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.