Incorporation 101: Which Business Structure is Right for Your Organization?

Incorporation 101: Which Business Structure is Right for Your Organization?

When beginning a business, you must decide what form of business entity to establish. Your form of business determines the amount of regulatory paperwork you have to file, your personal liability regarding investments into your business, and the taxes you have to pay. There are many types of corporate entities. Your initial choice of a business type is not permanent. You can start out as a sole proprietorship, and if your business grows and your risk of personal liability increases, you can convert your business to an LLC.

There is a common misconception that incorporating requires hiring and paying for an attorney. Not true. You can prepare this yourself and do all the work, but you should be very aware of and understand the requirements of the state in which you intend to incorporate. To make incorporating an easy transition, have California Document Preparers help you–we also file all the paperwork.

Confused about the difference between an S-Corp and an LLC? Visit our Busines Page, or contact one of California Document Preparers’ three offices. We help our clients understand the intricacies to make informed decisions about which business structures are right for them.

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