top of page

Types Of Business Entities In California

Updated: Dec 29, 2022

Choosing What Type Of Business You'll Run In California

Now that you have made the decision to launch a business in California, you must now choose the type of business entity to create. Your choice of business entity will impact matters of ownership, taxation, responsibility, and state and federal requirements.


You can sort through these difficulties and choose the organization that will best help you accomplish your goals with the assistance of an experienced California Business Litigation Lawyer.


California Business Law Attorney

Types Of Business Entities In California

You may have a variety of options when it comes to deciding which California business entity to create. You should consider what business you want to operate, how many owners there will be, and how strategic it will be for your taxes.

If you're not sure about it, you should always consult with a California Business Lawyer before making any decisions. That said, here are the types of business entities that you can create in California:

1. Sole Proprietorship

A sole proprietorship in California is a business structure that enables one person to run and own it. A sole proprietor is in charge of the business's taxes and liabilities.


If you're starting a sole propriety business in a name other than the founder's, you should file a Fictitious Business Name (FBN) Statement.

2. Corporation


An independent legal entity from its owners is a California corporation. One advantage of creating a corporation is that it typically protects the owners from personal liability.


Nevertheless, corporate formalities must be scrupulously adhered to maintain this protection. Both the corporation and the stockholders are subject to taxes.


To ensure a smooth formation, have a California Business Law Attorney look through your business plan and potential founders to make sure incorporating is the best choice for you.


California Business Litigation Lawyer

3. Limited Liability Company (LLC)

An LLC business in California provides liability protection similar to that of a corporation, but it is taxed differently. One or more managers or one or more members may be in charge of managing an LLC.

4. Limited Partnership (LP)


Some partners may have limited liability under a California LP. There must be a minimum of one limited partner and one general partner. The dominating partner is the general partner.


Typically, the limited partner's responsibility is constrained by their level of involvement or control. An LP's general partners are personally liable for all debts and obligations of the LP.

5. General Partnership (GP)


A California GP is required to have two or more employees working for a profit. Each partner is responsible for the partnership's debts individually and collectively. For the partners, profits are taxed as personal income.

6. Limited Liability Company (LLP)


An LLP is a partnership that carries out the following activities:

  • Law

  • Accounting

  • Architecture

  • Engineering

  • Land Surveying

In short, an LLP provides facilities or services to a foreign LLP or a California-licensed LLP that does public accounting or law. In addition, an LLP must keep up with specific insurance coverage requirements.

Why Do You Need A California Business Law Attorney?

As mentioned, California's business entities affect how they're operated and taxed. As a result, liability can also change depending on your business type.

Some businesses also need to change as they grow or size down. For example, a sole proprietorship may grow and eventually need to incorporate for operations, liability, and tax reasons.

Hence, you want to ensure you choose the best one for your business, your co-founders, and your bottom line.


California Business Law Firm

Find A California Business Law Attorney in California

1000Attorneys.com offers an Attorney Referral Service Certified by the California Bar Association. We can refer a Business Litigation Lawyer fit to handle their unique case in California. Contact us via our 24/7 live chat (or complete our case submission form).

59 views
Best Lawyers Near Los Angeles

California State Bar Certified Lawyer Referral And Information Service

Welcome to 1000Attorneys.com, a Lawyer Referral and Information Service certified and approved by the California State Bar.

Our commitment is to provide you with unbiased and impartial lawyer referrals. Unlike other services, we maintain complete independence from the lawyers receiving these referrals, ensuring transparency and fairness.

While we specialize in California employment law and personal injury claims, we offer our referral services for various other legal areas.

 

At 1000Attorneys.com, we aim to ensure you are connected with best California attorney near you who can provide comprehensive and exceptional representation for your specific legal needs.

 

We understand that every legal situation is unique and are dedicated to finding the best match for you. With our extensive network of attorneys, we strive to deliver outstanding legal support and guidance tailored to your individual requirements.

At 1000Attorneys.com, we hold California attorneys to the highest standards of professional conduct. Your satisfaction and confidence in the legal representation you receive are paramount to us.

 

Rest assured that when you engage in our services, you can expect nothing less than exceptional legal support and guidance.

Why Lawyer Referrals Matter

 

The California State Bar investigates on average 16,000 complaints of professional misconduct by attorneys annually.

We conduct due diligence by researching and recommending the best local attorney for your case. 

 

Our team of experts verifies that attorneys are in good standing and have the required experience in the type of law related to your legal issue. 

Learn more about attorney discipline here:

 

Our History 

 

Since 2005, we have been dedicated to helping individuals find reliable legal representation in California.

 

We understand the challenges people face when trying to locate reputable lawyers, especially when inundated with self-promoting advertisements and biased marketing from law firms.

 

At our service, we strive to cut through the noise and provide a trustworthy and unbiased platform for connecting individuals with reputable California lawyers.

 

Our clients receive quality legal representation without the frustration and uncertainty often associated with legal advertising.

How the LRS Works 


Anyone seeking competent and honest legal representation in California, can request a FREE lawyer referral. 

Once you submit your case details online, our legal 24-hour legal department will review your claim and reply via email. Most cases are reviewed and answered within 15 minutes. 

 

A free 30 minute consultation with the attorney will be offered to each referred client. 

A representative will follow up a few days later via email with the client after receiving a referral for quality management purposes, or to obtain the status of the case. 

About lawyers from our network


California lawyers in our network are insured, in good standing with the California State Bar, and have substantial experience in their practice area.

 

Attorneys are available in most areas of law throughout Southern California. Every lawyer in or network has been vetted for:

  • Credentials

  • Education

  • Communication skills

  • Performance

  • Client reviews

  • Fair legal fees

  • Continuing education

  • Professional affiliations

Additionally, we conduct criminal  background checks and attorneys are always monitored by our service.  

How to find the best lawyer for your legal case: 

1. The fastest way to have your legal issue reviewed by one of our attorneys is to send your details online.

 

Your information will go directly to our 24 hour legal department bypassing our call center. You will get a reply via email within 15 minutes. 

2. You may also inquire about your legal issue via email. We respond to email inquiries within 24 hours M-F. 

3. By calling our lawyer referral hotline 661-310-7999. However, our agents are not attorneys and cannot provide legal advice. Due to high call volumes, it's highly recommended that you use option # 1 above. 

california state bar lawyer search.png
bottom of page