Attorney for Business Formation in California
Starting a business is a massive undertaking. As a founder, you already have a lot on your plate. Navigating the complex legal intricacies of starting a business is something you shouldn't have to do alone.
With the help of Silicon Valley Technology Law Advisors as your attorney for business formation, we will ensure that you take the correct path in establishing your business, and put the right foundation in place.
What is an Attorney for Business Formation?
An attorney for business formation, also known as a company formation lawyer or an entity formation lawyer, will help you make the right choice in deciding what legal structure that your business will take.
The choice you make in determining your business structure will have a lasting impact on nearly everything about your business, from taxes and liability, to growth and ultimately the profitability of your business.
A skilled entity formation attorney can review your business idea, and provide specific and tailored advice on the best legal options for establishing your business. They will work with you to ensure that you have the correct documentation, forms, and any other information necessary to create a rock solid foundation for your business.
What Business Structures are Used in California?
Choosing the right business structure will depend on a variety of factors, including liability, taxes, control, and administration. The most commonly used business structures in California include:
Sole Proprietorship
The most basic form of business, a sole proprietorship is automatically formed when you conduct business activities without any other formal business registration. In a sole proprietorship, you have complete control of your business, however there is no separation between your business assets and liabilities, and your personal assets and liabilities. This can leave you vulnerable in the event of lawsuit or bankruptcy.
General Partnership
A general partnership is formed by two or more people who jointly share the business's profits and losses. All partners in a general partnership are liable for the debts of the business, even if the debt exceeds the amount one individual invested in the partnership. General partnerships are easy to form, with minimal formation costs.
Limited Partnership
In a limited partnership, there is a general partner with unlimited liability, while the other partners have only limited liability. The partners in a limited partnership may contribute financially to the business, but they don't get involved in the day to day operations of the business. Because of their limited liability, the limited partners do not put their entire worth at risk, as the general partner does.
Limited Liability Company (LLC)
A Limited Liability Company is a common structure that combines the benefits of a partnership and a corporate business structure. Forming an LLC protects your personal assets, such as a home, vehicles, and savings accounts from being seized to pay business debts in the event of bankruptcy or lawsuits. LLCs use pass-through taxation, which sees profits or losses “pass through” to the personal tax returns of members.
Corporation
A corporation is formed as a separate entity from its owners. The corporation itself is responsible for its own debts and obligations, not the individual members. Ownership in a corporation is determined by purchasing shares, with each share representing a piece of the company. Corporations are subject to “double taxation”, as the corporation pays taxes on its own profits, before paying dividends to the shareholders, who are then taxed on the dividends they receive. Corporations are best suited for large businesses who can benefit from selling stock. You are able to mimic the pass-through features of a LLC by making an S-election which must end if you sell more than one type of equity.
Why Use a Company Formation Lawyer?
With so many options available for business formation, choosing the right entity can seem like a daunting challenge. Retaining the services of a company formation lawyer is critical to ensure you make the right decisions - from the start.
At SVT, our job is to help you understand the legalities of starting a business in California, and advise you on the best options for your specific needs.
We can help you:
Choose the Right Business Structure
The structure you choose is the foundation of your entire business. We will help you understand the pros and cons of each structure, and determine the right fit for your business needs.
Draft and Negotiate the Right Legal Documents
There are a range of documents that must be prepared to successfully launch your business. SVT can help you draft registration papers, intellectual property registrations, and other documents essential to getting your business off the ground.
Understand Employment Law
As a new business, you will need to comply with employment laws and regulations for any employees that you hire. We can help you draft effective employment contracts that protect your interests, as well as provide legal advice when termination of employees is needed.
Why Choose SVT as Your Entity Formation Attorney?
For over 25 years, SVT has worked alongside or as in-house counsel to some of the most recognized tech companies in the San Francisco Bay Area. We've served as in-house general counsel for 15 of these years for companies like Shutterfly, Actuate Corporation, Accela and ClearDATA Networks. We have also supported companies like Amazon (Alexa), Apple and Dolby in other in-house roles supporting product development/privacy/engineering and sales.
We know the tech industry in and out, and will help you get your business started on the right foot. Our clients choose SVT as their entity formation attorney because we deliver:
Personalized Solutions
As your entity formation lawyer, SVT is committed to understanding your unique business idea, and helping you choose the right business structure for you.
Tech Industry Specific Advice
With 25 years of experience navigating the legal world of the technology industry, SVT has the knowledge to help you understand the taxes and regulations that apply to your business, as well as the licenses and permits that may be required to operate.
Looking for an Attorney for Business Formation Near You? Contact SVT Today
Getting your business off the ground in California doesn't have to be a struggle. SVT has the knowledge and experience to counsel you throughout the process, and help you make the right decisions that will provide a strong foundation for your business to grow.
Don't try to go it alone. SVT is the attorney for business formation you need to help you make the right strategic decisions. Contact SVT today for a FREE consultation.