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Business Formation and Licensing Lawyer for Commercial Construction Companies

Forming a Commercial Construction Company in California

Business lawyer

If you are considering starting a commercial construction company, it is essential to work closely with a local business lawyer who can help you determine the best structure for your business and the professional licenses you will need to obtain. Once your construction company is up and running, you may continue seeking advice from your business lawyer about any disputes that arise, including disputes with the Contractors State License Board (CSLB). Our firm can help you to form an LLC or a corporation, and we can discuss the limits of sole proprietorships and partnerships for these types of businesses. To learn more about starting a commercial construction company, get in touch with an experienced business lawyer in Fremont, CA, at The Law Office of Lynnette Ariathurai.

Choosing a Business Structure for Your Commercial Construction Company

Most commercial construction businesses choose to structure their businesses as either a limited liability company (LLC) or a corporation. There are benefits and limitations to both LLCs and corporations, and the business structure that is better for you will depend upon particular facts and circumstances for your company.

According to the U.S. Small Business Administration (SBA), an LLC is a business structure that has elements of both a partnership and a corporation. Most LLCs provide protection from personal liability for business owners, similar to corporations, and, because of their flexibility, are easier to operate.  With an LLC, your company’s profits and losses will pass through to your personal income tax return like with an S corp. Furthermore, LLCs do not require meetings, nor do they require payment of salary and tax withholding requirements for the Managers. However as an LLC, the self-employment taxes in an LLC can be ominous.

There are two types of corporations—C corps and S corps. Corporations begin as C Corps but may elect to be a S Corp for taxation purposes.  Unlike with an LLC, shareholders of a corporation do not pay self-employment taxes. However, officers of a corporation are employees, and salaries and tax withholding requirements must be met.  There are also annual meeting and other requirements in order to maintain the corporate protections. Corporations are more complicated businesses when it comes to record-keeping and reporting requirements.

For most commercial construction companies, a sole proprietorship or partnership will not offer the liability protection that your business needs. You should speak with an attorney about your options in more detail.

Applying for a CSLB License

When you start a commercial construction company, you will also need to seek licensure. We can determine whether you are eligible and help you to apply for a CSLB license.

Defending Against CSLB Disciplinary Actions

If your business is facing disciplinary actions, seek advice from a California business lawyer who has experience representing commercial construction companies in the state. A disciplinary action could result in a suspension or revocation of your license, which will limit your ability to work in California. Our firm can defend you against the CSLB.

Contact a Business Lawyer for Assistance with Your Commercial Construction Company Needs

Are you thinking about a new commercial construction business? At The Law Office of Lynnette Ariathurai, we regularly help clients in the Fremont area with forming new LLCs and corporations and applying for a CSLB license. Once your business is underway, our firm can also defend you in any disciplinary actions that the CSLB may take against you.

If you have questions or concerns, do not hesitate to get in touch. Contact The Law Office of Lynnette Ariathurai online or call us at 510-794-9290. We regularly represent businesses in Fremont, Hayward, Union City, Milpitas, and Newark, CA.