Congratulations! You just asked the best question (which is why it’s also at the top of the FAQs). You know (or at least should know) your business best, and so that also means you know what liabilities you may face. Make a list. Call up your insurance broker (you have one, right?) and talk through […]
An LLC, or limited liability company, is a type of entity that protects its owners (members) and managers from liability, unless they personally do bad things. Like a corporation, an LLC happens when its Articles of Organization are filed with the state authority. In California, this is generally an online form. Keep in mind, there […]
Short answer: yes, but now it depends on even more than it used to. And even though I advise in the tax area, determining what entity is best for your enterprise now depends on a wide variety of factors that are specific to your entire economic situation and not just the business.
You could. But you’d want a good reason to. For example, if you live there and are planning on running your business from there, makes sense. If you’re running your business in California, then incorporating in Nevada may be due to more nefarious reasons. Some attorneys like to organize their clients in Nevada because reaching […]
You’ve read a lot about that, I’m sure. There can be reasons to form there. Here are two that come up a lot: First, your business is going to have big deal investors who like being in Delaware. Second, Delaware law is corporate-centric, efficient, and can provide better protections for the corporation’s officers and directors. […]
If you’re not thinking about Delaware, then maybe. Sometimes you’re going to have to. If, for example, you’re forming an LLC for investment real estate, with a few exceptions, that state will require you to form your LLC in the state where the property is located. There may be other reasons to be in another […]
I wish the answer to this were more existential, and thus more interesting. Alas, it’s as simple as this: a corporation becomes a corporation when you duly file Articles of Incorporation, also know as “charter documents”, with the state official authorized to recognize and process such filings. In California, that’s the Secretary of State. In […]