CORPORATE AND LLC FORMATIONS

Whether you are a first time entrepreneur or a seasoned business owner, deciding whether to incorporate and what type of entity to form is a critical step which should require a consultation with an attorney. The first question should be whether or not you need to incorporate; or alternatively, should you form a different type of entity other than a corporation? There are many advantages and benefits for a sole business owner to form an entity. So which type of entity is best for your business?

There are several different types of corporate entities, each having its own unique benefits and requirements. Unlike sole proprietorships, corporations must be filed with the Secretary of the State. Below are the most typical types of corporations.

C-Corporation (General for Profit)
S-Corporation
Limited Liability Company ("LLC")
Limited Liability Partnership ("LLP")
Professional Corporation ("PC")

We have formed hundreds of LLCs and corporations for clothing design companies, entertainment production companies, real estate LLC's, LLC protection for actors, technology companies, restaurants, and for many additional industries and purposes.

Knowing which entity is right for you will depend on your business and desired tax status. We provide consultations regarding the best entity given your needs. For differences between LLC's and S-corporation, see the following article.

Why Should I Incorporate and What Are the Benefits?

Tax Advantages:

As taxpayers, we are all aware of how expensive our yearly tax requirements can be. One of the greatest advantages the US government has provided is the opportunity for tax deductions related to the corporation. For example, unlike partnerships or sole proprietorships, health, life, and disability insurance are deductible by the corporation. If properly structured, other expenses include automobile insurance, education benefits, travel and entertainment expenses may be deducted as well. These expenses are subject to strict limitations for sole proprietors (if deductible at all). You may also eliminate self-employment taxes and lower social security tax and Medicare tax payments are well.

Protection from Personal Liability
Another significant reason for incorporating is to maximize protection from personal liability. The shareholders of a corporation are generally not liable for the obligations of the corporation. For example, creditors of a corporation may seek payment from the assets of a corporation, but not the assets of the shareholders. Therefore, business owners may engage in business without risking their homes or other personal property.

Why Use Us

We are experienced in this area of the law and can perform all of the following business formation services:

Formation of S and C Corporations, Limited Liability Company (LLCs), Limited Liability Partnership (LLPs),
Preparation and customization of Operating Agreements, Articles of Incorporation, Corporate minutes, Corporate by-laws, Buy-Sell Agreement
Contract review and negotiation
Business litigation including breach of contract, dispute resolution, and negotiation
Non-disclousre (NDA), and confidentiality agreements
Internet law
Licensing Agreements

Business Litigation

Litigation is often used as a defensive measure to protect corporate assets and intellectual property. But sometimes we have seen it used against businesses as a means to apply greater pressure against their competitors. Whether you are a Plaintiff seeking to achieve expedited injunctive relief or you are Defendant trying to protect your rights, we can achieve a cost-effective solution to prevent or minimize additional harm. We have represented companies and individuals in both state and federal court for claims such as:

Breach of contract
Misappropriation of trade secrets
Unfair business practices
Infringement of intellectual property
Intentional interference with contractual relations
As well as other business torts

Because our firm is dedicated to serving business clients, we are well-positioned to work in close partnership with our clients to tailor a litigation strategy that is appropriate given the facts of each suit and that achieves the business goals that our clients seek. Although we are a small firm, we have successfully defended many of our clients against some of the largest firms in the nation, and if, necessary we may associate with larger firms to accomodate your lawsuit.

9025 Wilshire Boulevard, Suite 301, Beverly Hills, CA 90211 Phone:310.288.4500 | Fax: 310.246.9980 | Website: www.patentlawip.com