What’s the best form for my business in California?

| Jan 14, 2020 | business formation | 0 comments

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.

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.