Business Formation Attorney in Los Angeles
Business and Corporate Planning
Matthews Law Firm provides representation not only to businesses and employees when they are involved in disputes, but also to those who are seeking to start a business or formulate a new structure for their business. This is generally known as business formation or business planning. Without the correct business entity, your business won't be off to a good start. Our firm is passionate about your success, and we want to help you get there without being damaged by liability and tax issues.
One of the first things that you will have to decide, with the assistance of a Los Angeles business attorney from our firm, is what legal structure your business is going to have. Are you going to be an incorporated business? Are you going to choose a limited liability company? These decisions come down to more than just picking and choosing. You need to make the right choice for your business' goals, its employees and its future. Our firm can also help you deal with the Internal Revenue Service (IRS) to ensure that all of the necessary tax forms are filed.
Choosing a Business Entity
Listed below are the various types of business entities and structures. You may already know which structure you want for your company or you may not. Either way, our firm is here to help you plan and take the necessary steps to form a legitimate business.
This type of business entity is for those who wish to both own and run their business. In essence, this means that the Chief Executive Officer (CEO) is also considered to be the business itself. As such, the sole proprietor is the only one responsible for the business' losses and debts.
With a partnership, there is a group of people that forms a company. The agreement that forms the partnership must have been entered into by two or more people and a written agreement is necessary. Since the partners own the company, they are all collectively liable for losses and debts.
This type of business entity is very similar to a general partnership. The main difference is that there is a distinction between limited partners and general partners. Limited partners are actually somewhat similar to shareholders in a company- they have no management authority but may be liable as far as their involvement.
Corporations are established by legislation. Corporations can either be for profit or non-profit. Legally, these types of business entities stand as incorporated. In a sense, corporations are viewed as singular people that have both rights and responsibilities.
Limited Liability Partnership (LLP)
This type of entity has elements that are similar to partnerships and corporations. An LLP will have partners that are either all at limited liability status or only some of them will have limited liability. It is important to note that each state has its own regulations for forming LLPs.
Limited Liability Company (LLC)
LLCs did not begin to show up in the United States until the late 1970s and early 1980s. In the United States, LLCs are not considered corporations. Limited liability companies are more like partnerships, and for tax and liability purposes, are treated as such.
Contact Our Los Angeles Business Law Firm
Mr. Matthews of Matthews Law Firm Inc. has been practicing business law for more than 20 years. This level of experience has helped him gain the knowledge necessary to help individuals and groups as they attempt to form business entities the right way. You want your business to succeed, and so do we. To learn more about business planning and how our firm can help, contact us today.