FAQs

Can I operate as a DBA instead of operating through a corporation/LLC to save the $800.00 per year that I’m paying to the California Franchise Tax Board (FTB)?

Yes, of course. You lose the advantages of operating under the auspices of an entity, but that increased risk may be minimal. See this FAQ for a fuller discussion of pros and cons.

April 8th, 2020|0 Comments
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Is it ok for me to use the same entity for both businesses? It feels more efficient to put my new business into the same corporation as my other business. The businesses are similar to each other, and I can’t afford the overhead of a new entity.

Though I appreciate your need to be thrifty when it comes to starting a new business, this sort of money-saving approach is inadvisable. Occasionally a company will have a “division” or some other kind of structure that makes sense by way of keeping all things under one umbrella. For example, a hardware store may open [...]

October 30th, 2020|0 Comments
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Do shares in my corporation need to have a par value?

You need to declare a par value only when the state in which your corporation has been filed requires it. Delaware requires it.

August 10th, 2015|0 Comments
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What’s a limited partnership (LP)? When should I use one?

Limited partnerships (LP) have been the go-to entity for certain kinds of industries for years. The most prevalent use has been in real estate, where the ownership is usually made up of one person who manages the operations and the cash flow, and the rest of the partners are silent partners, or “limited partners”. Why [...]

August 6th, 2020|0 Comments
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What’s a general partnership? When should I use one?

A general partnership (GP) can come in very handy when you want to be in a joint venture or some other enterprise, and liability is either not an issue, or each “partner” has their own entity for liability protection. In fact, people who start “doing something” together can find themselves in a general partnership without [...]

August 6th, 2020|0 Comments
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Can a general partnership be taxed as an S Corporation?

In short . . . yes. Who knew?!

August 6th, 2020|0 Comments
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