Entity Formation

Fictitious Business Name

A Fictitious Business Name is the name under which someone does business. A Fictitious Business name or DBA (Doing Business As license) can be obtained through the County of Orange Recorder’s Office. http://ocrecorder.com/services/fictitious

Forming a corporation or an LLC

When starting a new business, there are many important decisions to make and many rules and procedures that must be addressed. While there is no single source for all filing requirements, the California Secretary of State Business Entities site has helpful information to assist you. http://www.sos.ca.gov/business/be/starting-a-business.htm

Entity Formation Comparison Chart:

Types Initial Cost Legal Cost Yearly Cost Personal Protection Flow-Thru Taxation # of People Board and Minutes
DBA $20-$100 5-Years $0 $0 No Yes 1 No
GP $20-$100 5-Years $500-$1000 $0 No Yes 2-5 No
S-Corp $1000-$1500 $2000-$3000 $800 Min Tax Yes* Yes 99 Yes
C-Corp $1000-$1500 $2000-$3000 $800 Min Tax Yes* No** unlimited Yes
LLC $1000-$1500 $2000-$3000 $800 Min Tax Yes* Yes No Limit No

*Personal protection shield can be broken:

  1. If personal guarantee is signed
  2. If certain legal requirement are not met

** Double Taxation Imposed – Corporation and individuals pay taxes Disclaimer: for specific information, please refer to the appropriate agency.