A Trusted Business Formation Lawyer
When forming a business, usually there are many legal requirements, hurdles and sometimes, litigation you need to get through. Thus, it helps to have the guidance of a certified business formation attorney along the way. During a business formation process, you need reliable support and professional advice for you to succeed in your entrepreneurial endeavors.
Getting the right guidance from someone that has lived the experience makes your business formation experience even better. With an illustrious legal career spanning more than 15 years, attorney Brian Coggins wears multiple hats among them that of being an experienced business formation lawyer.
Having started and grown his business to great success, he perfectly understands the considerations that need to be made and the legal intricacies at play when starting a business in Northern California. He is now focused on helping out individuals looking to start a business in California, to navigate safely through the legal aspects of business formation.
Business Formation Process in California
Business formation can be a thrilling yet nerve-wracking endeavor. The business formation process determines the extent of liability you have in that business, the types and number of investors you can bring on board, which local, state and federal tax laws affect your startup and even your business entity’s decision-making.
Attorney Brian Coggins continues to help clients with all sorts of legal needs prevail through the process of business formation. He can assist you to nail down your entity selection, file all the requisite paperwork, establish your entity’s business structure as well as to safeguard your business’s trademarks and intellectual property.
The upside of having a solid business structure from the onset is that the business structure comes in handy when the time for you to secure financing for your startup comes. Therefore, a professional business formation lawyer is a must-have if you are going to make well-informed decisions, that will serve your business’s current and future goals when you are forming a business.
Choice of Business Entities in California
The popular choices people make when forming a business in California are:
One upside of a sole proprietorship is that it is the easiest and most common business to start. On the other hand, its shortcoming is that it does not provide for limited liability. As a sole proprietor, you are responsible for all the taxes and liabilities your business creates; thus, you are under obligation to file your business’s profits and loss statements together with your income tax returns.
Under limited partnerships (LPs), there is at least one limited partner who is not involved in managing the business on one hand and a controlling partner who oversees and runs the business on the other. Limited partners are not liable for the partnership’s debts and obligations exceeding their initial investment into the business while general partners have unlimited personal liability for the partnership’s debt.
Limited Liability Partnerships
Limited liability partnerships (LLPs) are quite common in California. Mostly, it is persons engaging in professional services, for instance, lawyers, accountants and engineers who come together to form LLPs. The good thing about LLPs is that the business partners can divide labor, spread risk and reduce their liability for other partners’ actions.
Unless there is a provision in their legal partnership agreement stating that they should share obligations unequally, a general partnership is a joint venture where partners have equal right to control a business and share in the responsibilities, losses or profits of the business equally. All the partners are jointly liable for any profits or losses their partnership makes, and each partner also shares in the partnership’s tax obligations.
Limited Liability Companies
A Limited Liability Company (LLC) is one of the best business entities to start in California. The plus side is that the personal assets of the business entity’s owners are protected from the company’s debts or liabilities. A significant number of new businesses formed in California are LLCs for the reason that LLCs provide robust legal protection while allowing for more flexibility in financial management and corporate governance at the same time. Therefore, an LLC is a hybrid of the partnership and corporation models.
Separate and distinct from its owners, a corporation is a legal entity that is owned by stockholders and can borrow and loan money, sue or even be sued. Its organizers may set up either an S-Corporation or a C-Corporation with each one bearing different advantages and disadvantages. Small businesses that are designated as S-Corporations stand to enjoy pass-through taxation, whereas a C-corporations will always get taxed through shareholders when they pay federal income taxes and when the entity remits corporate taxes.
Contact A Business Formation Attorney in California to Assist with Your Company Formation
Attorney Brian Coggins is a certified legal expert with lots of experience, who is happy to handle all your business formation legal needs so that you can be left to focus on running your new business entity. If you are looking for help with the formation of your new business entity all over Northern California, Coggins Law is here for you. Feel free to contact us online today.
To get a free consultation, call Coggins Law Office on +1 (916) 270-2895.