Thanks for taking the time to find out about our connection to El Segundo, California, located on the Santa Monica Bay. El Segundo got its name, which means “the second” in Spanish, when it became the site of the second Standard Oil refinery on the West Coast. George H. Peck became the owner of the 840 acres where the Chevron Refinery is now located. Subsequently, the Chevron El Segundo Refinery has been a proud member of the community since 1911. Presently, El Segundo is home to more than $1 billion in active and planned business development.
El Segundo and Los Angeles coast were first settled by the Tongva and Chumash Native American tribes hundreds of years ago. The area was once a part of Rancho Sausal Redondo, which means “Round Willow Patch Ranch”. Rancho Sausal Redondo extended from Playa Del Rey in the North to Redondo Beach in the South.
“A big business city with small town charm!”
El Segundo is definitely known as a well-planned, well-defined business community. The significant business development demonstrates the clear vision for the future. The new creative office spaces and various business campuses have something for everyone. Big companies and small find their home in this wonderful community.
The El Segundo business environment is well-balanced. While the thriving business community is vast and welcoming, the small-town community feel is still prevalent, providing high quality of life. With its beautiful tree-lined neighborhoods, award-winning schools, parks, and athletic fields. Residents of El Segundo also enjoy a wealth of dining and retail experiences.
The heart and soul of the El Segundo community is the historic downtown district. Nestled between the beach and quiet residential neighborhoods, the downtown area is home to some of El Segundo’s most unique businesses, including custom surfboards, modern dining, a vintage movie theater, and a museum of modern art.
The business community also includes several unique districts including: Smoky Hollow, Continental Park, Plaza District, The Edge, the Aerospace District, the Tower District, and The Wedge.
An economy fueled by aviation and petroleum
El Segundo is also known for several aviation-related and petroleum-related industries and operations located there. In 1928 William Mines leased land in El Segundo for a flying field. Two years later, the Los Angeles Municipal Airport, later renamed Los Angeles International Airport, opened north of El Segundo. The presence of this major airport eventually led to various other aerospace and aviation-related firms in the El Segundo area. Some of the more famous ones include Boeing, Raytheon, Lockheed Martin, Northrop Grumman, Wyle Laboratories and The Aerospace Corporation.
The Benefits of Pass-through Businesses
Pass-through businesses are the most common entity chosen for family-owned and closely-held businesses. Consequently, the number of pass-through business entities has increased substantially over the last 30 years. On the other hand, the number of traditional corporations has decreased. Now, pass-through businesses make up nearly 94% of all businesses, and they earn more than 64% of total business net income in the United States.
What does “pass-through” mean?
The term “pass-through” means that the business profits are passed directly through the business to the owners and are reported on the owners’ individual income tax returns. In contrast, a traditional C Corporation pays corporate income taxes at the entity level. The owners or shareholders, also pay taxes on the same income when they receive a dividend or sell their stock and realize a capital gain. Another difference between pass-through businesses and traditional corporations is that owners pay the full tax on their business income each year, as the business earns it. Whereas, the owners of a traditional corporation are allowed to defer taxation under certain situations.
Liability for pass-through businesses
Most LLCs are taxed as partnerships, but an LLC can elect to be taxed as a C Corporation. Traditional partnerships are similar to LLCs, except that they must have at least one partner with unlimited liability for the partnership’s actions and unpaid liabilities. With general partnerships, on the other hand, all members have unlimited liability. As such, LLCs have replaced most partnerships as the chosen business entity when creating a pass through entity.
If you have questions regarding pass-through entities, or any other business planning needs, please contact the Schomer Law Group for a consultation, either online or by calling us at (310) 337-7696.