Business and Corporate Practice

Helping You Reach Your Goals

 

We understand entrepreneurs.

We also understand how confusing it can be to launch a business enterprise, and to ensure compliance with all of the federal, state and local rules that will dictate how it must be set up and operate in various jurisdictions.

While a sole proprietorship offers the most flexibility and greatest freedom of all the business forms, there are a few drawbacks including a lack of liability protection and difficulty in obtaining financing, either debt or equity, to fund your enterprise. All income and expenses attributable to the business are reported on your personal income tax return, utilizing schedule “C.” 

A General Stock Corporation, Benefit Corporation, or Social Purpose Corporation, taxed as either an S corporation or a C corporation, offers both liability protection and increased ability to attract and secure both debt and equity financing. Corporate formalities, however, must be observed in order to keep any liability protection, so business owners must clearly understand those formalities. In California, all corporations operating within the state are subject to a “minimum” tax of $800 annually, whether or not any revenue is generated by the business.

Limited Liability Company, or LLC, is a common entity to select for business owners who wish to obtain liability protection, but do not wish to maintain the formalities of a corporation and do not need to attract a large number of potential investors. Easy to set up and easy to maintain, LLCs are often the “go-to” entity type for many business owners and can be set up with a “single” member, or with multiple members. As is true with corporations in California, LLCs operating within the state are also subject to a “minimum” tax of $800 annually, whether or not any revenue is generated by the business.

For Purpose Law Group has a dedicated group of experienced attorneys knowledgeable about the specific requirements to establish and operate all of these entity types, including partnerships, LLCs and corporations. If you are just launching your business, we have reasonable flat-fee packages for whichever entity types makes the most sense for you.

On an ongoing basis, we also offer Outside General Counsel services, to provide timely legal counsel to business clients in areas of need including employment, taxation and corporate compliance. Contact us, and we’re happy to help.