Business Formation

Business formation is an important element to being a successful business. It can mean the difference between paying employment taxes on everything you make and being able to take part of your business’s income as non-employment taxable dividends. Without the correct business structure and operations, you may fail to have limited liability and be personally liable for any damages caused by your business, you, or your workers.

ARDASS Corporation provides business formation services to home-based businesses, online businesses based in California, and small retail and service stores. The following are just some of the specific services we offers:

  • Information and advice on starting a corporation, s-corporation, or a limited liability company (LLC), Partnership, DBA and Sole Proprietorship
  • Drafting contract agreements with employees and independent contractors
  • Information and advice on protecting assets and limiting your company’s liability
  • Information and advice on setting up a professional team and what services your company will need
  • Information and advice on keeping company minutes, documents, records, and other necessities for legal purposes
  • Drafting and finalizing of company documents (articles of incorporation, articles of organization, by-laws, operating agreements, etc.)
  • Filing of required documents for California, any state in USA and IRS
  • Information on where to form your company
  • Information and advice on hiring employees and independent contractors

 

Types of Business Entities

Corporations

A corporation is a business that is owned by shareholders who share in profits and losses the business’ operations.  A corporation is a legal entity with limited liability to its owners, and can live continually through ownership transfer by sale or gift.

Limited Liability Company

A Limited Liability Company, or LLC, is a business structure that has the limited liability of a corporation combined with the pass-though taxation of a partnership or sole proprietorship.

S Corporation

An S Corporation provides for the same limited liability of a corporate shareholder as a regular corporation, but allows for the paying of income taxes as if it were a partnership or sole proprietor.

Partnership

A Partnership is a business owned by two or more people.  Partnerships do not have to file papers, the arrangement begins when the business is started with another person.  Many partners will have a written partnership agreement.

DBA

Doing Business As (DBA) is a registration that allows a business to operate under a name other than its legal name.  A corporation, LLC, or personal name of the business owner of a sole proprietorship or partnership must file a DBA to do business under another name.

Sole Proprietorship

A Sole Proprietorship is the most common structure, and the simplest, used to start a business.  It is run by one owner that is entitled to all profits and responsible for all business debts, losses and liabilities.

Click here to read more about the pros and cons of different business entity types.

NEED ADVICE ON FORMING A BUSINESS?