Business Formation in San Ramon, CA
Establishing a Contra Costa County Business
If you want to start a business, you may be wondering which type of company
is best for your situation. There are many different options for you to
pursue, each with its own advantages and disadvantages. To ensure that
you choose the right one, you should contact one of our San Ramon business
lawyers at Blackwell, Santaella & Jahangiri LLP. With our knowledge,
you can trust that our legal team will give you wise advice as you are
planning. Depending on your specific situation, you may want to pursue
the creation of one of the following types of business:
Sole Proprietorship: This kind of business is the simplest to set up, as no papers need to
be filed to begin. You simply start doing business. For a small business
with exposure to minimal risk, a sole proprietorship may be acceptable.
Since sole proprietorships offers no protection to the owner, however,
any lawsuit puts your personal assets including your home, car and bank
accounts at risk. To avoid this, most individuals want to consider a more
formal business entity.
General Partnership: This is a relatively informal business entity. General partnerships do
not require documentation to come into formation; however, it is always
a good idea to document relationship and responsibilities with a written
agreement. These do not provide any asset protection.
Limited Liability Partnership: This option requires at least one general partner and one limited partnership
to create. To form this type of business entity properly, documentation
must be filed with the Secretary of State. A limited partnership is best
used when someone intends to be a "silent partner" or "money
man." The general partner runs and manages the business while remaining
personally liable for the business. The limited partner, on the other
hand, cannot participate in daily management and has no personal liability
for partnership debts.
Corporations: This provides personal liability protection for all shareholders. If
certain formalities are not adhered to, however, the protection can be
lost. The corporate structure is simple: the shareholders own the business,
and they elect a board of directors who oversee the long-term objectives.
The directors appoint officers who run the daily business. The corporation
is a distinct and separate entity from its shareholders; this distinction
is what provides for the protection, because the corporation is liable
for corporate debts, not the shareholders. Once the decision to form a
corporation is made, there is a second decision to make. You need to choose
between a C-corporation or sub chapter S corporation. There is no difference
between C and S corporations for the purposes of liability. It is merely
a tax election, which can often save money.
Limited Liability Company: LLCs generally provides the same liability protection as a corporation
but can have different tax consequences. It is often said that an LLC
is more flexible than a corporation. Moreover, the tax liability can be
more substantial than a Subchapter S corporation. It is important to discuss
your business needs with an attorney or accountant before you elect to
become an LLC.
Counsel from Our Knowledgeable Business Attorneys
Before you establish your business, it is vital to meet with our legal
team. We can discuss your specific situation and any business needs you
want to meet. The San Ramon business formation lawyers at Blackwell, Santaella
& Jahangiri LLP take as much time as is necessary to make sure that
you are secure in your decision.
Speak to our firm
as soon as you can! We proudly offer our services in both English and Spanish.