Formation of Business Entities

Formation of Business Entities in Menlo Park, CA

Choosing the Right Structure for Your Business

When starting a new business, you must decide what type of business entity you want to establish. Choosing the right structure for your company or corporation can help you maximize your chances of financial and operational success. Legal and tax considerations will also enter into selecting an appropriate business structure. At Flicker, Kerin, Kruger & Bissada LLP, our business lawyers provide comprehensive representation for clients who wish to form a new business in the Bay Area.

Types of Business Entities

The most common types of business structures include limited liability companies (LLC), C corporations, S corporations, partnerships, and sole proprietorships. Each offers their own benefits, including:

  • Limited Liability Company (LLC) - In a Limited Liability Company (LLC), personal assets can be separated from business debts, and there is no limit to the number of owners. Additionally, owners are not required to hold annual meetings and the company is governed by operating agreements.
  • C Corporations - Like Limited Liability Companies, personal assets can be separated from business debts in a C Corporation. Similarly, there is no limit to the number of shareholders. In these business entities, tax and legal structures are separate from the owners and the company can deduct fringe benefits from taxes.
  • S Corporations - In an S Corporation, personal assets may be separated from business debts. Additionally, owners report their share of profit and loss on personal taxes. An S Corporation can attract investors through the sale of stock, giving directors, shareholders, and officers limited liability.
  • Partnerships - In most cases, there is no state filing required to form a partnership. Partnerships are typically easy to form and operate, and owners report their profit and loss on personal taxes. In a partnership, the general partner maintains management control.
  • Sole Proprietorships - Like a partnership, Sole Proprietorships do not require state filing and are easy to form and operate. The owner must report profit and loss on personal taxes and maintains full management control of the business entity.

Awards

Over the years, Flicker, Kerin, Kruger & Bissada LLP has cultivated a reputation for excellence in the legal field. With a focus on complex and high-asset cases, we provide innovative legal strategies for our clients - always placing their best interests at the forefront of each legal matter. In addition to the gratitude of our clients and the respect of our legal peers, our firm has garnered the attention of many prestigious legal organizations.