Decades ago, California households often included dads who left their houses each morning to go to work, and mothers who stayed home to cook, clean and otherwise care for their families. Today’s family and business landscapes are much different, with many families including two full-time wage earners. In addition, self-owned businesses have become natural parts of the nation’s marketplaces, and business formations are important topics to those considering such endeavors.
When preparing to launch a business, a prospective owner must decide what type of structure a business will have. To do so, it is necessary to define one’s immediate and long-term business goals. Structures vary and each entrepreneur must determine what is best suited for his or her particular circumstances.
Many business owners have found it beneficial to seek guidance from business and commercial law attorneys to help plan their companies and prepare start-ups. An attorney can provide information regarding taxes and liability, as well as state and federal laws that may be pertinent. Whether one’s business should function as a sole proprietorship, a partnership or a corporation is also a matter an experienced attorney is prepared to discuss.
A person who can not afford to risk being held financially liable for a business may want to avoid sole ownership. As for tax options, corporations tend to have more options available than privately owned businesses. However, operating as a corporation may incur costs beyond that which a partnered business might include.
California entrepreneurs may face many challenges during the business formations stages of their companies. Questions arise that need answered and obstacles may cause delays. Often, retaining guidance and assistance from a skilled business attorney helps prospective business owners save both time and money.
Source: entrepreneur.com, “Choose Your Business Structure“, Ameen Khwaja, Accessed on July 13, 2016