Starting your own business is a challenging yet exciting journey. Those who launch and successfully manage businesses display entrepreneurial spirit and tremendous resilience. While turning a concept into an incorporated organization is a great achievement, it can be complicated, lengthy and expensive. Becoming incorporated requires detailed knowledge of the laws and regulations in the US state in which you want to register the business. When based in Los Angeles, or anywhere in California, such knowledge is a must. In this article we’ll dive into the details of the incorporation process, its implications and the information you need to consider in order to make the best decisions for business success in the region.

When moving to establish a business, it’s critical that you consider the type of entity to set up. Depending on the type of incorporation, your legal and financial obligations differ, and a company’s legal form has both tax implications and personal liability on the directors and shareholders. Generally speaking, the three most common types of incorporation in the United States are limited liability companies, S Corporations, and C Corporations. It’s highly recommended to consult with professional business lawyers and tax advisors before making a decision.

If you choose to set up a limited liability company, one of the many advantages is that the shareholders are only liable for debts up to the amount of money they invested in the company. The financial liability of the members of the LLC is said to be “limited”, hence the name. An S Corporation is a unique type of incorporation that combines the limited liability of a corporation and the tax benefits of a partnership or sole proprietorship. With such type of corporation, the members’ liability is limited, and the business is allowed to pass corporate income, losses, deductions and credits on to the members’ individual tax returns. C Corporations are the most popular form of business in the United States, and are eligible for all tax benefits that are usually enjoyed by LLCs, individuals, partnerships, and sole proprietorships.

When based in Los Angeles, the incorporation process is regulated by the California Secretary of the State. You will be required to complete a Statement of Information in order to incorporate and publish your company’s Articles of Incorporation. This will then have to be filed with the Secretary of State and other agencies on the county and federal level. It’s crucial to adhere to all the due dates set, and to make sure that all the tasks you have to complete are taken care of. To help with the process, business lawyers in Los Angeles can provide invaluable guidance throughout the entire launch process: from selecting the right type of entity and mapping out business operations to completing filing requirements. When looking for business attorneys in Los Angeles, UpCounsel is a great place to start. With access to experienced lawyers, clients can find the support they need for their business.

As you can see, the incorporation process is complicated, and there’s no question that both legal and tax implications should be considered before launching your business. In addition to the information mentioned above, you’ll also need to set up insurance for your business, draft any internal agreements you may need, and figure out ways to structure your operations. By understanding the process and seeking guidance from business lawyers such as those found on UpCounsel, you can confidently move forward and create the entity you’ve been dreaming about. With the right steps and the right attitude, you’ll be able to launch your business and grow it to a successful venture.



Starting a Business,