Should I Incorporate my California Business?


To decide whether or not to incorporate your business, you have to think about why you want to incorporate a business.

Some people want to incorporate their businesses because of the perceived liability protection. Incorporating your business, or forming a limited liability company can create a “corporate shield” which will protect you from legal responsibility and personal liability for business debts and obligations. If a business related problem results in a non-guaranteed debt, or judgment, your corporation or LLC will be at risk, but your personal assets will be protected. That is so long as you followed the corporate formalities and properly set-up and maintained your corporation or LLC. The truth is – over 90% of all California corporations and LLCs are not properly formed, or maintained, and consequently have lost their "corporate shield."

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Melissa Marsh | Attorney Advertising

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