SOURCE: The California Company

September 26, 2007 13:20 ET

California Entrepreneurs Fly Solo and Exposed

The California Company Offers a Safety Net by Forming LLCs and Corporations

SACRAMENTO, CA--(Marketwire - September 26, 2007) - When Californians start a business, they stand to gain all the rewards from it. However, they also face exposure on many fronts -- all alone. The California Company (www.thecaliforniacorp.com) helps Californians reduce financial risk by simplifying the process of forming California limited liability companies (LLCs) and corporations.

There are a number of reasons why Californians should consider forming a California limited liability company (LLC) or corporation.

--  Safeguard personal assets against creditors and lawsuits. Without an
    LLC or corporation, owners' personal assets (houses, cars, bank accounts,
    etc.) are at risk of being seized any time the company is sued.
--  Dividends and profits are taxed at a lower rate; and are not subject
    to FICA.
--  Income-shifting may decrease taxes. Shifting between personal and
    corporate income can result in lower taxes.
--  Fewer restrictions. The State of California typically places less
    requirements on operating and capital loss deductions.
--  Health insurance and other fringe benefits. California LLCs and
    corporations typically gain the ability to deduct the cost of health
    insurance and/or other fringe benefits.
--  No limits on corporate losses. There are no limits on the amount of
    losses a corporation may carry forward to subsequent tax years.
--  Ease in raising capital. Capital from investors can be raised easily
    through the sale of membership interests or corporate stock.
--  Continuous existence. A California LLC or corporation is capable of
    continuing indefinitely. Existence is not affected by the death of
    member(s)/manager(s), shareholder(s), director(s) or officer(s).
--  Establish credit history. Regardless of your personal credit score,
    you can build a separate credit history for your California LLC or
    corporation simply by applying for and using company credit.
    

Organizing a business as an LLC or corporation in California protects the owners' personal assets and allows them to take advantage of tax benefits.

Traditionally, forming an LLC or corporation has meant hiring a lawyer or using a national formation provider that is unable to specialize in each state's unique requirements in the State of California. However, The California Company specializes in California-based entity formation and is more approachable and affordable than other alternatives. The California Company provides a wealth of formation-related information online at www.thecaliforniacorp.com and the ability for Californians to form legal entities on their own, with no legal fees.

For more information Californians can visit www.thecaliforniacorp.com or call The California Company at 1-877-530-CORP (2677), Monday-Friday, 6 a.m.-5 p.m. Pacific time. Live Chat is available on the Website Monday-Friday, 8 a.m.-3 p.m. Pacific time.

About The California Company

The California Company™ (www.thecaliforniacorp.com) focuses on doing one thing and one thing only: forming California limited liability companies (LLCs) and corporations efficiently. We assist California-based entrepreneurs, attorneys, and accountants in providing asset protection, and reducing tax liability by forming entities in the State of California that provide limited liability protection.

Contact Information

  • Contact:
    Troy Janisch
    Director of Marketing
    The California Company
    608-576-7533