Palm Springs Business Attorneys Advise on Partnerships, LLCs and Other Business Entities
Reliable counselors assist California companies in formation, dispute resolution, dissolution and related matters
When you form a business, you have to select the appropriate type of entity to create, based on ownership, control of operations, method of capitalization, tax planning and various other considerations. Whether you’re an experienced businessperson or you’re taking your first stab at being your own boss, it’s important to get trustworthy advice from a knowledgeable business attorney. At Schlecht, Shevlin & Shoenberger, our Palm Springs business lawyers have a wealth of experience that enables us to advise you based on your particular circumstances and goals. We not only help you register your business entity but will guide you through the entire formation process, putting in place protections that will safeguard your interests for the life of your company.
Types of business entities available within California
Before you launch your business in California, you must register it with the Secretary of State. At that time, you have to declare what type of entity your business is. California law allows registrants to organize their businesses as a:
- Limited liability company (LLC)
- General partnership
- Limited partnership
- Limited liability partnership (LLP)
- Sole proprietorship
What’s right for one situation may not be appropriate for another. To be sure, consult an experienced business formation attorney at our firm.
Special considerations for California partnerships
Partnerships are flexible arrangements for business owners who have a similar a vision and want to share responsibilities. There are several types of partnership arrangements:
- General partnership — This is a partnership between equals, who are willing to accept joint liability for the business.
- Limited partnership — In this arrangement, there is one general partner and one or more relatively silent partners. Here, the general partner has the vision for the enterprise, exercises most control and accepts the lion’s share of liability. The limited partners may be investors or participants with particular necessary skills. They are only liable in proportion to their participation in the enterprise.
- Limited liability partnership — An LLP is an entity for professionals such as doctors, lawyers, architects, engineers and accountants who share a practice and maintain their own liability insurance.
In addition to registering your partnership, you need a detailed agreement that covers important matters such as:
- Proportion of ownership
- Delegation of responsibilities
- Ownership of intellectual property
- The right to sell a partner’s interest
- Arrangements to buy a separating partner’s interest
Buy-sell agreements are key, because when a relationship doesn’t work out, there has to be an exit strategy. But that strategy cannot burden the remaining partners with a potentially troublesome new partner.
Reliable guidance for limited liability companies
Limited liability companies are popular because they combine the ease of control and tax reporting you get in a sole proprietorship with the liability protection of a corporation. California LLCs can have one or more owners or managers. You must draft an operating agreement to govern how your business is run. It’s also important to draft specific terms of ownership and a buy-sell agreement covering rights and duties in the event that an owner wants to separate from the company. Our business law attorneys can assist in these areas and offer many other services for your new company.
Contact our Palm Springs law firm to schedule a business formation consultation
For reliable advice on entity selection and other issues related to business formation, trust Schlecht, Shevlin & Shoenberger in Palm Springs, California. We assist small business owners throughout the Coachella Valley and Riverside County area. Please call 760-320-7161 or contact us online to schedule a confidential consultation.