Starting a new business requires taking numerous steps prior to opening your doors. One potentially critical decision you will need to make is choosing an entity structure. This is just one of many considerations you will need to address when starting a new maritime or transportation business here in California or elsewhere.
The entity structure you choose should provide you with protection from personal liability for the debts and other obligations of the company. Under ordinary circumstances, you should not have to worry about whether your personal assets are at risk. If you have partners, they would also more than likely appreciate an entity structure that protects them from liability.
Another common concern when choosing an entity is how it will affect the taxes for which you and the company will be responsible. You should also consider your management style and the type of structure you want and need for your business. The other important consideration is how much work it will take to remain compliant with federal and California laws. For instance, a corporation has more “maintenance” requirements than a limited liability company.
More than likely, you have a number of questions and concerns when it comes to choosing an entity structure for your new business, but you may also have other questions considering the industry into which you are entering. Maritime and transportation businesses also have other issues that could affect your decision. For these and other reasons, you would probably greatly benefit from consulting with a California attorney with experience not only in the formation of businesses, but also in the transportation and maritime industries.
