How can a skilled San Diego business formation attorney from the Watkins Firm help to establish your company while laying the groundwork for success now and in the future? Business formation and planning is an exciting and detailed process for any would-be entrepreneur. Business planning and business formation can be the difference between the more than 80% of new companies which fail in the first five years and a successful business which will prosper, increase in value and provide substantial financial returns.
The Corporate Veil
Why do you need a business entity in the first place? While the specific selection of your entity is based upon the nature of your business and its operations, the primary purpose for establishing a business entity is what is known as the “corporate veil.” A business is actually a separate being from those who own it in the eyes of the law. The primary advantage of a corporate entity is that it separates you personally, the owner(s), from the liabilities of the business you are about to form.
The corporate veil protects the personal assets of business stakeholders (and their spouses) from the creditors of the business itself. The corporate veil isn’t just something which is formed when you incorporate. It is something which must be protected at every step of your business journey.
California Has Unique Requirements to Consider During Business Formation
California is known as one of the most challenging environments in which to do business, especially for an employer. One of the first decisions is which state to incorporate in. Many online platforms and out-of-state attorneys might believe that incorporating as a Delaware corporation and registering your company in California and other states where your business will be conducted is the only option.
Your skilled San Diego business formation attorney from the Watkins Firm will spend a lot of extra time with you at the outset of your enterprise. You can draw on more than 40 years of genuine business experience in companies of all sizes and from virtually every vertical market. Ask about our “Startup Package” which is specifically designed to minimize the impact on your budget while providing extensive insight, counsel and legal services required to complete planning and get your business entity up and running.
Choosing the Structure of Your Entity or Entities
When it comes to choosing a corporate structure, there are multiple options to consider including a partnership, sole proprietorship, C Corporation, S corporation, and Limited Liability Company or LLC. California offers a “Professional Corporation or PC” which is a unique and specific entity for licensed professionals such as medical professionals, dentists, lawyers, CPAs, architects and engineers. Those in the medical and healthcare field should ask your skilled San Diego business formation attorney at the Watkins Firm about a Management Service Organization or MSO.
Each corporate entity has its own set of formation rules and tax implications. Different entities provide different flexibilities based upon the nature of how and where you intend to do business, the timing of income and associated taxation through a fiscal year versus a calendar year, whether you are a local company or will conduct interstate or international business and how you intend to grow.
The Secret Sauce: Corporate Documents and Business Succession Planning
Like the download sites and online platforms, the Watkins Firm has an extensive library of corporate documents which have been proven here in San Diego and Southern California over the past 40 years. They are constantly updated to reflect changes in federal, state and local laws and reflect the unique issues associated with conducting business here in California.
We save our clients money by taking an existing set of corporate documents and carefully crafting them to reflect our client’s unique circumstances and needs. Our clients receive battle tested, proven documents which are tailored to their specific requirements while remaining competitive and cost-effective.
However, the secret sauce, the insider secret of any corporate entity consists of a set of corporate documents. These documents must be tailored clause by clause (and there are over 100 of them) to reflect your specific goals and objectives. The “operating agreement” in an LLC, or the shareholders’ agreement and bylaws in an S Corporation, C Corporation, PC or MSO.
These crucial documents not only structure how the business is to be operated, but address critical issues such as “succession planning” or what happens in the event of an unforeseen episode in the life of a business owner or stakeholder. What happens if a member or shareholder dies or becomes incapacitated? What happens if one of the stakeholders files for personal bankruptcy or is unable to meet a capital call? What are the voting rights and how and when will money be distributed?
The corporate documents are the “secret sauce” which separates those businesses which survive and thrive from those who encounter serious challenges down the road resulting in substantial business disruption and litigation.
Why Do You Need a Skilled San Diego Business Formation Attorney From the Watkins Firm?
Why do you need a skilled San Diego business formation attorney from the Watkins Firm? How can more than 40 years of actual real-world experience add insight, power and strength to your new company?
If you are serious about your new business there are important plans to be formed, details to be attended to, decisions to be made and actions to take (not to mention the challenges that await once your new business is launched).
The conversation begins with a substantive, free call with Dan Watkins or one of our senior attorneys. This call will cost you nothing, but is sure to answer many of your questions and help you to understand the difference between downloading some forms, paying a fee and going for it versus a well-informed plan of action, as strong entity and a business relationship you can and will draw on in the months and years to come.
What is the difference between the vast majority of new businesses which fail in the first five years and those who not only survive but thrive? Ask Dan. After more than 40 years of genuine real-world business experience you are sure to receive genuine, sound advice and counsel and the services you need to succeed.
We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
