The type of business entity that you choose to form in California could mean the difference between success and failure. We at Lawrence R. Jensen and Associates have put together a guide to help explain the pros and cons of a few of the most common types.
As a Californian business owner just starting your venture, you have to ask yourself what sort of business formation suits you best. Consider your purpose, size, and intention in order to make your decision. Today, we will take a look at Limited Liability Corporations.
Forming a corporation in California offers protection for your personal finances in the form of limited liability. Once formed, there are two different types of corporations for tax purposes: so called " S-corporations" and "C-corporations."
There are many different types of businesses you can start in California, and all involve their own strengths and weaknesses. If you would like to take advantage of pass-through taxation while protecting your personal assets from business creditors, a limited liability company may be a good option. According to FindLaw, there is no minimum number of people required to form an LLC, which means you can form one yourself and enjoy some advantages of both a corporation and a sole proprietorship.
At Lawrence R. Jensen & Associates in California, we represent many entrepreneurs who are starting their own businesses. Consequently, we know how important choosing the proper business entity type can be for a start-up. We therefore thought it would be helpful to review the most common types of business entities here on our blog.
It is true that starting a business can be a challenging process. However, entrepreneurs can take steps towards putting themselves in a strong position to face and overcome difficulties that come up when a startup is getting off of the ground.