Privacy, Business and Law

Yes, under a fairly recent amendment to the California statutes, which authorize limited liability companies, one member LLCs are now allowed in this state. LLCs are governed by state statutes, which are not consistent or uniform from state to state. If you are in a different state and wish to form an LLC, you should [...]

The choice of legal entity is a difficult issue and must be addressed on a case-by-case basis, depending on the type of business to be conducted, the goals of the owners, and the financial arrangements. There are certain types of entities that are commonly used for some types of businesses, but there is no “right” [...]

In a general partnership, all partners have joint and several liability to third persons for the obligations of the partnership, no matter what their contribution or investment in the partnership was. With a limited partnership, the general partner(s) have this unlimited liability, but the limited partners’ liability is limited to the amount of their contribution [...]

The Franchise Tax Board requires that all corporations pay an annual tax, or fee, for the privilege of doing business in the State of California. If a corporation is incorporated in another state but is required to be legally qualified to transact business here, then it must pay a similar fee, even if it is [...]

A “regular” corporation is a corporation that is taxed under Subchapter C of the Internal Revenue Code. No election is made for this purpose; it is the default method of taxation for corporations. Under Subchapter C, there is a tax paid at the corporate level and at the shareholder level, assuming the shareholders receive dividends [...]

An LLC, or limited liability company, is a form of entity that is usually treated as a partnership for tax purposes but where all owners, called members, have their liability for obligations of the LLC limited to the amount of their investment in it. Its existence commences with the filing of Articles of Organization with [...]