Why Corporate Formalities Matter

  • April 2, 2026
  • Matthew Sharbatian

One of the most valuable reasons to form a corporation or limited liability company (LLC) in California is to protect your personal assets. Done correctly, your business becomes a distinct legal entity, insulating you from debts and liabilities incurred by the company. But if your business does not follow the rules, courts can disregard that…

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…