rights in a new business?
The means by which a business is created, which may be a charter or articles of incorporation, will state how much of a share or percentage of ownership is conferred on different people or entities. This is often a good way of showing good faith after a loan or share purchase by another party.
- How do people keep their own assets separate from business assets?
A limited-liability corporation (LLC) or partnership (LLP) will help create the foundations for accounts and property ownership under the name of a company. This also helps create indemnity, which protects people from the debts or problems of a company.
- What makes business formation in California easier?
An attorney may help business creators answer questions about the forms of businesses. Legal representation may be helpful in various phases of creating and running a business.