Business Formation & Counseling Attorney

A full assessment of your business plan and recommendation for a business entity type is part of business formation and counseling. We explain why you should form a limited liability company (LLC), a limited partnership (LP), or a C or S corporation for your firm. Bottom Line Lawyers will also design and file the appropriate documents to create your business and advise you on a family succession plan.

Our corporate/business practice helps and represents our clients in all aspects of setting up and running a business, such as:

• Corporations’ Organization
• Partnerships and Limited Liability Companies
• Limited Liability Companies and Partnerships
• General Partnerships
• Closely Held Corporations
• General “C” Corporations
• Business Acquisition
• “S” Corporations
• Non-Profit Corporations
• Buy-Sell and Other Agreements
• Litigation of Business Disputes

What are the types of Business Structures in Auburn, CA?

Before starting a small firm, you will need to choose its ownership structure. LLC, corporation, partnership, or sole proprietorship: There are benefits and drawbacks to each, and it pays to take the time to compare them to find out which one will give you the type of liability coverage you want and the tax, financing, and economic advantages that are best for the line of business you have.

Sole Proprietorship

A sole proprietorship is a one-person firm that is not registered with the government, unlike a limited liability company (LLC) or corporation. To establish a sole proprietorship, you do not need to do something special or file any paperwork; you simply go into business for yourself.

A sole proprietorship is legally inseparable from its operator; the business and the owner are the same. This indicates that the business’s profits and losses are reported on the owner’s personal tax return, and the owner is personally accountable for any business-related liabilities, such as debts or court judgments.

Sole proprietorships make sense for small businesses where you aren’t likely to be sued and won’t need to borrow many funds for inventory or other costs.

Partnership

A partnership is a firm that two or more persons hold. When firms are established in this manner, each partner often contributes to the company in some way. In exchange, they share the company’s gains and losses. Most partners have partnership agreements in place to assist avoid such problems.

These documents, while not legally necessary, are useful since they generally specify:

• How will choices be made
• How will earnings and losses be allocated
• How to Dissolve a Partnership
• Limited Liability Company

Limited liability corporations, sometimes known as LLCs, are a type of hybrid corporate form. Businesses benefit from the advantages of corporations and partnerships when they organize in this manner.

An LLC’s owners or members are entitled to a percentage of the company’s revenues and losses. On the other hand, members may not be held personally accountable for certain activities against their corporation.

Corporation

Contrary to the other choices for business structure, corporations are independent legal entities that are not reliant on the owners or shareholders. As a result, neither the activities of the firm nor any debts it accrues may be brought against the shareholders in court.

Compared to the other choices, creating a corporation involves additional steps, and corporations are subject to IRS registration requirements and state and federal tax obligations.

When Do I Need a Business Formation and Counseling Attorney in Auburn, CA?

A start-up business has just begun making sales. As soon as you have more than one client, you’ll need to register your business with the state and get a tax identification number as well. Once you’ve received this information, you’re ready to start filing taxes (which are due quarterly), keeping records, and paying yourself (hopefully!) from earnings. You’ll also need to set up an LLC, corporation, or other legal entity to protect your personal assets.

If the above sounds intimidating or overwhelming to you, you might want to consider hiring a business formation and counseling attorney. Such an attorney can guide you through the steps necessary to form your business and keep it running smoothly for years to come.

If you decide that setting up your own business is right for you but want some help along the way, a  Placer County Business Formation and Counseling Lawyer can be invaluable in helping you figure out what type of entity to set up and how best to do so. A good attorney will also guide you on how best to run your business, both ethically and legally, so that all of your bases are covered.