When you actively involve in your business dealing, you should seriously think about how to protect personal assets from
your business activities. Any misconduct or misfortune in your business could bring up frivolous law suit against your
business assets and even your personal properties which could include your house, car, boat and stock holding, etc.
To avoid unlimited liability under sole-proprietary ship or partner-ship, you need to think about if you need to incorporate
your business.
What incorporation does is to provide you with limited liability protection from your creditors under appropriate state
corporation law. So far, under California corporate law, you can get limited protection by incorporating your business to
form C-Corp, Sub-Chapter S Corp, Limited Liability Company (LLC) and Limited Partnership. With so many types of business
type to choose from, which type will be the best type for your business. A professional and experienced legal counsel and/or
accountant are a necessity to incorporate a business correctly from the beginning. Only an experienced firm can ensure that
your business structure is tailored to your needs of business formation.
Zhai & Wang, LLP is an experienced accounting firm to incorporate your business and set you on the road to success.
We have the expertise to help anyone start and incorporate a business. With limited liability being provided by each above
business type, it is critical to understand the taxation impact under each business type. With the full engagement, we will
provide comprehensive tax-related consultation for you to project your tax situation under each business type. Thus you can
start your business on the correct course.
Zhai and Wang, LLP is the only listed private service company in San Jose area with the
California Secretary of State
(under registered name of Zhai & Co., CPA) to provide prompt and hassle free incorporation service. If you need immediate
incorporation service, please contact us on how to get it start.
Here is a summary for high-level comparison of different business you can consider:
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Sole Proprietorship |
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Partnership |
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Limited Liability Company |
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Corporation |
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Sub-chap. S. Corp |
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Difficulty and cost to form |
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Low |
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Low to Moderate |
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High |
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High |
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High |
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Difficulty and cost to maintain |
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Low |
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Low |
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High |
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High |
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High |
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Risk of owner liability |
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High |
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High |
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Low |
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Low |
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Low |
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Difficulty of tax preparation |
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Low |
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Moderate |
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High |
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High |
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High |
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Flexibility of ownership; bringing in new owners |
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Low |
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Moderate |
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Low |
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High |
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Low |
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Cost of terminating business |
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Low |
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High |
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High |
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High |
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High |
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