Russo & Duckworth, LLP
949-752-7106

2801 West Coast Hwy., #270
Newport Beach, CA 92663

Directions

Business Law Newsletter

Selecting a Business Entity Type

If you are thinking of starting a business, you have many important decisions to make. One of the most important of these is choosing your business entity.

There are a number of different types of business entities, and each has its own set of advantages and disadvantages.

The most common types of business entities are:

  • Sole proprietorships
  • Partnerships
  • “C” corporations
  • “S” corporations
  • Limited liability companies (LLCs)

In choosing your type of business entity, you must ask yourself the following questions:

  • Do you want to maintain total control over your business, or do you want to have partners?
  • If you choose to have partners, will they all be treated the same?
  • Do you plan on providing your products or services to the local community, or are your products or services going to be marketed nationally or even internationally?
  • Do you want people to invest in your business and own a part of it?

You must also consider the legal implications associated with each business entity type.

  • Do you wish to have yourself protected from personal liability, or is your business generally one with little or no liability risk?
  • Are you planning on employing a large number of people?

The Internal Revenue Service (IRS) treats various business entities differently according to the applicable tax laws. Also, depending on the type of business entity you choose, you may be filing more than one tax return each year.

When starting a business, it is important that you understand the advantages and disadvantages of each type of business entity. You must carefully decide upon the business entity that best suits your objectives.

  • Articles of Incorporation
    In just about every state, corporations are required to file a description of the corporation, known as “articles of incorporation.” The articles of incorporation must be filed with the secretary of state, and are public... Read more.
  • Internet Business Method Patents
    “Business methods” generally include any methodologies that are involved with operating a business, such as online ordering processes. Prior to 1998, the U.S. Patent and Trademark Office (USPTO) rarely granted patents to... Read more.
  • Non-Disclosure Agreements
    Proprietary information, such as confidential business information, trade secrets, and intellectual property, may be worth millions of dollars. Public exposure or use by others may potentially dilute or destroy the value of such... Read more.
  • IRS Issues Proposed Regulations on Delaware Series LLC
    Limited Liability Companies (“LLCs”) are a form of business ownership which is a separate legal entity much like a corporation. An LLC is treated like a partnership for tax purposes and like a corporation for liability... Read more.
Business Law News Links
Share This Page:

The attorneys at Russo & Duckworth represent clients throughout the United States, but in particular in California and the Orange County cities of Aliso Viejo, Anaheim, Brea, Buena Park, Costa Mesa, Cypress, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, La Palma, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, Los Alamitos, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster, and Yorba Linda.

Russo & Duckworth, LLP Directions

2801 West Coast Hwy., #270
Newport Beach, CA 92663

Designed and Powered by NextClient

© 2008 - 2022 Russo & Duckworth LLP. All rights reserved.
Theme WebExpress™ attorney website design by NextClient.com.