Are you forming a new company in California and wondering if you should choose an LLC or form a corporation? There are many things to take into consideration at start-up, and one of the first questions may surprise you.  In many ways, one of the most important questions when starting a new company is “what is your exit strategy?”

I know, a little different from what you may have been expecting, but your goals for what you intend to do with your business long term and what you want to do with it in the end go a long way to selecting the right entity at the beginning.

Another question when forming a new company in California would be:  Is this new company going to be basically “You, Inc.” – a vehicle that protects you while you provide services on your own or do you intend something much larger?  Will there be more than one owner?  How will you establish the responsibilities and relationship of the owners and how the company is to be run now, and in the future?

A solo enterprise might be an LLC, but if you intend to make more than $150,000 a year you will get to keep a lot more of your money if you consider an S-Corporation.

How is the ownership of the company going to be structured, and who is going to be responsible for specific tasks within the business? How will the company raise additional capital when needed to expand the business, or to survive swings of cash flow versus income? Do you want to do business across state lines? Will you be employing others, and if so how many? What federal, state and local laws govern what it is you want to do?

There are so many issues to consider when forming a new company in California and so many questions to be asked and answered that you cannot entrust your business to some forms downloaded from a website.

You see, the real reason to have a “business” is to protect yourself, your family, your personal assets, your partners, and your partner’s personal assets if and when something doesn’t go as expected. The business entity provides protection for your home, your personal money and possessions. This is known as the “corporate veil” and is the entire reason for having a business entity in the first place.  How can you take the type of risks that are necessary for a business to be successful in these complex and sophisticated times?  How do you know which entity provides the protections you need, while providing the structure for you to grow into the business you envision in your mind?

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.

Pro-Tip: “If you choose a corporation for your new company, not all corporations are the same. If you choose a limited liability company, if you choose a partnership, a limited liability partnership, a C corporation, an S corporation, a California Professional Corporation, a Management Services Organization or MSO, there’s all types of different variations. And then you can get into the nitty gritty based on your profession and all the regs and all the uh, professional license requirements and all of the, depending on the kind of company, their resale license and permits. There’s all kinds of little things that this old business lawyer knows about and can tell you about from the get go. As opposed to you finding out after you’ve made a few mistakes,

We won’t just talk for 15 minutes. We’ve helped literally tens of thousands of businesses over the decades we’ve served the business community here in San Diego and across California, and we can help you. Before you ever choose to pay us a penny, we will give you sound experience and advice on the road ahead, the pitfalls of your specific type of business and how others have started exactly where you are and thrived.

We want to help you to build the business of your dreams, not generate a few legal fees. Skip the download forms, they’re not complete anyway. They certainly won’t ask you the questions you need to consider, nor help you to chart the course from here, to tomorrow, to the business of your dreams. We can, and we will.” – Dan Watkins, Founding Partner

The Watkins Firm has helped to form literally thousands and thousands of new businesses over our 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California.  Draw on our experience and all of the extra advice and counsel we provide to our clients at startup.  It won’t cost you much more than the download option, but you will hit the ground running at full speed with full protection, a business coach with more than 40  years of experience, and a solid future ahead of you.

We invite you to review our podcast Episode 34 – Business Formation as well as the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.