once you decide to establish a business, a primary consideration is the type of business entity to form. the information is intended to provide a basic understanding of the different business structures and is not intended to provide legal advice. the sale of stocks or bonds can generate additional capital and the longevity of the corporation can continue past the death of the owners. to form a corporation in california, articles of incorporation must be filed with the california secretary of state’s office. a california llc generally offers liability protection similar to that of a corporation but is taxed differently. in addition to filing the applicable documents with the secretary of state, an operating agreement among the members as to the affairs of the llc and the conduct of its business is required.