If one decided to start a business in California, they have a lot of decisions to make that will affect one's company for years to come. One of the primary decisions to make will be what legal structure to use. Generally, corporations are more formal than other types of business structures, including sole-proprietorships, LLCs and partnerships. If one decides to start a corporation, they should know that they have two main options: a C-Corporation or S-Corporation. The two types of corporations vary in many ways, especially when it comes to taxes.
One of the best ways for California businesses to continue growing and experience long-term success is to acquire other companies along the way. In business and commercial law, any business acquisitions a company makes can determine whether the company will continue to be successful over time. Acquisition moves can also be highly beneficial for the company being acquired. Netflix recently made a $300 million offer to acquire a California billboard company.
Many Californians would like to go into business for themselves by creating an entity or purchasing a business that is already established. One of the key decisions that a prospective business owner or current business owner must make is what entity formation to use. One option is an S Corporation. Understanding how an S Corporation works and its tax requirements is key before deciding on this entity form.