If you are starting a business and are thinking of forming a new LLC in San Diego by downloading forms online there are some questions you might want to ask yourself.
The first would be simply: “Am I willing to risk all of the money, sweat and time I’m going to pour into this business?”
The next question behind that is “Am I willing to risk my house, car and personal funds as well?”
I realize these are stark questions, but these are the genuine issues behind starting a company and going through the process of forming an LLC in San Diego. Yes, standardized downloaded forms may provide the initial paperwork needed to form your California LLC, but what then? You pay your fees to the State of California and you’re in business! Perhaps, but at what cost?
Most new companies encounter one of 3 problems within the first 6 months:
- They run short of operating capital and need to bring in an investor
- There are issues between the members about who is doing what and someone not carrying their weight
- They run into legal issues with customers or a supplier
The LLC isn’t a form that allows you to conduct business in the State of California. It’s a protective shield. Forming an LLC provides a layer of protection between your new company, and your own personal assets. If some issue arises the LLC will prevent creditors from being able to come after your home, car, bank accounts or worse, your spouse and their income. A well written operating agreement for an LLC also establishes up front who will be doing what, how new investments will be brought into the company if needed, and how profits will be divided. The LLC should address major life events like a divorce or the death of one of the members.
I understand that most entrepreneurs starting their own business are boot strapping a lot of it with their own money, and the last thing they want to do is pay an attorney. I have no interest in hitting you for some useless fees. I want to help you to lay a foundation that will protect you and your family, strengthen your business and prepare you for one of the most exciting journeys of your life: business ownership.