BUSINESS FORMATION

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Business Learning Center
Our online learning center provides quick access to valuable information contained in our web site, California and Federal Codes, Court web sites and other legal sources of information.

Selecting the type of business entity: When setting up a new business, you need to first select the type of business entity that you will be conducting business under. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure and your form of business determines which income tax return form you have to file. The following chart will help you to understand the differences between the various forms of business entities that you may want to consider. Click on the type of company for additional information

Raising Capital       Type of Company Liability Operations Management SOLE PROPRIETORSHIP Unlimited Simple Proprietor Difficult GENERAL PARTNERSHIP Partners Simple Partners -- JOINT VENTURE Partners Simple Partners  --  LIMITED PARTNERSHIP Partners Medium Partners -- LIMITED LIABILITY PARTNERSHIP No Medium Members Possible LIMITED LIABILITY COMPANY No Medium Members Possible GENERAL CORPORATIONS No Difficult Board Stock S CORPORATIONS No Difficult Board Stock NON PROFIT CORPORATIONS No Difficult Board Difficult PROFESSIONAL CORPORATIONS No Difficult Board Stock