When you are beginning a business, many different decisions must be made. Perhaps the first of which is what business structure you would like to pursue. Would you like to be a sole proprietorship or a partnership?
No matter where you go in the United States, in order to start up your new business, you will need to determine what kind of business you want. They range anywhere between sole proprietorship or general partnership all the way up to C Corporations.
Being your own boss is a wonderful opportunity. However, with great rewards come great responsibility. If you are a contractor setting off on your own, you know that the field is loaded with reputable competition. Yet, with the right training, expertise, and application, success is within arms reach.
The ideal that every U.S. citizen should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative is the American dream. For many, this includes owning their own business. Many choose to start from scratch and others to invest in a franchise.
California law is known for its protection of franchisee rights; however, new protections are slated to go into effect in January. These amendments to California’s franchise law curb the power that franchisors have over franchisees. The new provisions apply to franchise agreements entered into or renewed on or after January 1, 2016, and to franchises of indefinite duration that can be terminated without cause.
On October 11, 2015, Governor Jerry Brown signed into law Assembly Bill 525 which amends the California Franchise Relations Act. The amendments significantly change what is required for the termination or transfer of a franchise agreement and it creates new remedies for violations of the statute.
An important consideration when starting or registering a business in California is the state franchise tax. It may influence whether or not you decide to register a business entity, and the type of entity to choose. In California, LLCs, corporations, and limited partnerships must pay the annual franchise tax of a minimum of $800.
When you are starting a business, one of the most important things to think about is how to organize the business. Depending on issues such as liability protection, tax laws, organization structure, and your investment needs, different business entities may be appropriate, and you can select an entity that is best suited to your needs.
As of January 1, 2014, California’s Revised Uniform Limited Liability Company Act (RULLCA): Cal. Corp. Code § 17701.01, et. seq., replaces Beverly-Killea (Cal. Corp. Code §17001, et. seq.. The new LLC law (RULLCA), provides for changes in many important areas of LLC law, a few examples of these changes follows:
Forming a non-profit organization is similar to starting any other business entity. It requires forethought, research, organization and a clear business plan. The difference is that all proceeds are used for charitable purposes and the charity will have tax-exempt status with the IRS.