Important Information for Starting Your Own Business by Asset Protection Attorney Matthew Mulhoffer

    MARINA DEL REY, CA, January 17, 2010 /24-7PressRelease/ -- Protecting your assets is your first concern when starting your own business. Highly regarded attorney Matthew Mullhofer shares his expertise in incorporating a business.

California Corporations

Incorporating a business in California offers a number of advantages that aid in the protection of both assets and privacy. A California Corporation will protect the individual from personal liability. A single individual can hold all offices including: Director, Shareholder, President, Secretary, and Treasurer. Incorporating in California can allow you to take advantage of tax deductible benefits such as health, accident, disability insurance, life insurance, and medical reimbursement plans. Corporations that have fewer than 75 shareholders can elect S corporation status which allows for the profits to flow through the company and directly to the shareholders of the corporation without being taxed. The benefits of a California corporation include:

• Personal liability protection
• Stockholders names are not public
• Availability of corporate retirement plans
• Corporate fringe benefits
• Unending corporation existence
• Tax benefits
• Possible S corporation status
• A single person can hold all offices
• Available to professionals: Doctors, Dentists, Nurses, Attorneys, Chiropractors, Pharmacists, Accountants, etc.

Limited Liability Companies (LLC)

Limited Liability Companies are a preferred asset protection vehicle of many business owners as well as real estate owners. The LLC is a non-corporate business entity that is taxed as a partnership rather than a corporation. As a result of being taxed as a partnership, an LLC is not subject to corporate income tax. Income is only taxed as personal income when you receive income or assets from the LLC. The LLC also protects the personal assets of the members and the officers of the LLC from creditors. The transfer of shares of an LLC can be greatly restricted by the operating agreement of that company. Even if a creditor obtained a membership interest in the LLC, they would only be entitled to their share of profits and would not become a voting member of the LLC unless the board voted unanimously. This provides the members greater control over both the present and future management of the LLC. The benefits of forming an LLC begin immediately upon formation and registration with the Secretary of State.

Advantages of an LLC include:

• Asset Protection
• Avoidance of double taxation
• Limited liability of officers' personal assets
• Reduced paperwork - no requirement to prepare annual company minutes
• Benefits begin immediately
• Continuity of Life

For more information on incorporating please contact:

Law Offices of
Matthew C. Mullhofer
A Professional Corporation
Broadway Plaza
2107 N. Broadway, Suite 103
Santa Ana, CA 92706

http://www.protectmyassets.com/

or email me at: [email protected]
Ph:(714) 827-9955 Fax:(714) 827-9966

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