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Is An S-Corporation

Right For You?

If you are considering starting a business, an S-Corporation might be the best option for your specific needs. This website will explain all of the benefits and disadvantages of an   S Corporation. You can also file your S-Corporation in just minutes.

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  • Why Choose An S Corporation?

    S Corporations and Limited Liability Corporations (LLCs) are similar in numerous ways. S Corporations are more restrictive than LLCs. S Corporations differ by the taxation, size of the corporation, the ownership, transferability, management and the duration of existence. Over 60% … Continue reading

  • S-Corporations 101

    S Corporation S Corporation is a type of legal entity that divides its income and loss among shareholders, who are liable to file their own tax returns. This also means that S Corporations are exempt from double taxation because they … Continue reading

  • S-Corporation Benefits

    S Corporation Benefits An S corporation is a great option for small business owners. This is mostly because an S corporation offers the tax advantages of a partnership along with the liability advantages of a C corporation. Limited Liability As … Continue reading

S- Corporation Formation Rules

S- Corporation Formation Rules Starting a business as an S-Corporation allows business owners to enjoy the benefits of limited taxation. S-Corporations generally do not have to pay Federal income taxes. Under this business structure, the income or losses of the … Continue reading

Why Should Someone Incorporate Their Business?

Why Should Someone Incorporate Their Business? The reasons why someone should incorporate their business are numerous and relatively straightforward. Regardless of the type of business or service offered, elements of monetary and asset liability is always present, as is the … Continue reading

Texas S Corporation Formation

Texas S Corporation Formation FAQ Forming an S corporation in Texas has its advantages and disadvantages. Texas S corporation shareholders will reap the benefits of potential tax savings, reduced liability and risk on behalf of the owner. To protect personal … Continue reading

In California, a limited liability company (LLC) is a business organization in which the personal liability of its members is very limited in regard to the company’s debts or any court judgments made against it. LLCs are also in a position to offer their members tax advantages, such as permitting them to report the company’s profits and losses on their individual tax forms. In California, they must abide by the regulations found in the state’s Corporations Code.

Forming an LLC

As is the case throughout the United States, an LLC in California may have one or more members, and an LLC is established when the required form (the articles of organization) is submitted to California’s Secretary of State. The LLC will also need am operating agreement, a contract agreed to by the member that indicates how the business will be run. It may also contain other requirements, including the way in which new members are added and how the members will share profits and losses. All members must also be notified that the LLC is required to pay an annual franchise tax to the state.

Choosing a name for an LLC

Under California law, the name selected for the business cannot duplicate, or be similar to, the name of another company registered in the state, and it may not be worded in a way that could mislead consumers as to the LLC’s purpose. In addition, certain words—including “insurance company,” “bank,” “corporation” and “trust” may not be part of the company’s name.

Record-keeping regulations in California

State law requires all LLCs to maintain essential records as long as they continue to do business. They include an up-to-date list of the members’ names and addresses, information regarding the financial contributions made by the members, a copy of the operating agreement and the articles of organization, and a copy of the company’s financial statements and tax records for the past six years.

Every LLC needs a registered agent, a resident of the state who has the authority to receive official documents on behalf of the business. California law also requires LLCs to file a yearly statement that lists the names and addresses of managers, members and registered agent, as well as a confirmation of the company’s name and operating status.

LLC liability

Note that when a member controls the LLC’s finances and that individual’s personal finances are combined with those of the company, this is referred to as “alter-ego liability,” and the member is personally liable for those debts.