The last time I did this, it was the LLC. I worked directly with the Secretary of State, and did not use a service to do it for me.<p>If you are a 100% owner with no partners, you can file your paperwork as a &quot;Disregarded Entity&quot; which means that you have less tax returns to prepare at tax time. If you have partners, maybe a &quot;C&quot; corp. would be better, but this is where I&#x27;d talk to an attorney.<p>You will need a Taxpayer Identification number to create an LLC in the State of California. These are easy to get from the IRS.<p>In California, you will still need to file some paperwork with the Secretary of State on bi-annual basis, and pay the $800 franchise fee annually. Also, you will pay a separate franchise tax on any sales over $250,000 per annum. You have to file form 586 with the Franchise Tax Board annually.<p>One last thing: Although a corporation can protect your personal assets from being taken, you should also have business E&amp;O and liability insurance. The courts may look unfavorably at any corporate entity which does not have insurance, especially if it is obvious that the corporation
was set up in a risky area of business, and was only incorporated to protect the owner&#x27;s personal assets.