When starting a new business, an entrepreneur should carefully select a business form. California recognizes many forms as valid, including sole proprietorships, partnerships, and several limited liability forms. Each of these business structures have benefits and drawbacks when it comes to starting and operating a business. At The Burton Law Firm, out attorneys can help you weigh the advantages and disadvantages of these business structures and select the best form to help you meet your business goals. This process of selection is called choice of entity. Factors like duration of the business, management structure, investor participation, tax implications, exit strategies and potential legal liability should all be weighed and considered before selecting a business form.
Through time, a business expands and evolves to meet new challenges. A growing business faces the task of continuing to provide a quality product or service while dealing with increased recordkeeping, more employees, and higher costs. Some of the business methods utilized when the company was small prove ineffectual or hinder the operation of a larger business. As the business changes, the business form itself can limit the potential growth and efficiency of the company. In these situations, the business may benefit by changing structure.
Perhaps your business began as a sole proprietorship but now you have several locations and numerous employees. Perhaps it would be beneficial for your business to include new owners or investors. A new business form, such as a limited liability company or corporation, may help the business address current difficulties and prepare the company for the future. A new form can help avoid problems by limiting the liability of business owners, streamlining the managerial process, and obtaining company tax benefits.
The Burton Law Firm is here to help with this process. Whether you are starting a new business, or changing the structure of an established business, we know how difficult it may seem to get started. We also know the exact path to take to reach the end result that you require. We have done this before. Our attorneys are truly accomplished at helping our clients choose and implement the correct entity for the business being formed or restructured. We know the law and how to apply it to your individual issues. Let us help you evaluate your options and decide on the business structure that best fits your needs. Let us help you choose your entity. Michael Iwahiro is our attorney for choice of entity. Please feel free to contact him with any questions or concerns about your business structure.