An LLC stands for limited liability company, and it is one way to structure a company so that you are not personally liable for any disputes that come up with the business and that your personal assets are protected. An LLC is a flexible way to structure a company because it allows anyone to be a shareholder, and it also allows for pass-through taxation, which can be of benefit to individual proprietors.
If you are considering forming a business entity, it is important to do it correctly and with a structure that makes sense for your business plan. The attorneys at our law firm can explain the differences between an LLC and a partnership in-depth and help you file your incorporation when you’re ready. To find out more about our business law services, contact our firm today.
What Is a Partnership?
A partnership is a type of business entity where more than one person owns the business. Partnerships typically involve the parties putting their resources, such as money or real estate, together to create the business. While the name may sound like a partnership is made up of two people, it isn’t limited to two. A partnership can have many owners, as is common with larger businesses such as law firms or medical groups
Which Option Is Better?
Both an LLC and a partnership can be good options for many businesses, and which one is the right choice depends on what your goals are for the business now and what you anticipate the company looking like and needing in the future. An LLC may be a better option for sole proprietors who are looking for more flexibility when it comes to how taxes are handled, and it can offer more comprehensive liability protection than a partnership.
How Can a Business Attorney Help?
Talking with a business attorney is an important part of creating your business. An attorney who is familiar with business law can help you better understand the different formation options and provide counsel on which ones may be the top options for your particular needs. A business attorney from Southern California can also take care of drafting all of the paperwork and ensuring it gets filed accurately with the Secretary of State. If you are entering into a partnership or a business formation that has more than one shareholder, a business law attorney can also ensure that everyone understands their legal rights, roles, and responsibilities for the company moving forward.
Before you take any formal steps to incorporate your business, it’s a good idea to talk with an attorney who has a solid understanding of the business formation laws in California. Our team can review your business plans and discuss your options. Call us at 323-230-6200 to get started.