Entity Formation . . . See What Saunders & Associates Can Do For You

Entity Formation

Deciding on the right type of business entity to form your California company is important to protect your personal assets and optimize tax savings. The wrong type of business entity can expose you to personal liability and potentially making raising funds more difficult.

The most common forms of business are:

Sole Proprietorships
S Corporations
Limited Liability Company (LLC)

Sole Proprietor
A sole proprietor is someone who owns an unincorporated business by himself or herself.

When forming a corporation, prospective shareholders exchange money, property, or both, for the corporation’s capital stock. A corporation conducts business, realizes net income or loss, pays taxes and distributes profits to shareholders.

S Corporation
S corporations are corporations that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes. Shareholders of S corporations report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. This allows S corporations to avoid double taxation on the corporate income. S corporations are responsible for tax on certain built-in gains and passive income at the entity level.

Serious female administrative manager in formal suit walking in office with digital tablet for checking office working process, confident woman business owner looking at window passing with touchpad
Portrait of cheerful young manager handshake with new employee.

A partnership is the relationship between two or more people to do trade or business. Each person contributes money, property, labor or skill, and shares in the profits and losses of the business.

Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a business structure allowed by state statute.
Owners of an LLC are called members. There is no maximum number of members. Most states also permit “single-member” LLCs, those having only one owner.

We represent clients throughout California. Our clients’ are our focus. We are committed to leveraging our combined knowledge and experience to exceed our clients’ expectations. Let us help you every step of the way. If you are wondering what makes Saunders & Associates different. The answer is YOU. Saunders & Associates is an excellent partner and guiding light for you, your business and legal needs.

Entity Formation . . . See What Saunders & Associates Can Do For You