Starting your own business is exciting and frightening at the same time. When you decide to launch your new business, you will have a head full of ideas, unbridled enthusiasm, and raw determination.
And maybe a nervous feeling.
You may be nervous because you’re not sure where to start. Attorney James Hann can show you where the starting point is and lead you through the incorporation and registration process for your California business.
Types of Business Organizations
There are four primary types of business organizations. Each has advantages and drawbacks, and what these are and how they might affect you depends to a great extent on which characteristics are most important to you. The type of business form that you choose impacts the company and owners’ liabilities and taxes. Here’s a look at the most common options and their major features:
The simplest type of business is a sole proprietorship. With only a handful of forms to file, the business is structured so that if you’re the only owner, there’s no distinction between the business and yourself. The big takeaway is that in a sole proprietorship, all of the profits, losses, assets, and liabilities are your personal responsibility, and you will have to pay self-employment tax on the income.
An LLC is a limited liability company. This type of business protects the owner’s personal assets from financial liability and gives some protection against personal liability. You’ll need to file paperwork with the California Secretary of State and pay the necessary fees. There are forms that James knows how to fill out and file. As an experienced business lawyer, he can help you with your articles of organization, an LLC operating agreement, and comply with any state publication requirements.
Corporations are more difficult to start and to manage because of the complicated tax, accounting, record keeping, and industry requirements. You will need to appoint directors, file articles of incorporation, pay filing fees, and comply with other California incorporation laws. However, one big benefit of a corporation is that its income is often taxed at lower rates than personal income. James can take care of all of these requirements and help you get your corporation operating quickly.
There’s a lot to consider with starting a business. Talk to James about your plans to start a new business. See how he can best help you by simply setting up an appointment. Please call (408) 755-9793 or email firstname.lastname@example.org.