The San Diego LLC and business formation lawyers at the Watkins Firm have more than four decades of experience here in San Diego and Southern California.
Business formation Attorneys for San Diego and Southern California
Forming a new LLC, C-Corporation or S-Corporation in San Diego is an exciting time for any entrepreneur or business owner. Which business entity is best for your venture? Each structure has specific advantages based upon the nature of the business itself, how many owners may become involved, the income of the primary owner(s), and ultimately how you intend for the company to develop.
One of the most important questions during the LLC and business formation process is “Will the company operate across state lines employing hundreds of people, or is this basically going to be ‘You, Inc.?’” Are you a high wage earner seeking the most advantageous structure with tax advantages for your unique talents? Will there be more than one owner?
Your San Diego LLC and business formation lawyers at the Watkins Firm know selecting a corporate is all about how a company is going to operate, and what you ultimately intend for it to become.
Structural Differences Between Corporate Entities
More is required of the shareholders of a C-Corporation (for example) than the members of an LLC. A C-Corporation is free to conduct interstate business and has the structure to grow into a large entity with thousands of employes. Generally speaking an LLC or S-Corporation is ideal for a smaller business or a limited project such as a joint venture.
The purpose of the corporate entity, in the end, is to protect your personal assets, home, vehicles, possessions and accounts from the debts and liabilities of your new company.
The ”corporate veil” provided by the business entity legally and financially separates it’s owner(s) as an individual from the business itself. This requires keeping all monies completely separate to avoid legal and tax ramifications of commingling. The business entity also provides the structure necessary to offer benefits to owners and employees alike.
There are corporate entities for specific purposes such as a California Professional Corporation or PC which is specifically tailored for licensed professionals as well as a Management Services Organization or MSO that is a companion corporation for a medical practice or healthcare business that actually separates the aspects of owning and operating a business from the practice of medicine. However, an MSO can help to greatly increase the patient experience resulting in increased patient satisfaction scores and health outcomes.
There are risks associated with an MSO for the licensed professional(s) with controlling interest and this is why it is important to work with the experienced medical practice and healthcare business attorneys at the Watkins Firm.
San Diego LLC and Business Formation Lawyers Get Your Entity Formed and Operational
The San Diego LLC and Business Formation Lawyers at the Watkins Firm provide important guidance during entity selection and ensure your entity is properly formed and operational. The corporate documents like the operating agreement associated with a San Diego LLC and the shareholders’ agreement of many corporate entities are quite legally complex. Taking the time to sit down with your experience Watkins Firm attorney will get the business structured from success from the outset, while avoiding expensive and counter-productive disputes and shareholder lawsuits down the road.
If you are considering starting a new business in San Diego 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. Learn more about our decades of experience helping businesses just like yours to start-up, survive and ultimately thrive.
