Business Entity Formation

Trusted Counsel for Structuring Your Business

A business entity is a legally recognized structure that can be used to conduct business. Deciding which formation you will use is crucial and can have a significant impact on how your company grows and profits. Whether you are a first-time business owner or a seasoned entrepreneur, having a business entity formation lawyer by your side is paramount to help ensure your company’s success.

At White and Bright, LLP, our business entity formation lawyers offer a full range of business entity formation services for entrepreneurs. Working closely with each client to help them identify their business goals, we provide skillful advice regarding the advantages and disadvantages of each type of structure. With a commitment to developing long-term business relationships with our clients, we provide reliable resources and dependable counsel from the outset of your company’s formation — and every other step of the way.

Helping You Choose the Structure Right for Your Business

Starting a business is an exciting journey. But there are many factors that must be considered to help ensure its success. The type of business entity you choose can impact the structure of the organization, how it is taxed, and your risk exposure. In California, there are a variety of business structures that can be used to help entrepreneurs meet their objectives.

At White and Bright, we help clients set up the business entity that will best meet their needs. Specifically, business structures that can be set up in California include the following:

• C corporations — A C corporation is the most common type of business entity. These structures protect shareholders from personal liability, provide for certain tax benefits, and allow you to take deductions from the corporation.
• S corporations — S corporations are corporations that elect to be treated as pass-through entities for federal tax purposes. As with C corporations, they generally protect shareholders from liability. However, they are not “double taxed” like C corporations are.
• Statutory close corporations — Under the California Corporations Code, business owners can form a statutory close corporation. This type of business entity can allow for greater control by minority shareholders, flexibility in distribution of profits, and protection from liability.
• Limited liability companies — Limited liability companies, also referred to as LLCs, offer a number of benefits, including liability protection, pass-through tax status, and ease of formation. They can also give a small business enhanced credibility because they are set up as a separate business entity as opposed to being operated as a sole proprietorship.
• Limited liability partnerships — Limited liability partnerships, commonly called LLPs, combine various aspects of corporations and partnerships. They are a popular choice for licensed professionals who wish to limit their potential legal liability and have flexibility in determining their role concerning how the business is operated.
• Limited partnerships — Limited partnerships limit a partner’s liability to the extent of their investment in the partnership. Profits and losses are passed directly to the partners based on their ownership shares. While limited partnerships are not responsible for paying federal income taxes, individual partners are required to report income from their salaries or their share of the limited partnership’s income.
• General partnerships — It is always advisable to have a written partnership agreement in place to outline each owner’s rights and responsibilities. However, if two or more entrepreneurs join together to carry on as business owners, a general partnership can be formed by operation of law without a written document.
• Sole proprietorships — A sole proprietorship is a type of business entity that is owned and operated by one person. Although there are fewer formalities associated with this type of business structure, they are not necessarily ideal for owners who have plans to grow their businesses. While a sole proprietorship is not a separate legal entity, it’s essential to be aware that there is no protection for personal assets with this formation.

Whether you are organizing a partnership, limited liability company, corporation or other type of business entity, White and Bright's California business entity lawyer team will handle every aspect of formation. We assist our clients with drafting the operating agreements and bylaws, as well as securing business funding. We will also file the necessary paperwork with the State of California and IRS. In addition, our firm has very good working relationships with accountants and financial advisors — upon whom we rely to determine the best tax structure for the client’s particular business.

Counsel for Business Entity Formation and Ongoing Compliance

At White and Bright, our commitment to clients doesn’t end once the business entity has been established. We provide ongoing maintenance by advising clients regarding the necessary legal and regulatory requirements. Our firm can also maintain the entity documents as necessary to give you the peace of mind you need while focusing on your business endeavors. In addition, we offer continuous counsel for liability protection and tax implication matters — as well as business succession planning services.

Contact an Experienced California Business Entity Formation Attorney

If you’re starting a business or expanding an existing one, it’s vital to have a knowledgeable business entity formation attorney by your side to guide you through the process. At White and Bright, LLP, we are dedicated to working closely with our business clients to create tailored business plans that will help their companies thrive. We welcome you to contact us online or call us at (760) 747-3200 to learn more about the legal services we offer.