Bay Area Business Lawyers | Primum Law

Choosing the Right Entity for Your Startup

One of the most important parts of starting a business is choosing the right business entity. Some of the issues that your choice can affect are your ability to raise capital, your personal liability for business debts, and the governance of your organization. As a result, it’s absolutely critical that you consult with an attorney when deciding what entity is right for your business. Some basic information regarding a few of the most popular choices in California can be found below. For more information, call Primum law today to schedule a free consultation with a San Francisco business attorney, call our office today.

Sole Proprietorship

Sole proprietorships are the simplest type of business to form – in fact, if you have already started selling your goods or services without taking any other steps, there’s a very strong chance that you’re operating as a sole proprietor without even knowing it. Sole proprietorships have no distinction between the business and the owner, and the owner is personally responsible for business debts.


Partnerships is a type of business entity that involves two or more people engaging in business for profit. Partners are jointly and severally liable for partnerships debts, and partnerships can be formed without taking any formal steps to form one. You can, however, register a partnership with the state of California by filing a Statement of Partnership Authority with the California Secretary of State’s Office.


Corporations are business entities that exist separately from their owners, and they can sell shares of stock to raise capital. Corporations shield their owners from personal liability for business debts. To form a corporation in California, you must file Articles of Incorporation with the California Secretary of State and comply with certain ongoing requirements.

Limited Liability Companies

Limited liability companies (LCCs) combine the flexibility of a partnership with the liability protections of a corporation. As a result, they are a very popular choice for many entrepreneurs. They can be member-managed or manager-managed. An LLC must be registered with the California Secretary of State and must have an operating agreement.

Call Primum Law Today to Schedule a Free Case Evaluation with a San Francisco Business Attorney

If you are in the process of starting a business or have already started your business but need to make things official, it’s critical that you choose the right business entity for your needs. To schedule a free consultation with a business attorney in San Francisco, call Primum Law today at 415.293.8042 or contact us online.

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