Are you thinking of forming a new business? One of the first critical decisions you will encounter is the choosing the right entity for a new company. Should you be an LLC? What is the difference between a C Corporation and an S Corporation? Are you planning to start a non-profit, and if so how do you establish that structure and what notifications must be provided to the IRS and California’s tax agencies?
The structure of your company will make a substantial difference on the net amount of money you get to keep each year, and the tax liabilities you will carry when business goes well. The decision between an LLC or another type of corporation is based upon the nature of the business to be conducted, the scope of the operations (number of employees, distribution, future growth plans), and the volume of profit you expect to generate. Choosing the right entity for a new company in San Diego or throughout California should also be guided by the number of owners involved in the business and the relationship between them.
Finally, downloaded forms (or forms you try to copy off of the internet) are basic and generic. Here in California we have unique corporate laws that these forms simply do not address. For example, minority business owners are given substantial powers unless these issues are addressed specifically in the corporate documents.
The Watkins Firm has helped to start thousands and thousands of new business entities over our more than 40 years of service. My name is Dan Watkins, and when I sit down with a new business owner, there are literally dozens of optional decisions to be made about how you intend to conduct business. Those decisions dictate the terms that must be present in the corporate documents.
You need proven, experienced guidance when choosing the right entity for a new company in San Diego or anywhere in California. We invite you to review our recent podcast Episode 34 – Business Formation as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
We have over 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and throughout California. Chances are we have helped to form and advise several companies just like yours. We can share the strategies that have brought success, guide you around potential pitfalls, and introduce you to a network of other professionals and business people who can help your company to succeed and thrive.
