Business Law Attorney In Riverside, CA
Attorney Marc L. Weber has been practicing law for over four decades in the state of California. Serving residents throughout Riverside and other cities in Southern California, he has built a strong reputation for himself and provided legal assistance to hundreds of clients who have found themselves facing the complexities of business law. Attorney Weber understands the challenges and rewards that every business owner and entrepreneur is likely to face, and knows where the pitfalls lie and how to avoid them. Read on for general information about starting a business and choosing a business entity in Riverside, CA.
Starting A Business In Riverside, CA
There are several steps and important decisions that must be made early on in the process of starting a business. The design, structure, and execution of certain documents is critical to the long-term success of a business, and can help a business owner prevent unwanted or unforeseen threats to future success. There is no definitive guide to starting a business; every entrepreneur’s path is built around their specific needs and professional goals.
Every business needs a plan that addresses all aspects of the business. This plan should generally include a definition of the nature of the business, sales and marketing strategies, financial projections, market analyses, product and/or service descriptions, organization and management blueprints, and a funding request. While it may sound relatively straightforward, it can be challenging to even know where to begin. Many people find themselves overwhelmed early on, as each category in a business plan involves technical language and requires thorough considerations of the laws that apply. For this reason, it would be well-advised to hire an experienced business law attorney who can assist in the formation of the plan and answer any questions that may arise in the process.
Which Business Structure Is Best?
The question of which business structure is best is very common, but there is no one right answer. The ultimate decision to choose one structure over another will depend on the business structures that are available under the law in Riverside, CA, the specific aims of the entrepreneur or business owner, and the type of business being created. A knowledgeable business law attorney such as Marc L. Weber can provide individuals with clear and concise explanations as to what each business entity entails. The following is a brief explanation of the business structures in California:
- Corporation- A California corporation is created by filing a certificate of incorporation with the Secretary of State. It is considered a legal entity that exists apart from the owners, which means it will continue after the death of the owners. A corporation limits personal liability for the owners, and taxes are imposed on the corporation and shareholders.
- Limited Liability Company (LLC)- In California, an LLC is created by filing Form LLC-1 with the Secretary of State. It affords personal liability protection for the owner(s), which means the owner’s personal assets will not be threatened should a lawsuit be brought against the LLC. An LLC can provide tax benefits not available through other business entities, which makes it an appealing option for many. An LLC also provides the owner with the option of converting to a corporation, which makes it a wise choice for an entrepreneur’s first company.
- Limited Partnership (LP)- A California limited partnership is created by filing Form LP-1 with the Secretary of State. There must be at least two people involved with a limited partnership: one who has primary control (general partner), and one who has a limited amount of control (limited partner). The general partner assumes personal responsibility for all business debts and/or lawsuits, while the limited partner assumes an amount of liability proportional to their control over the business.
- General Partnership (GP)- A California general partnership is created by filing Form GP-1 with the Secretary of State. There must be at least two general partners who share joint liability. The profits of a general partnership are treated as personal income for the partners and are taxed accordingly.
- Limited Liability Partnership (LLP)- A California LLP is created by filing Form LLP-1 with the Secretary of State. It carries the same tax benefits as an LLC, but differs in that at least one partner must assume liability for the debts and actions of the LLP.
- Sole Proprietorship- Unlike the abovementioned business entities, there is no requirement to complete and submit forms to the Secretary of State for a sole proprietorship. However, other filings might be necessary depending on the nature of the sole proprietorship. A sole proprietorship allows for one individual to own and operate a business. The profits are considered personal income for the owner, which means all profits will be taxed. In addition, the owner of a sole proprietorship is fully liable for the debts and actions of the business.
For advice or guidance on starting your business in Riverside, CA, reach out to business law attorney Marc L. Weber today.
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