Question: Which Business Entity is Best Suited for my Business?

Written by: Andrew Gale - Orange County Business Lawyer

Orange County Business Attorney QandA Which business entityI am a private chef seeking to write up a business plan to teach cooking for couples in a creative and fun atmosphere.

Workshops will be half a day to a full day. They will take place in hotel conference rooms, cooking shops, private homes, or anyplace where I will receive permission from the owner to use their space.

I may hire independent chef instructors to teach so I can focus on operating the business.

I’d like to keep my personal & business finance separate and prevent double taxation. Which form of business entity is best suitable for my business interest?

Answer: An S corporation would be very suitable for your purposes

However, make sure to properly classify the instructors you mentioned as employees or independent contractors. You should discuss this with your business attorney.

Over the past several years, this has become a huge issue and I have defended so many employers who misclassified their employees as contractors.

In addition, do not rely on the advice of non-professionals in the field of internet services about incorporation. Make sure that your business is incorporated by a business attorney and be sure to comply with all corporate laws including maintaining your corporate formalities at least once a year at a minimum.

Be sure to draw up all contracts in the name of the corporation. Pay yourself a reasonable amount of salary. Do not commingle your personal money with the bank account for the corporation. Start with a reasonable amount of capital in the bank to pay creditors. Record the capital raised with the Commissioner of Corporations. Do not forget to issue stock and record it in your share ledger.


Andrew Gale – Incorporation Attorney

Attorney at Law Offices 1820 West Orangewood Avenue, Suite 104a, Orange, CA 92868 Office: +1 (714) 634-4838. I provide legal advice, counseling and related services to entrepreneurs including the formation and management of their corporations and estate plans.

My Law Office is based in Orange County California and I have practiced law for 30 years. I have given advice to more than 1000 small business owners on the best ways to set up a company, what types of business entities (corporations, limited liability companies, partnerships) are best suited for them and their small business, how to legally run the business to protect their assets and how to successfully transfer the business to family or key employees through the proper use of estate planning and trusts.