Form Your Business The Right Way
No matter what size your business is, our attorneys can help you establish it legally and pave the way to a successful future. The business lawyers at Joshi Law Group in San Diego are passionate about helping our clients make the best decisions for their companies.
How Can You Structure Your Business?
While we’re able to help you decide one-on-one which structure is right for your enterprise, it can be helpful to know what options exist in California. We can work with you on a wide variety of small-business structures, including:
- What: The easiest to set up, sole proprietorships require no filing fees to exist and may have a single owner.
- The advantage: It’s easy, simple and cost-effective to set up.
- The risk: The owner is personally responsible for any liabilities of the business, such as debt or court judgments regarding the business.
- What: A business entity owned by one person, an LLC offers some protection for the personal assets of the business owner.
- The advantage: An LLC offers the proprietor some protection from personal liability.
- The risk: The entity must be filed with the state and filing fees must be paid, making it generally more expensive than a sole proprietorship to set up.
- What: This is a business owned by two or more people and requires no filing fees to exist.
- The advantage: Partnerships retain some taxation benefits because the profits are taxed to the individuals involved instead of to the business.
- The risk: Like a sole proprietorship, each partner is liable for any debts, claims and court decisions made against the business.
- What: An LLP must be owned by two or more people, but it protects the personal assets of the business owners more than a general partnership.
- The advantage: If investors and silent partners can maintain a nonmanagerial role, the LLP will offer liability protection for their personal assets.
- The risk: There must be a managing partner in an LLP who assumes liability for the actions of the partnership, including debts if the business dissolves.