University of La Verne SBDC Small Biz Blog

The Forms of Ownership presentation is a discussion of the most common forms of business ownership that are available to business owners. Information is presented about Sole Proprietorships, Partnerships, Corporations, and Limited Liability Companies. This information, along with specific filing information for each form of ownership, allows the business owner to determine which form of business ownership best fits their business needs. About the presenter: Lucius C. Davis III is the Small Business Liaison in the Taxpayers’ Rights Advocate’s Office. He assists with the development of small business education and outreach programs in order to help business owners better understand their income tax requirements and responsibilities. He also provides information about the Franchise Tax Board’s (FTB) programs and services that are available to them. Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendati...

by Joshua Botello So, you want to start a business, but don’t know if you need a sole proprietorship or LLC? C-corp? S-corp? Whoah. (hands up) Don’t worry I’ll break it down for you to determine the right one for your business. Here’s my disclaimer: I am not a lawyer or accountant. This by no means legal advice and is for education purposes only. All the resources for this video are listed in the description below. Ok? ok. SOLE PROPRIETOR First up is a sole proprietorship. This is the cheapest and easiest to form. With this structure, you are the business. If someone decides to sue you for a bad product or service, since you are the business, they could go after your house, car, and any other personal property. In the eyes of the law, there is no separation. You can easily become a sole proprietor by filing a Fictitious Name Statement also known as DBA for about $100 dollars in the county the business is located. Limited Liability Company (LLC) The next formation is a Limited Liabilit...

by Joshua Botello Insurance. One of the dullest topics to ever talk about with anyone, other than an insurance broker. This means that we should have this important conversation as soon as possible until it is too late and you are up to your waist in legal issues that could tank your business in one fell swoop and is essential for small businesses to operate. Let’s take a look at 6 of the most common types of insurance policies that any business may need.  Disclaimer: The information in this article, while authoritative, should not be considered legal advice. Consult your licensed financial advisor, legal counsel, and/or regulatory body to determine the best policies for your business.  COMMERCIAL LIABILITY First on our list is commercial liability insurance, otherwise known as general liability. It's one of the most common types of business insurance. Basically, this kind of insurance protects your business against bodily injury and property damage. It i...

by Joshua Botello If you have filed for your DBA, EIN and now you look to start selling, there is one crucial but often overlooked item business needs to get: a business bank account. A business bank account is a necessity because it separates your business expenses from personal expenses, allows check processing, and gives you access to financing. I’ll show you what to look for in a business account and what information you need to open one. Most of this research can be done online. So let’s start there and open up our bank account. Finding a Bank The first step to getting your business bank account is determining your bank. Most commercial banks that have personal accounts also provide business bank accounts. You should start with your bank where your personal account is and simply inquire about a business account. You need to consider that any bank and even credit union can have business accounts. You will need to check if this makes sense to go with a traditional bank or credit uni...