What Is a Corporation? A corporation is a separate legal entity from its shareholders, recognized under the California Corporations Code. It can enter into contracts, sue or be sued, and continue to operate even when ownership or management changes. Corporations require more formalities than LLCs or sole proprietorships but offer robust liability protection and are…
What is an Operating Agreement? Your operating agreement is your LLC’s rulebook. It clarifies ownership, management, money matters, and what happens if someone leaves. Under California’s Revised Uniform Limited Liability Company Act (RULLCA), an operating agreement can be written, oral, implied, or a combination, but a signed written agreement is the practical standard. It helps…
What Is an LLC? A limited liability company (LLC) is a versatile legal business structure that provides its owners, referred to as members, with protection from personal liability for business debts and obligations. In California, an LLC is especially attractive because it offers flexibility in both taxation and management, while requiring fewer formalities than a…
Thinking about starting a business in California? Choosing the proper legal structure for your business is one of the most important decisions you will make as a new business owner or entrepreneur. Your entity type determines how your business sis taxed, how profits are distributed, how easy it will be to raise money, and, perhaps…