Selecting the right entity for a new San Diego business is one of the most important decisions you will make.  Starting a business in San Diego 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 customization of the LLC operating agreement or corporate documents will substantially affect not only the profit you retain but the likelihood of present and future success.  This is why it is so important to seek the counsel of the experienced and proven San Diego business formation attorneys at the Watkins Firm.

LLC, S Corporation, C Corporation, Professional Corporation and/or Management Services Organization

Selecting the right entity for your new San Diego business between an LLC, S-Corporation or C-Corporation (or some other entity) essentially comes down to the way in which your company will conduct business, and what you ultimately choose to do with your business down the road.  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, provide legal rights and additional protection for minority interests in disputes or legal matters down the road.  Simply downloading your business formation paperwork from a forms site will not suffice here in California.

Licensed professionals, medical practices and healthcare businesses should consider the California Professional Corporation (PC) as well as a Management Services Organization or MSO.  The PC provides additional protections to licensed professionals and a unique structure designed specifically for that application.  The MSO allows one to separate the “business” aspects of the operation from the delivery of healthcare services and the practice of medicine.  MSOs allow outside investment and attract capital and valuable business expertise to support many business-related functions.

Pro-Tip: “Pay attention to the company documents, if you choose a corporation, as not all corporations are the same. You may choose a corporation, a limited liability company, a partnership, a limited liability partnership, 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 professional license requirements and, depending on the kind of company, all of the resale licensing and permits. There’s all kinds of little things that your old, experienced 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 costly mistakes).

You’re giving birth to a living creature that’s been recognized by the United States Supreme Court. And so what some might call the birth of a company is what we call capitalizing. And so you have these corporate documents and you have to decide on how much ownership will be and who owns what. You might need to discuss reserve shares, by which I mean other ways in which people can own a stake in your company. And then you capitalize it. Either you capitalize it with cash or you capitalize it with goodwill or property or a combination of each. But how you capitalize it can determine whether or not it’s a real company, and ensures you have all those protections of the corporate veil and you’re personally shielded from creditors. So how you start your new business is very important. We’ll help you to set out on the right path, avoiding all kinds of pitfalls, disputes and trouble down the road.” – Dan Watkins, Founding Partner

Sound Advice and Counsel When Selecting the Right Entity for a New San Diego Business

The Watkins Firm charges 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 decades of experience with businesses just like yours here in San Diego.  Not only can we help to get your new company up and running effectively and cost-efficiently, we can help you to make important business connections within your industry as well as banking, and other business relationships that will help you to prosper.

Are you concerned about Selecting the right entity for your new San Diego business or company? 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.

See for yourself the difference that our business law firm, run by proven and successful business people, can make for your new venture.