5 Things to Consider When Starting a C Corporation in Los Angeles
The City of Los Angeles provides a robust and attractive business landscape for entrepreneurs looking to start a C Corporation2 min read
The City of Los Angeles provides a robust and attractive business landscape for entrepreneurs looking to start a C Corporation. Incorporating a business offers ownership and operation benefits, such as limited liability, managerial flexibility, perpetuity, ownership transferability, and taxation advantages. As such, understanding the details around starting a C Corporation in Los Angeles is essential to ensure your business’s success.
When deciding to incorporate a business, there are five primary considerations:
1. Legal Structure: Establishing the right business structure is critical for businesses that want to benefit from and comply with the applicable legal standards in Los Angeles. Decide whether to form an LLC, corporation, or partnership, as each structure and associated regulations offer unique advantages and disadvantages. Importantly, understand how taxation works for each of these structures.
2. Taxation: Taxes constitute an important consideration when starting a business in Los Angeles, especially when deciding whether to incorporate. When making the decision to become a ‘C Corporation’, you should be aware of the ‘double taxation’ of C Corporations. This means that C Corporations are taxed twice, once at the corporate level and again when dividends are issued to shareholders.
3. Naming the Corporation: Think carefully when naming your business. A name search should be conducted to ensure the desired name is not already in use. In Los Angeles, corporations must include either ‘Corporation’, ‘Incorporated’, ‘Limited’, or an abbreviation of one of these words at the end of the corporate name.
4. Registered Agent: Establishing a Registered Agent in Los Angeles is essential when forming a C Corporation. A Registered Agent is a person or company that has the legal obligation to receive and send out official documents, such as service of process, on behalf of the corporation.
5. Applying for Licenses and Permits: Before engaging in business operations, C Corporations in Los Angeles must apply for the necessary permits and licenses. Depending on the nature of the business, it is important to research what permits and licenses are applicable and apply as soon as possible.
By considering the aforementioned five factors when forming a C Corporation in Los Angeles, the process of becoming incorporated will be less cumbersome and your corporation will be more likely to succeed. Finding experienced legal counsel in Los Angeles is essential to ensuring your corporation is established in compliance with applicable regulations. With UpCounsel, you can easily access a wide network of experienced lawyers on demand to assist with the various complexities of forming and operating a C Corporation. From one-time consultation to an entire freelance legal department, UpCounsel’s attorneys are here to support you.