Foundation for Success: How to Structure Your Business Like a Pro

Starting a business is a milestone worth celebrating — but only if it’s built on a solid foundation. Whether you’re opening a sole proprietorship, scaling your side hustle, or launching a nonprofit, choosing the right business structure can make or break your long-term success. That’s why Black Tech Link’s latest workshop, Foundation for Success: Structuring Your Business Like a Pro, was such a critical conversation for today’s aspiring entrepreneurs and community builders.

The session featured attorney Marissa Talbert, founder and CEO of Talbert Law Office, who brought years of experience and award-winning insight to the table. Hosted by Black Tech Link’s Executive Director Elizabeth Cotton, the workshop was attended by a diverse group of business owners and community leaders from across California and beyond.

A Breakdown of Business Entities

Marissa began with an in-depth look at the different types of business entities — from sole proprietorships to corporations. Each comes with its own level of liability protection, tax responsibilities, and administrative requirements:

  • Sole Proprietorship: Easiest to start, but offers no legal separation between you and your business. This means your personal assets are at risk if anything goes wrong.

  • Partnerships: Automatically created when two or more people begin earning money together. Without formal agreements, each partner shares 50/50 ownership, profits, and liability.

  • LLCs (Limited Liability Companies): A favorite for small business owners. An LLC offers personal liability protection and pass-through taxation while keeping administrative requirements fairly minimal.

  • Corporations (C and S Corps): These offer strong legal protections and complex ownership structures, making them ideal for companies planning to raise capital through investors or shareholders.

  • Nonprofits: Public benefit and mutual benefit corporations come with their own strict rules, including board structures, bylaws, and state/federal filings. Nonprofits must also stay compliant with the IRS and the California Attorney General’s office.

What Entrepreneurs Often Overlook

For LLC owners, Marissa also discussed the benefits of electing to be taxed as an S Corporation — especially for businesses earning more than $40,000–$50,000 annually. With an S Corp election, owners can pay themselves a reasonable salary and save significantly on self-employment taxes. However, making this move comes with administrative requirements like payroll and W-2 filings, so it’s best to consult a tax advisor or attorney.

The Power (and Complexity) of Nonprofits

Marissa also offered a deep dive into nonprofit entities. In California, nonprofits fall into two broad categories:

  • Public Benefit Nonprofits, which serve the broader community

  • Mutual Benefit Nonprofits, which serve members (like clubs or professional associations)

She outlined the steps to achieving 501(c)(3) status, which allows donations to be tax-deductible, and explained the complex filing structure that includes state, federal, and attorney general registrations. She warned that nonprofits are the most heavily regulated entity type in California — and not something to enter into lightly.

Still, the benefits of starting a nonprofit are significant, especially when paired with a for-profit business in a legally compliant way. Marissa introduced the idea of social enterprises and fiscal sponsorships as ways to combine purpose-driven work with sustainable business models.

 

DIY or Hire Help?

Elizabeth Cotton walked attendees through the California Secretary of State’s website, showing how entrepreneurs can start filings on their own. But she also emphasized that DIY isn’t always the best route. Complex situations — especially those involving partnerships, nonprofits, or intellectual property — may benefit from working with legal experts like Marissa.

Marissa offers free consultations through Black Tech Link’s partnership with the Governor’s Office of Business and Economic Development under the SBTAP program. From basic advice to hands-on support with contracts, trademarks, bylaws, or incorporations, her firm is equipped to guide businesses at every level.

Final Thoughts

The most important takeaway? Don’t skip the foundation. Whether you’re an emerging startup or a seasoned founder pivoting to a new model, how you structure your business can protect your assets, clarify your goals, and prepare you for growth.

Workshops like these help demystify the legal steps and empower underrepresented entrepreneurs with the tools they need to thrive.

Want to Join the Movement?

If you’re a small business or nonprofit looking to grow, modernize, and get connected to real opportunity—Black Tech Link is here for you.

➡️ Visit blacktechlink.org
📌 Click on the Small Business Mastery Program
🗓️ Book a free session by hitting Talk With an Expert

Your mission deserves to thrive. Let’s make that happen—together.