Are you starting a new business and are not sure where to begin? Zech Law has the knowledge and tools to help you properly set up the appropriate business entity.
In California you have a variety of entities from which to choose to protect your business and business assets. These span a wide range of options, including sole proprietorships, S and C corporations, general and limited partnerships, limited liability companies, joint ventures and strategic partnering relationships, professional corporations and unincorporated associations. In each case, exposure to liability must be considered when starting a business. Mr. Zech will give you the advice necessary to determine which entity type is best suited for your business, based upon your financial investment and management structuring.
We represent and advise clients in business start ups and issues related to entity formation involving the following:
When we sit down with you, we will assess your business goals and needs. We will advise you about the various forms of entities available, and how each form can impact you and your business, at both the organizational and operational level. We can also discuss any potential changes you anticipate your business may face in the future, including exit strategies, and which of the various organizational forms may best facilitate the changing needs of your business.
Once an entity is selected, we will help you fulfill the formalities necessary to create the business entity, including preparing the documentation. We ensure that the multitude of steps required to form your entity are completed. We will prepare and file your organizational documents. We will draft any necessary agreements between the parties, including by-laws, buy-sell agreements, partnership agreements, and operating agreements. We will assist you with the formalities of issuing ownership interests in the entity.
We do more than just prepare documents. For instance, if you choose a corporation, we will walk you through step by step your initial shareholder and board of director meetings. We will also provide you with the necessary information to ensure that you know the basic ongoing operational requirements for your type of business entity.
We can also assist with any other initial business need you may have, such as pre-formation agreements, conducting trademark or trade name searches, consulting on executive and employee issues, and modifying your estate plan to address your new business.
Contact us for an initial consultation.
When starting a new business, many would be owners are perplexed by the types of business available and which to choose. Understanding the various types can be overwhelming, so let’s take a moment to compare LLC and Corporation options.
When you incorporate a business, you evolve from a sole proprietorship (or general partnership) into a company that’s formally recognized by state the incorporation is filed in. It becomes a legal business entity of its own, separate from the individuals who founded it. A company structure often falls into two categories: a limited liability company (LLC), or a corporation (corp) which can be organized as an “S Corp” or “C Corp”. Each type has its own benefits, advantages and disadvantages, so it is important to choose the right entity type.
When deciding between a corp vs. LLC, the best choice for your business not only helps you start off on the right foot, but also acts as a foundation for your company’s ongoing success and growth. As you consider which business type is right for you, thinking both about your short and long-term goals for your company is advisable.
LLCs protect business owners from being held personally liable for the actions of the LLC. This limited liability typically protects you from the personal risks involved if a lawsuit were to arise concerning your business, safeguarding your personal assets. Other benefits of an LLC include:
Many business owners consider taxation to be the most noteworthy difference between S corporations and C corporations. In a nutshell, an S corp is a “pass-through” tax entity, like the LLC. In contrast, C corps are taxed as separate entities. They are also subject to “double taxation” if corporate profits are distributed to owners (shareholders) in the form of dividends. C corporations pay tax on their profits first at the entity level and then owners pay taxes at the individual level on profits received as dividends, resulting in the double tax.
Taxation and management are two distinctions between limited liability companies (LLCs) and corporations, but there are other key differences worth highlighting, including:
Zech Law is experienced on corporation organization and filing and will take care of all the details for you to get you started with your new endeavour. Contact us today for a free consultation.