Filing an LLC (Limited Liability Company) with the Secretary of State is an excellent idea. Not only will you be protected by limited liability for the company's debts and obligations, but a limited liability company is much less formal, and more flexible, than a typical corporation. LLCs also enjoy a pass-through tax structure, so the only tax you have to pay is on the income you earn from the business.
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Most business owners will form a corporation to help separate their personal assets from their business's liabilities. When correctly structured, a corporation will allow owners, directors, and officers to manage and run the business, without having to worry about losing their property and assets to pay the business's debts. Corporations are able raise capital by selling shares of the business, and as California has one of the strongest economies and is home to some of the fastest growing industries, there is no shortage of potential investors.
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Non-profit corporations are very similar to regular corporations, only instead of trying to maximize profit for their shareholders, non-profits use any money earned to help further their philanthropic purpose. Because non-profits are not founded to make money, they are typically exempt from paying most taxes.
Non-profit corporations are very similar to regular corporations, only instead of trying to maximize profit for their shareholders, non-profits use any money earned to help further their philanthropic purpose. Because non-profits are not founded to make money, they are typically exempt from paying most taxes.
File a Non-Profit Corporation in California Online*Price doesn't include state fees
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Corporations that are formed to provide professional services - services like medical treatment, legal representation, and financial planning - should form a professional corporation, pursuant to certain statutory rules, due to the regulatory nature of these sorts of industries.
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