The Choice of Entity Decision

If you’re reading this, you fit into one of two categories:

1. You are thinking about starting a business, and aren’t sure which form of entity is best for you; or
2. You’re already in business, and either:
   • Have concerns about whether your existing entity is still the proper one, or
   • Whether the entity was properly set up and maintained. 

The proper choice of business entity is a critical decision, and you can’t make an intelligent choice without solid legal advice.  Make a mistake here, and you’ll likely pay for it later.

Here’s a classic example of why legal advice is critical in choosing an entity.  Before becoming a client of our office, a sole-proprietorship plumber wanted to provide liability protection for his business.  So, he went on
www.(name-withheld).com to form an LLC.  After getting his Articles of Organization back from the Secretary of State, he later found out that he had to transfer his State Contractor’s License from his personal name to his LLC.  Only one problem…the California State Contractor License Board did not recognize an LLC as a valid entity for licensure purposes!  They only allowed sole-proprietorships, partnerships, and corporations to hold a contractor’s license.  The result: the plumber had already paid over $1200 to set up his LLC (including the first year’s annual franchise tax), and had to cancel it (more fees), before having us properly form his corporation.  Do you think
www.(name-withheld).com offered to refund his wasted fees? 

Our firm consults with you (and your partners, if any) to properly determine which form of business entity is right for you and your business.   We ask you the probing questions based on years of experience that most non-lawyers simply aren’t familiar with.  There are also other forms of business entities, such as Limited Partnerships, Professional Corporations, and Limited Liability Partnerships, that may be best for your business.

Please call us for a free, no-obligation consultation to determine which choice of business entity is right for you.