A LLC or limited liability company is a very popular type of business entity for small business owners because it’s easy to form and you don’t have to follow any corporate formalities. In California, creating a LLC is as simple as filing a one-page form with the California Secretary of State. However, the ease of formation is both a blessing and a curse. One of the main reasons business owners create a business entity in the first place is to protect themselves against person

When you go into business, you may hear a lot of acronyms being thrown around. One of these acronyms is “DBA.” I wanted to talk about DBAs because there’s some confusion about whether a DBA is a separate business entity and whether you need to get a DBA in the first place. I’ve even had clients tell me that banks insist that they get a DBA before opening a bank account--you don’t need a DBA for this! A DBA stands for “doing business as.” It’s also called a “fictitious busines

Today’s post will be about the differences between S-Corporations (“S-Corps”) and C-Corporations (“C-Corps”). To illustrate why someone will choose a C-Corp, we will go over a case study of an actual client that decided to structure her company as a C-Corp. Knowing the differences between S-Corps and C-Corps can help you decide which is right for you. Similarities and Differences Between S-Corps and C-Corps S-Corps and C-Corps are both corporations. That means, they are forme

When people go into business, they want to ensure that the assets that they worked so hard to build are protected in case something goes wrong. For example, if the business gets sued, the business owner wants to ensure that their assets, such as their house, their cars, and their bank and investment accounts are protected. One way to protect your personal assets are to form a business entity to shield your personal assets from any business liabilities. Business entities inclu

One of the most commonly asked questions business owners have when they start a company is whether they need a LLC. A LLC is a very popular business entity because formation is relatively simple and running an LLC requires fewer formalities, meaning that you can run an LLC the way that you like. What is a LLC? LLC stands for limited liability company. An LLC is a type of business entity. Another type of business entity is a corporation. LLCs and corporations are considered se

It’s the new year and maybe your new year’s resolution is to start a business this year. If that’s the case, you need to create a strong legal foundation. This helps protect you personally against the liabilities of your business and gives you the framework necessary to grow your business. Sole Proprietorships and Partnerships When you go into business for yourself, you’re considered a sole proprietor. If you go into business with someone else, you’re considered a partnership