Los Angeles Small Business Lawyer

Law and compliance influences all areas of a small business environment, and various complex legal challenges confront business owners and managers. At Law Advocate Group, an expert Los Angeles small business lawyer can provide you with reliable and effective representation in legal matters that arise every day in the small business world, including issues affecting entity status, commercial disputes, employment matters, partner disputes, financing issues, business contracts, and asset transactions.

We have a team of the best small business lawyers in Los Angeles that provide comprehensive legal advice and counsel to small business entities to facilitate selection of the appropriate business form. The firm’s team of professional attorneys also aid established companies in their day-to-day legal problems and support various multifaceted small business transactions, keeping our clients’ best interests in mind. The firm keeps abreast of changes in local, state, and federal law so it can represent its clients in all stages of their operations, from regulatory compliance to transactions to business litigation.

Call our Los Angeles business law firm today to schedule a consultation. (310) 651-3065

Law Advocate Group, LLP | Small Business Law Firm Los Angeles

If you run a small business, you understand that the stakes are high. Tremendously high. With all of the laws, codes, and regulations on the books, it can be difficult for even the most diligent entrepreneurs to stay on top of everything. To make matters worse, you must worry about legal threats from consumers, competitors, and other interests. Small Businesses face legal disputes every single day in America, but how can you protect your interests and focus on what truly matters (your day-to-day operations)?

At Law Advocate Group, we can help you to find a knowledgeable small business attorney in Los Angeles, capable of counseling and representing you as needed, and ensuring that your interests are protected.

There are many reasons to choose Law Advocate Group when you need a qualified small business lawyer in Los Angeles. We fight to protect small business owners in LA and throughout Southern California.

Our team of award-winning business attorneys boast nearly a century of combined experience in small business litigation. Not only do we understand the laws, but we understand the Los Angeles marketplace better than anyone else. We proudly serve Los Angeles, Beverly Hills, Santa Monica, and all of the greater Los Angeles area, and we know the landscape well enough to navigate the most complex codes and regulations as they pertain to the local market.

We combine knowledge and experience with an aggressive approach to ensure the optimal outcome for small business owners in Los Angeles. Not only do we understand the process, but we fight tooth-and-nail for our clients, often when others won’t. Small Business Law is a tough game, and you need an ally who is willing to fight tirelessly on your behalf. That’s where we come in. When you need the best small business attorney in Los Angeles, you won’t do better than Law Advocate Group, LLP.

Our Los Angeles small business lawyers have won some of the top legal awards in the business, and have received stellar reviews from peers, customers, and governing bodies alike. Get in touch with us to learn more about the many prestigious commendations and testimonials that we have received, and see for yourself why Law Advocate Group, LLP, remains the leading small business litigation firm in the Los Angeles area.

Understanding LLCs and Limited Partnerships

Starting or running a business in California? You’ve probably heard about LLCs (Limited Liability Companies) and Limited Partnerships. These are two popular ways to structure your business. Below is a breakdown of what they are, how they work, and what to consider—without all the legal jargon.

What Is an LLC (Limited Liability Company)?

An LLC gives you the legal protection of a corporation (your personal assets are generally protected if the business is sued or goes into debt) while still being taxed like a partnership, meaning the profits or losses pass through to your personal taxes instead of being taxed twice.
In simple terms:
You get liability protection without all the corporate formality, and flexible tax options.

How Do You Start an LLC in California?

To form an LLC in California, you need to:

File Articles of Organization with the California Secretary of State using Form LLC-1.
Create an Operating Agreement, which can be written or verbal, before or after filing. This document lays out how your LLC will be run.
Choose a name that includes “LLC,” “L.L.C.,” or “Limited Liability Company” at the end.

Why Choose an LLC Over Other Business Types?

LLC vs. Limited Partnership

In a Limited Partnership, one person (the general partner) is personally liable for the business’s debts.
In an LLC, no member is personally liable—everyone gets protection.
Limited partners can’t manage the business without losing liability protection. LLC members can manage the business and still keep that protection.

LLC vs. S Corporation

S Corporations are more restrictive: only U.S. citizens/residents can be shareholders, and there’s only one class of stock.
LLCs allow:
1. Different classes of ownership
2. More flexible profit-sharing arrangements
3. Membership from individuals, corporations, trusts, and even other LLCs (domestic or international)

Who Runs an LLC?

You get to choose how your LLC is managed:

Member-Managed: All members share in day-to-day decisions.
Manager-Managed: You appoint one or more managers to handle operations. These managers don’t have to be members (owners).

Important: You must state the management structure in your LLC paperwork, and that choice overrides anything in your Operating Agreement.

What Responsibilities Do LLC Members and Managers Have?

Anyone managing or making decisions for the LLC has fiduciary duties, which means they must act in the best interest of the business and its members, similar to business partners.

How Are Decisions Made?

Voting rights can be customized in the LLC’s Operating Agreement. If you don’t set specific rules, California’s default rules apply:

Each member votes based on their share of profits.
Unanimous agreement is required to change the Articles of Organization or Operating Agreement.
For most other decisions, a majority vote based on ownership interest is enough.

Downsides of an LLC

Not great for existing corporations: If you already have a corporation (even an S Corp), converting to an LLC could result in a large tax bill.
Not allowed for licensed professionals: Doctors, lawyers, and other licensed professionals in California can’t form an LLC to run their practice.

What About Limited Partnerships?

A Limited Partnership (LP) is another type of business structure. It requires:

At least one general partner (who has full liability)
At least one limited partner (who has limited liability and usually just invests)

LPs are taxed like partnerships, avoiding double taxation. They also allow profits to be divided however you choose, not strictly based on ownership percentage.

Pros of a Limited Partnership

Avoids double taxation
Flexible in dividing profits and losses
Easier to bring on investors without giving up control

Cons of a Limited Partnership

General partners are fully liable for business debts
Limited partners can lose their liability protection if they get too involved in managing the business
Not ideal for simple or newer businesses—it’s a bit more complex and riskier

Final Thoughts

LLCs are often the best choice for small businesses in California because they provide strong liability protection, flexible management options, and pass-through tax benefits. However, every situation is different. If you’re unsure which structure is right for you—or how to set one up—a small business attorney from Law Advocate Group can help you make the right decision for your specific needs and goals.

To speak with a knowledgeable small business attorney today, call us at (310) 651-3065 or fill out the form below so that we may get in touch with you as soon as possible.