An LLC is a type of structure that is available to businesses that are being created in the state of California. It stands for limited liability company. Business owners often choose to create an LLC for their company as a way to separate their personal and business identities. This ensures that any business liability issues don’t put their personal assets at risk, and it can also make the taxation process more streamlined.
If you’re not sure which type of business structure is the right one for your business, you can talk over your options with a business law attorney. Contact our law firm today to schedule a meeting with a member of our team. We can discuss what you want out of your business and which structure best fits those needs.
What Is an Inc?
When you see the abbreviation Inc. after a business name, it stands for incorporated. This notes that the business is officially incorporated, and if the business is located in California, it will be registered with the Secretary of State. Having Inc. after the business name also indicates that the owner or owners have taken steps to separate their personal and business assets for liability purposes.
Is an LLC the Same as an Incorporation?
No, while an LLC and an incorporation may be created for the same purposes, they are a little different. The main difference is in how they are owned. An LLC is owned by the individuals who formed the business. For example, if two people start a business by jointly pooling their money to buy materials and lease a business location, they might create an LLC for their business to protect them from any personal liability. An Inc. is owned by shareholders, and this often isn’t the people who actually created the business.
How Do I Create an LLC or an Inc?
Creating a business with either of these structures involves coming up with the business details, such as the business name, location, and who has an ownership stake, and filing the proper documents with the state of California. There are also financial and tax preparations to be done, such as requesting an employer identification number from the IRS. If you’re not sure what you need to properly structure your business or want some guidance along the way, a business law attorney can handle all of this for you.
Contact our law offices by calling 323-230-6200 to schedule a meeting and find out more about whether an LLC or an Inc. might be right for your business. Our firm has experience with a variety of business structures and can provide information on counsel on your options.
