Forming a new business entity in San Diego isn’t a simple form with the Secretary of State. It isn’t downloaded boilerplate corporate forms. The decision of which new entity – LLC, S Corporation, C Corporation or Professional Corporation (PC) – best suits your short and long term business objectives is more important than you may realize. Some business entities provide limitations as you wish to grow down the road requiring costly and time-consuming reformation. Do you expect to do business across state lines? Internationally? Are you a sole proprietor who will generate a substantial income? If your going to start a business it is important to get it off on the right track.
There are potential tax issues. Which entity allows you to keep the most amount of post-tax income based upon your business model? Our integrated business advice, legal services, tax services and accounting professionals provide the right answers in a timely and cost-effective way. We help you to understand the nuances of each entity and the benefits they offer based upon your unique circumstances. We help you to develop an operating agreement that facilitates your business objectives while protecting you from the challenges and unforeseen issues which will arise down the road. What happens to the business ownership if one of the primary shareholders or LLC members dies, becomes incapacitated, files for personal bankruptcy or gets a divorce? How will future investment be brought into the company to help it to expand and grow?
In some cases you may be forming a new entity that will fit into your existing corporate holdings. How will the new company be affiliated with your existing businesses? How will income be realized and what is the transfer pricing strategy you will use to move products, goods and services through the new entity to your other companies? What are the state, federal and international tax impacts upon these decisions?
Forming a new business entity in San Diego is an exciting time. We understand the nature of a startup and the limited resources you may have. There is nothing more important than selecting the right entity and getting your company started on the right foot. We invite you to contact us or call 866-631-3470 for a free consultation.