Are you considering forming a C Corporation in San Diego or Southern California? Is the selection of C Corporation the right alternative for your new business entity? How can the experienced business formation attorneys at the Watkins Firm help with your new corporation?
San Diego Business Formation and Corporate Attorneys with More than 40 Years of Experience
The Watkins Firm are San Diego business formation and corporate attorneys with more than 40 years of experience. We have helped to form thousands of corporate entities and are prepared to help with your goal of forming a C Corporation in San Diego or Southern California.
This is an exciting time, and it is important to ensure that you implement the best corporate entity based upon your plans and goals for your new company. Is the C Corporation the best option for your new business? What is the primary difference between a C Corporation and an LLC or S Corporation?
Generally speaking, the C Corporation provides the structure necessary to conduct business across international boundaries, and to attract investment from hundreds or thousands of individuals as your company grows. The C Corporation provides different forms of stocks, controlling the voting interest and influence of the different classes of investors and shareholders you intend to involve in your new business. It is also possible to select a “fiscal” tax year for the C Corporation instead of a calendar tax year. This provides additional flexibility and advantages when accelerating or decelerating income or expenses (losses).
If you are starting a new C-Corporation in San Diego, you should avoid download forms sites for your corporate documents. California law provides what many perceive to be an unbalanced bias toward minority investors, and your corporate documents must be carefully crafted to protect your business interests.
Venture capitalist will almost never invest in an LLC, and cannot invest in an S-Corporation. There is also a much stronger flexibility with regard to allocation of business revenues and re-investing in your corporation without the need to pay taxes or distribute income. C-Corporations provide the greatest separation of personal assets from business debts and liabilities, while ensuring the greatest flexibility as you expand your company or when you choose to sell the business.
The Advantages of a C Corporation Entity
There are many reasons why an entrepreneur should select a C Corporation for their new business entity. Forming a C Corporation in San Diego or Southern California provides the protections of the corporate veil and limited liability. The corporate veil protects shareholders personal assets from the liabilities of the C Corporation entity. There is no restriction on the number of shareholders in a C Corporation which provides the potential to raise substantial investment in the company.
While there are some increased regulatory requirements, substantial recordkeeping regulations and required reporting the C Corporation is an entity that can facilitate rapid growth and expansion as well as international business.
However, you should seek the advice and counsel of the experienced San Diego business attorneys at the Watkins Firm who can help you to make sound decisions as we guide you through the process. The Watkins Firm has helped thousands of new businesses to form across more than four decades. If you are considering starting a C-Corporation in San Diego, or seek guidance on a new business startup 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.
