If you have the urge to start a supplement company in California you actually have a couple of business types to choose from. These include a sole-proprietorship, a corporation, a partnership, and a limited liability company (LLC).
You’ll certainly want to make an informed choice as to which one of these you’ll go for. The idea is to go for the business type that’ll best complement your situation and business ambitions.
In trying to keep things uncomplicated you may be tempted to go for a sole-proprietorship. The fact that this simplest of business structures doesn’t require you to make formal filings can certainly appeal to you.
Nevertheless, it presents a huge drawback you’ll want to be very wary of. In the event that your business will be unable to settle its debts and obligations, your personal assets could be used to do so.
I strongly recommend the LLC structure for your supplement company – for several good reasons.
Firstly, your personal assets will be protected from possible business debts and lawsuits. Secondly, taxation requirements are comparatively simpler and cheaper with this business type.