The San Diego startup and business formation attorneys at the Watkins Firm have more than four decades of experience helping to get new companies up and running.
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.
Questions to Ask as You Are Selecting Your Corporate Entity
What are some of the important questions to ask as you are selecting your corporate entity? One of the most important questions during a San Diego startup 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? If so, you may wish to consider an S Corporation. Will there be more than one owner? What is the relationship going to be like between the owners and how will voting rights be distributed?
The process of starting a new business is all about how a company is going to operate, and what you ultimately intend for it to become. 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.
Why Do You Need a Corporate Entity in the First Place?
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 individuals from the business itself. This requires owners to keep all personal monies and assets completely separate from the business (and vice versa) to avoid the legal and tax ramifications of commingling. The business entity also provides the structure necessary to offer benefits to owners and employees alike.
Why Do You Need Experienced San Diego Startup and Business Formation Attorneys
Why do you need experienced San Diego startup and business formation attorneys from the Watkins Firm? Can’t you just download a couple of forms, tweak them and get to work?
It’s really not that simple, unless it is literally going to be a single owner small business. If there is going to be more than one owner, member, shareholder or investor you will need an experienced business attorney to guide you through the corporate documents to tailor your company to your unique needs and expectations.
The corporate documents associated with a new business are quite legally complex. The documents describe the relationship between the owners, their roles and responsibilities, how disputes will be handled as well as what to do if there is an emergency related to the personal life of an owner. How will ownership interests be bought out in the future? How will the value of an ownership position be established? How do you protect voting rights and control of the company as you bring in additional investors and talent?
All of these questions can be answered with some careful planning at the start of your new venture. This is why you need to work with the Watkins Firm. Draw on our more than 40 years of experience to learn how to avoid the pitfalls that have harmed other companies like yours, and how to grow faster and more efficiently. Ask about our proprietary library of corporate formation documents as well as contracts such as the operating agreement for an LLC or the shareholders’ agreement for a corporation.
We save you money, just like a download site, by starting with a battle-tested proven contract or entity. We simply tailor it to meet your unique needs and structure supporting corporate documents to establish the relationships as you wish.
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 how our more than four decades of genuine San Diego and Southern California business experience can help a company just like yours to start-up, survive and ultimately thrive.
