How Forming an LLC in California Can Benefit Your Business

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<h1>How Forming an LLC in California Can Benefit Your Business</h1><strong> Author: <a href='http://www.articleseen.com/profile_Mr William Hauselberg.aspx'>Mr William Hauselberg</a></strong><br /><p>Starting a business is a serious and often overwhelming experience. Perhaps you started your business as a sole proprietorship or perhaps a partnership, but you aren't getting the benefits that you see your friends and competitors getting; those who took the time to file an LLC. If you haven't formed an LLC you could be paying too much in taxes and leaving yourself open to personal financial ruin in the event you ever get sued in a court of law. Many people choose not to form limited liability company because they think the paperwork and fees are too complicated. While they do require more than other forms of business, taking the time and spending the money up front can save you thousands or even millions in the long run. Why Go LLC When you are a sole proprietor in California, your personal finances are fair game in a lawsuit. You may think, I won't do anything wrong, so that doesn't matter. If you get in an accident while on business, you could be sued. If a supplier sends you a faulty product, you could be sued. Or if you just have the unfortunate luck of coming across a litigious client, you could be sued. LLCs offer the liability protection of a corporation – no one can come after you personally, they can only take from the business. When you file for incorporation, your business becomes its own entity is means you won't have to worry about losing your house or your personal retirement savings in a business lawsuit. You are also open to paying more taxes. Sole Proprietors in California are often double-taxed on the money they receive. First, they are taxed as a business, and then they are taxed as individuals. LLCs have many tax benefits that could save you thousands each year. If you are currently operating as sole proprietor or partnership with few employees, California LLC registration is probably the best way to go for your business. It offers you the legal liability protection of a corporation, the tax benefits of an entity all without requiring you to change your business model.</p><strong>About the Author:</strong><br />The author has an immense knowledge on <a rel="nofollow" href="http://www.sundocumentfilings.com/foreignllc.htm" target="_blank">California LLC registration</a>. Know more about <a rel="nofollow" href="http://www.sundocumentfilings.com/formacaliforniacorporation.htm" target="_blank">file for incorporation</a> related info in his website.<p> Article Source: <a href='http://www.articleseen.com/Article_How-Forming-an-LLC-in-California-Can-Benefit-Your-Business_79574.aspx'> http://www.articleseen.com/Article_How Forming an LLC in California Can Benefit Your Business_79574.aspx</a></p>

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Keywords : file for incorporation, California LLC registration,

Category : Business : Business