Business Formation

Choosing the right business structure is one of the most important decisions you’ll make at the start of your business. The choice affects your taxes, liability, ability to raise capital, and even day-to-day management.

Sole Proprietorship – Simple to form but offers no liability protection.

Partnership – Allows two or more people to share ownership, but partners are generally liable for business debts unless a limited partnership is used.

Limited Liability Company (LLC) – Offers liability protection for owners (members) and flexible tax options.

Corporation – Provides strong liability protection and access to investors, but requires more formal governance and recordkeeping.

Professional Entity – For licensed professionals, such as lawyers or medical practitioners, who must operate under state-specific entity rules.

We help clients evaluate factors such as personal liability tolerance, tax preferences, funding needs, and management style before recommending a structure.

Nevada is often considered a business-friendly state due to its lack of state corporate income tax, strong privacy protections, and streamlined filing process. California, while offering a large market, imposes a minimum franchise tax and requires more detailed annual reporting.

If you operate in both states, you may need to register as a foreign entity in one of them, depending on where your business activities take place. This can create additional compliance obligations, such as paying fees and filing reports in both jurisdictions.

At Handelin Law, because we’re licensed in both Nevada and California, we can guide you through these multi-state considerations and help you decide where and how to form for maximum benefit.

While online filing services can prepare and submit formation documents, they don’t provide tailored legal advice or ensure that your agreements protect your interests. Many business disputes arise from poorly drafted operating agreements, unclear ownership percentages, or missing compliance requirements.

An attorney ensures your entity is formed correctly, that your bylaws or operating agreement address potential disputes, and that you understand your ongoing obligations to maintain good standing. This proactive step can save significant time and money later by preventing costly legal conflicts.

The timeline depends on the chosen structure, the state of formation, and the completeness of your initial documents. In Nevada, forming an LLC or corporation can often be completed in a matter of days, while California’s processing times may be longer due to state filing backlogs.

Additional time may be needed to secure required business licenses, permits, or regulatory approvals. We help expedite the process by ensuring your documents are complete, compliant, and filed correctly the first time.