The first step in establishing your business is to pick the correct business entity for you. Depending on your type of business and industry, our brokers personalize better protection and tax-saving opportunities — plus, look forward to legally registering your business name! Check out the three most popular business entities below. As a corporate agent of service in California and licensed tax professionals, our staff will ensure a solid foundation for your business.
Businesses with only one owner, or sole-proprietors, can register the name of their business in the county they'll be conducting business in. This name selection is published in a local newspaper and, once approved, filed in the hall of records in your county.
Sole owners, partners, or multiple business owners benefit from the protection of a limited liability company. A sole business owner — also known as a single-member LLC — benefits from the protection and simplicity of taxes with an LLC. This structure creates a separation between personal and business matters.
This is your recommended option if you're a business owner with assets and personal property (real estate, savings accounts, other items of value). As a single-member LLC, you enjoy "pass-through taxation" with the IRS. LLCs are also available for partnerships or multiple owners.
Businesses with high revenue or in high-risk industries are recommended to choose this structure. It benefits the business by creating clear separation between an individual's personal property and the corporation's assets.
There are two types of corporate tax elections: C-Corp or S-Corp. S-Corp creates a pass-through entity, so businesses with an S-Corp avoid double taxation on corporate income. C-Corps are double taxed — once at the corporate level, and again on the business owner's profits on their individual tax return.
Learn about business tax preparation →Doing Business As — California Only
Limited Liability Company — California Only
Incorporated — California Only
You can register a new corporation or LLC in the last 15 days of the year and not pay the $800 franchise minimum tax, as long as you didn't conduct business in those last 15 days. This is a great way to get a head start on the new year — you can set up new business bank accounts and other systems needed to manage your business.
Yes — however, to better protect yourself from identity fraud, it's highly recommended to get a Tax Identification Number (TIN) for yourself as a sole owner. This same number can be used for any business you start up as a sole-proprietor.
If you have a corporation or LLC registered with the California Secretary of State, you're required to pay a minimum $800 franchise fee. This is due in the first quarter of your accounting tax period — you must pay this fee even if you declared a loss on your tax return.
Income taxes are determined by a number of different factors. Tax planning will assist small business owners by estimating quarterly taxes, setting up budgets, and identifying business expenses that can be deducted. Call us for more information.
We cater to diverse business industries: construction, contractors, hospitality, and retail. From general liability and property insurance to workers’ compensation and cyber liability coverage, we have a range of options to protect your business from unforeseen risks.
Simple steps to protect your business:
Call us today for a complimentary consultation and quote.
