When you have decided to start a business, knowing what type of entity to establish can be complicated, as there are quite a few options. If you would like to be able to rest assured that the liabilities of your business cannot impact your personal finances and property, then incorporation might be for you.
Think of a corporation like a shield, and once you establish it, it stands between you and the creditors of your corporation. This means that if the business fails, they cannot target you for the losses. Incorporating is a wise decision, and following is a bird’s eye view of how to do it. An experienced San Francisco business law attorney can best advise you on the options available.
The first step is selecting a name for your business, then checking the business registry to make sure someone else has not already taken it. Once you’ve found a name that is available, it is time to decide who will be the directors of the corporation, and who the owners are.
Investors will generally take a percentage in line with their investment, but you must draft agreements to support this. When you have a name and your directors and owners determined, then you’ll choose between an S-Corporation or a C-Corporation. C-Corps have two layers of taxation, meaning the revenue is taxed into the company, then again when people who are paid through the revenue have to pay income tax. S-corporations have one layer of taxation, but some limitations. An attorney can best advise you as to which type of corporation best fits with your business type and ownership structure.
Reach out to Primum Law Group to schedule a consultation now to discuss options on getting your corporation started.