LLC stands for limited liability company, and it is an incorporation option in California. An LLC requires that you file articles of incorporation and name your members and registered agent. You will also need to have an operating agreement and separate business financials. An LLC is a common incorporation option in California because it is an option that even smaller businesses can use to gain the benefits of incorporation without having to go through all of the hoops that are required with some more complicated structures.

If you are not sure if an LLC is the right choice for your business or if you have questions about incorporating, our firm can help. Reach out to our team today to schedule a time to talk with us about your situation and find out what your options are.

What Is a California S-Corp?

S-corporation structures are allowed in California, and the name comes from how these businesses are taxed. S-corporations have to file a special form with the IRS known as S tax. This allows the business to qualify for pass-through taxation, which means that the company functions similarly to a sole proprietorship for tax purposes. The steps to form an S-corporation are largely the same as forming an LLC, with the difference of a few forms specific to S-corporations.

What Are the Benefits of Incorporating?

There are several benefits to incorporating, but one of the main ones is that there is no personal liability when you are incorporated. The incorporation status makes the company a completely separate entity. This means that you can’t be sued on a personal level or have your personal assets attached if there is a dispute that involves the business. Incorporating your business can also have some tax benefits, and it’s a common move if a business is likely to be sold later on.

How Do I Know Which Option Is Best for My Company?

When you are reviewing the different corporation structures, it can be confusing to understand all of the differences and decide on the one that is the best option for your business. That’s where a business attorney comes in. They can talk with you about how your business runs and what you want to achieve through incorporation and then suggest a structure that aligns. An attorney can also help you prepare and file all of the documents associated with incorporation, so you can be sure that everything is done correctly and in a timely manner.

If you’re ready to take the next step with your business and start the process of getting incorporated, you need an experienced business attorney from Southern California. Our law firm serves clients in and around the Los Angeles area, and you can call us at 323-230-6200 to find out more.