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How to Structure Your Business in California

By:  Mahyar Ghassemian

Choosing the right structure for your business in California is one of the most important decisions you’ll make as an entrepreneur. It has long-term legal and tax implications, and the best approach involves consulting both legal and tax professionals.

Why You Need Professional Guidance

The Role of an Attorney

An attorney can help determine whether your business should be incorporated by examining your personal liability exposure. Key questions include:

  • Do you have personal assets that need protection from creditors?
  • Are you entering a high-risk industry?
  • Would forming an entity protect you from legal risks?

The Role of a Tax Professional

A qualified tax advisor will assess how forming a corporation, LLC, or other entity could affect your individual tax situation. What may be a good legal structure may not always be the most tax-efficient.

Filing Is Just the First Step

Once you decide on a business entity and file with the California Secretary of State, your work is far from over. Proper legal documentation is essential to ensure your business entity offers real protection.

Common Mistake: Relying Solely on Online Formation Services

More and more entrepreneurs are turning to the internet to form LLCs or corporations. While these services may handle the initial filing, they often fail to provide:

  • Customized Bylaws or Operating Agreements
  • Proper initial minutes
  • State-required filings
  • Ownership and management documentation

When disputes arise or lawsuits are filed, the absence of these critical documents can lead to disastrous outcomes—often costing tens of thousands of dollars to resolve.

Essential Documents to Protect Your Business

To maintain liability protection and legal integrity, your business must have:

1. Internal Governance Documents

  • Bylaws (for corporations) or Operating Agreements (for LLCs), tailored to your business
  • Initial minutes and resolutions to formally record decisions
  • Annual filings and maintenance documents

2. Agreements Between Partners

If your business has multiple owners, it’s crucial to anticipate situations such as:

  • A partner dying or becoming incapacitated
  • A partner withdrawing or selling their interest
  • Dispute resolution mechanisms

3. Business Contracts

Depending on your industry, you may also need customized contracts to reduce liability and clarify relationships with clients, vendors, or employees.

How Ghassemian Law Group Can Help

At Ghassemian Law Group, we specialize in structuring businesses properly from the start. Our team ensures you have the right documents in place and remain compliant with evolving California laws.

Let us help protect your business from costly mistakes.
???? Call us at (949) 436-2785 or
???? Visit www.glgattorneys.com to learn more.

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This article is informational only and meant to provide guidance. It is not meant to be legal advice and it does not create an attorney-client relationship. For what to do in your specific situation, please consult with a qualified Construction Law attorney.

Testimonials

Ghassemian Law provided thoroughly constructed and effective legal strategies for successful outcomes in the complex world of construction law for our small company. Core competence, due diligence, and a commitment to client needs are strengths that inspire confidence and keep producing results when it counts most.

Peter Greenberger

Pacwest Construction and Development Inc

I can’t say enough positive things about the incredible team at this attorney’s office. From the moment I spoke with them on the phone, I knew I was in capable hands. Even though I am a North Carolina business I had a very complex case in California. The law firm and attorneys were the best of the many, many law firms I interviewed. I can not say enough how easy they are to work with from start to finish.
Their expertise is unmatched. They navigated the complexities of my case with professionalism and confidence, leaving no stone unturned. Their depth of knowledge and strategic thinking were evident every step of the way.
What truly sets them apart is their genuine care for their clients. They listened to my concerns, answered my questions promptly, and ensured I felt supported throughout the entire process. It’s clear they care about their clients and they’re in it to make a real difference in people’s lives.
The professionalism and attention to detail displayed by this office are outstanding. They kept me informed, were always on time, and made sure I understood every aspect of my case. They turned a potentially stressful situation into a manageable one.
I’m incredibly grateful for the exceptional service and favorable outcome they delivered. If you’re seeking legal representation that combines expertise, compassion, and dedication, look no further. This attorney’s office is a true gem and worthy of every one of these five stars!

Christopher Grouse

Grouse Industries, Inc.

Ms. Mahyar Ghassemian provided professional, expert counsel with kindness. Sticky matters were explained with clarity, and she developed a path toward resolution. I was completely satisfied with the Ghassemian firm’s handling of my case.

Linda Mograbi

Private Individual

Small Firm Value – Large Firm Expertise

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