Entering the California business world for profit can be a very exciting endeavor. Typically, however, it is not without its challenges. Understanding the different types of business formations and determining the advantages and disadvantages of each — according to one’s individual needs, resources and goals — is crucial toward developing a plan that has great potential for success.
Advanced technology makes it rather easy to launch a business in its simplest form. A few online clicks and a new company owner can hang a virtual ‘open for business’ sign that reaches millions within minutes. Whether considering online business or a brick and mortar dwelling, there are laws that govern such matters of which one will want to be aware before proceeding.
There are various types of business, including sole proprietorship, partnerships, corporations and limited liability companies (LLCs). Depending on one’s immediate and long-term business goals, the type of enterprise chosen will vary. It is not uncommon for a new business owner to begin as one type of company, then transition to another when needs and goals change further down the line.
In California, an experienced attorney would be able to discuss the laws and regulations concerning business formations in order to help someone make informed decisions as to the best course of action to take in a particular situation. Many existing business owners also have need of legal guidance when facing tax issues or problems with creditors. To avoid lengthy courtroom battles, it may help to seek legal assistance as soon as a problem arises.
Source: The Houston Chronicle, “Types of Business Formations“, Karen Rogers, Accessed on June 1, 2016