The way you structure your business will have consequences for its ability to grow and thrive. The best legal structure for your business startup is the one that matches your situation and your goals. The form you choose will outline who has the decision-making power, as well as the business’s taxes and liabilities.
At the Law Offices of Derek P. Wisehart, our lawyer is ready to help you create the business you envision. Possible formations include:
- Corporation. Corporations can help shield their owners from liability for acts of the corporation.
- Limited liability company. An LLC is similar to a corporation in respect to protection against liability for the owner, but taxes are treated differently.
- Sole proprietorship. In a sole proprietorship, you are the business. In California, you don’t necessarily need to file any papers. You simply use your own name or a fictitious business name to conduct your business and Social Security number.
- Partnership. Partnerships can take various forms, but a simple partnership is similar to a sole proprietorship, except with two people.
Considerations Beyond Legal Structure
You have many decisions to make when you are starting your business. You need to consider the issues of liability and taxes. Although your business formation is important, you also need to decide on other matters, such as choosing a legal name, a manager or director, if applicable, officers and any business licenses you may need. A business attorney can help you make these decisions to get your business off on the right foot.
- Winding up a business or selling a business can be a complex process
- Preparing a good buy/sell agreement in advance can be critical to the successful transfer of a business upon sale or death and can be highly important to the continued long-term success of the company