Regardless of your business pedigree, the outset of any for-profit enterprise requires sound legal expertise. Whether you plan on doing the lion’s share of your business in Northern California or beyond, your need for a Roseville business lawyer may well stop at Randhawa Hundal. We take our clients and their interests seriously, not least when they’re looking to make their dreams come true and bring a new product or service to market.
When assisting clients with entity formation, we endeavor to empower via a better understanding of consequences and procedures. What kind of costs and advantages should you associate with your options? How do you get there as efficiently as possible? Proceeding with a cursory assessment of your alternatives is never wise given the last important of your decision. We’ll assure you don’t have to go it alone.
Decisions about the kind of entity you wish to form should be an integral consideration amid initial business planning. Should you need general help with planning from a Roseville business attorney, Randhawa Hundal can provide you with timely and comprehensive assistance. One of our first steps would be a detailed discussion of your formative options and the various implications thereof. Under California law, for example, there are several alternatives wherein the differences may be significant to your bottom line.
While you may aim to remain a small or medium-sized venture, that doesn’t necessarily mean becoming a corporation is the wrong choice. Corporations are distinct legal entities whence compared to those founding the enterprise in question. This means that in addition to limitations against liability, the corporation could also exist beyond the deaths of its owners. It nevertheless subjects shareholders to tax liability.
Limited Liability Company (LLC)
While larger companies often adopt a corporate framework in a bid to generate capital via the sale of stocks and bonds, the LLC is still a popular option among a wide range of reputable businesses. Such companies are taxed differently and generally subject to some kind of operating agreement among management.
Limited Partnership (LP)
Such a partnership assigns liability (e.g. for debt) to different partners so that it is commensurate with the extent of their involvement. While general partners incur unlimited liability, a limited partner’s obligations would further depend on the nature of his or her involvement.
General Partnership (GP)
So long as at least two members of a venture are engaged in a for-profit enterprise, they may become a general partnership. By so doing, participants become jointly liable unless otherwise determined by law or claimant.
Limited Liability Partnership (LLP)
Only available to certain kinds of practices (like law or engineering), a limited liability partnership must by law maintain sufficient insurance as per its unique function amid the marketplace.
One of the most basic entities one can form, this entity assures that a founding individual is entitled to all profits while also remaining on the hook for taxes and other obligations. Given the heightened responsibility associated with this kind of endeavor, legal help may be especially advisable.
A number of forms may be found at the website for the California Secretary of State, but we strongly recommend legal consultation prior to making any final decisions. A complete conversation about how tax and other issues may impact the rest of your business plan may be appropriate, as well. The more homework you can perform at the outset, the fewer headaches you’ll incur over the long-term. To arrange an appointment, place a call to 916.580.3681 or fill out our web-based form located here.
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