Why is it important to select the right entity for your new company? Starting a business in San Diego or anywhere in California is an exciting time. In most cases, the entrepreneur or future owners are trying to keep costs down while doing everything possible to get their business up and running. The selection of your entity and the establishment of the associated corporate documents is one of the most important business decisions you can make.
It is important to seek the counsel of the experienced business formation lawyers at the Watkins Firm. We have decades of experience helping to form new businesses in the San Diego area.
Pro-Tip: “…before we even select an entity, everyone thinking about going into business or in business, you should do what most successful business people do, and that is get a relationship with your lawyer. So you’re doing everything the best way, not just legally, but from a an experienced perspective.
I’ve had 10,000 clients like you and the successful ones did it this way. From your banker, making sure your access to funds is locked in and accounted for and, and a good accountant or CPA, not just a tax person, an accountant or CPA that gives you business advice on making a profit. Those are the things you think about. And then you come to your lawyer who talks about the best way for you to go based on your profession and universal things you should have and special things just for you based on your own personal life and your own investment.” – Dan Watkins, Founding Partner
The process to select the right entity for your new company here in San Diego often comes down to the choice between an LLC, S-Corporation or C-Corporation. How will you conduct business? How many owners, members or shareholders will have an interest in the business itself? Each entity provides important protections for you as owners under the law. It is extremely important to understand that California has special laws which, in the absence of specific language to the contrary, give legal priority to minority interests in disputes or legal matters down the road. Simply downloading your entity formation and operating or shareholder agreements from a forms site will not suffice here in California.
Medical Practices and Healthcare Entities
Medical practices and healthcare entities, as well as other licensed professionals often rely upon the California Professional Corporation. It is specifically structured to provide additional protections for each licensed owner while ensuring the standard protections of the corporate veil.
The Management Services Organization or MSO often accompanies a professional corporation. The MSO allows business professionals to run the business side of a medical practice or healthcare business without interfering with or violating California’s regulations regarding the practice of medicine.
Select the Right Entity for Your New Company and Gain a Valuable Business Asset
When you select the right entity for your new company with the Watkins Firm you gain an additional and valuable asset – a business attorney you can call upon to answer questions and provide sound advice and counsel.
The Watkins Firm has helped to form thousands of businesses in our 40+ years of experience serving the business, science and tech, real estate and medical / healthcare communities here in San Diego and across California.
We charge a flat rate for the establishment of your new company, and we provide a free and comprehensive consultation ahead of time so that you understand the issues at hand, and why it is important to work with an attorney instead of trying to do this yourself. Our clients appreciate our candid, direct input based upon more than four decades of experience with businesses just like yours here in San Diego. We will help you to select the right entity for your new company and get your business up and running effectively and cost-efficiently.
Ask about the important business connections we can help you to make within your industry as well as banking, and other business relationships that will help your new company to prosper.
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.
