What Type of Business Can I Open in California?

Contact Us

    You’ve done the planning and are finally ready to open your business in California! But, have you considered which business structure you’ll need to achieve your goals? Each type of business structure has its own benefits and drawbacks so you should think carefully before filing the paperwork.

    Sole Proprietorships

    If you feel confident your California business will be a one-person show owned and operated only by you, then a sole proprietorship is a great option to get you in business quickly. This type of business structure makes no distinction between the business owner (you) and the business itself. You are entitled to all the profits and don’t have to run any decisions by a board. However, because you legally are your business, you can be liable for company debts or losses.


    Partnerships are similar to sole proprietorships. Rather than belonging only to one person, the company belongs to two or more people. These people all share in the profits and growth of the business. Unfortunately, like sole proprietorships, this structure also holds the partners liable for debts and losses. No matter how close and friendly you are with your business partners, remember that this is still a business relationship. It often helps partners to sign an agreement before launching the business.

    Limited Liability Companies (LLCs)

    LLCs are a popular choice for California business owners who want to maintain a relatively direct hand in the business while also enjoying some protection from debts and losses. Filing as an LLC ensures your company is a semi-separate entity from you as an individual. As with partnerships, if you own the business with multiple people, you would all receive a share of the revenue.


    Corporations provide the most protection from liability and losses. Creating a corporation means your business is entirely unique and separate from the owners and directors. There is special oversight in how you run the corporation and many more legal documents to file. However, in exchange, you enjoy maximum protection from debts and losses so you won’t lose your personal assets should the business fail.

    Helping California Business Owners Get Started in the Inland Empire

    Opening a business in California is a big deal. Filing the paperwork correctly can turn a stressful start into a simple one. Make sure your legal documents are properly completed and filed by enlisting the help of a ProSe Legal legal document assistant. Our team can help you with all your business formation documents so your transition into a business owner is as smooth as possible.

    If you are ready to start on your business formation paperwork with help from a ProSe Legal LDA, today or call (909) 497-1349 to schedule your appointment!