If you're thinking about forming a limited liability company or you have already done so, you likely have asked yourself, "Should I form my limited liability company in Delaware or California?" The answer to this question is almost always "it depends," but understanding the basics of the analysis is helpful.
California state law classification of a business entity is not always the same as the tax classification of an entity. Under the "check the box" treasury regulations, a business entity is classified either as a "per se" C-corporation or as an entity eligible to choose its tax classification (referred to as an eligible entity).
As discussed in our previous blog post, forming an LLC can be simple, but deciding issues related to tax, liability, management and capital concerns are best left to an attorney. But figuring out and implementing a formation plan does not mean you’re ready for business. Once the LLC is formed, there are several things to do before it can begin conducting business. That will be our focus in this blog post.