When starting a business in California, it’s important to register appropriately. We can help you go about determining the appropriate classification for your business, and then assist with the business registration process. Be advised - it can get a little complicated.

The Common Types of Businesses Requiring Registration

There are several ways you can register your business, including:

Limited Liability Company (LLC)

For smaller organizations, this is a typical choice of business registration. It provides limited liability for you as an owner. With LLC registration you can take advantage of pass-through taxation – your company’s income taxes are not reflected at the business level, but rather on your personal tax returns.

C Corporation

C Corporations comprise the structure of what most of us think of as a corporation. They offer the broadest range of options for the owners when it comes to all things tax related. As well, registered in this fashion you can raise capital through the issuing of publicly traded stock. C corporations offer the greatest distance and separation from you as the owner, and the company itself – a significant benefit in the event of financial difficulty down the road.

S Corporation

Similar in structure and requirement to registering a C Corporation, S corporations have some notable differences. Namely, the pass-through taxation provision, mentioned earlier, also applies to S corporations. You thereby get to avoid paying corporate taxes – your business taxes are included in your personal tax return, and the personal tax rate. You have to apply for this status to the IRS, once you’ve completed the incorporation process.

 

Nonprofit Corporation

If your business’s goal is primarily to be a service to the public, you can take advantage of some of the benefits of registering as a nonprofit corporation. You are also provided limited liability protection, like the other business types we’ve mentioned.

We would be more than happy to sit down with you, to discuss the appropriate course of action for your California business registration. We bring along all of our knowledge and expertise regarding the Tax Code and all the provisions regarding corporations it contains.

Contact us with your Business Registration questions — we’d be happy to help.