Are you planning to start a successful business in San Diego?  What do you need to know as you begin the process of forming a company and starting your new company? The Watkins Firm has more than four decades of experience helping entrepreneurs and new business owners with the formation of their company.  Our clients value the substantive conversation we have from the outset, the value of all the services we provide and the extensive business experience they can draw on now and at each step of their business growth.

3 Key Tips about Starting a New Company in California:

• Have a plan; know what you intend to accomplish, and give thought to not only how things get started and built, but how to make a valuable target for a merger or acquisition.
• The selection of the right entity for your new company will ensure it has the greatest opportunity for success.  There are many corporate entity types to choose from in California.
• You need an experienced, proven business attorney to provide sound counsel at every step in your business, now and in the future.

Starting a Successful Business in San Diego Begins Requires a Vision

Business planning is essential before starting a successful business in San Diego or anywhere in California.  We know, “planning” seems like such a huge and sometimes complex task.  Every day throughout the state of California, as well as other areas, new businesses open their doors.  While some of these companies are on the right path, others have taken a misstep as they have overlooked the importance of having and working a plan.

It may surprise you to learn that your plans for the business actually impact everything from entity selection to how your corporate documents must be structured.  You are about to invest a substantial amount of hard work, sweat, time and money into your new venture.  Understanding some of the ideas you have about the business itself and where it may be going allows us to get you off to the fastest and most successful start possible.  It also helps us to customize LLC operating agreements or corporate documents for a corporation to protect your own interests and everything you are about to build.

Successful Business Owners Value Sound Advice and Experience

For many entrepreneurs, the most difficult part of starting a business is simply getting started.  It is easy to think up an idea, but actually putting it into action is another thing entirely.  This is why you need the Watkins Firm help you to start a successful business in San Diego, or anywhere in the State of California.

We’ve helped to start thousands and thousands of new companies over the years.  In fact, it’s likely we’ve worked with companies like the one you intend to start, and can help with connections in that market, and to avoid the types of mistakes and pitfalls that challenge or end other companies like the one you intend to start.  t is important to discuss your plans and ideas with our successful, proven business formation and new business start-up attorneys.  We are small business owners ourselves.   We will share what has worked well for others, as well as some of the pitfalls to avoid which have brought other similar ventures to a premature end.

A Downloaded Online Form Package, or a Proven, Custom Tailored Company for a Similar Cost?

Many people download business formation documents from a website in order to save costs.  It is important to understand the corporate documents and set them up accurately from the outset.  The corporate documents are the foundation of your company.  There are literally hundreds of optional clauses and blanks in these downloaded forms.  How will you know what is best for your unique circumstances while meeting the rigid, extensive laws of the State of California?

We begin with existing corporate documents from our extensive proprietary library of proven business documents, and custom tailor it to meet your unique application(s).  This saves you time and money.  Our formation documents are proven.  They’re up to date with the latest changes in federal, state and local business laws and regulations.  In addition, one of our experienced business attorneys will sit and discuss your plans, and provide a lot of insight and counsel.  This forms the basis of a strong coaching relationship, allowing you to pick up the phone to call with a question or challenge at any time down the road, and most often, we don’t bill our clients for these types of calls.

There are Many Types of Potential Entities for a New California Business

What entity will be the best match for what you intend to do with your business?  There are many California entities to choose from, including, but not limited to:

• C Corporation, S Corporation, or Limited Liability Corporation or LLC
• Joint Venture
• Many forms of Partnerships
• Professional Corporation (for licensed professionals in California)
• Management Services Organization or MSO

Pro-Tip: “if you choose a corporation, not all corporations are the same. If you choose a limited liability company, if you choose 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 uh, professional license requirements and all of the, depending on the kind of company, their resale license and permits. There’s all kinds of little things that your old business lawyer knows about <laugh> and can tell you about from the get go. As opposed to you finding out after you’ve made a few mistakes.

This process is a lot more than just picking an entity.  You’re giving birth to a living creature that’s been recognized by the United States Supreme Court. And so you have these corporate documents and you have to decide on how much ownership will be and who owns what. Then you decide about what potential ownership there are. Reserve shares, I mean other ways in which people can own it. And then you capitalize it. Either you capitalize it with cash or you capitalize it with goodwill or a combination or a property. But how you capitalize it can determine whether or not it’s a real company or you have all those protections of corporate veil and creditors and you’re personally shielded. So how you start it is very important. And thinking about it, we’ll send you on the right path to avoiding all kinds of pitfalls and trouble.

And let’s talk about the corporate veil for a minute. Because the whole reason to have an entity is to separate you the person from the legal person of the business.  That’s a big deal, especially if you’re going to be doing some big business, you’re going to have big liability or you could personally not have big liability. And also you can have an entity that can be sold. You can have an entity that can be sold in whole or bring in investors. If you do everything right, you get to do all these things. If you get a big opportunity and you didn’t set your company up correctly, then you can’t have your friend with an extra million dollars say ‘I’d like to invest.’  Instead of easily replying ‘come on over,’ you’ve got to rewrite everything and you’ve got to restructure everything and you’ve got to hope you didn’t make any mistakes. And all of a sudden that opportunity doesn’t look so like a good deal, and that person who’s got the investment money will say, ‘well, this person’s not professional. This person’s not really serious about doing business.’ And you’ll miss it all because you didn’t pay attention in the beginning when you formed a company.” – Dan Watkins, Founding Partner

You Need an Experienced Legal Partner When Planning to Start a Successful Business in San Diego

We invest a lot of time in our clients at the outset.  We want to help them start a successful business in San Diego, or wherever they intend to business in California.  These aren’t billable hours, they are candid conversations that form the bonds of a strong business advisory relationship that most often lasts years if not decades. We share insights gained across more than 40 years of real experience and provide the sound advice and counsel you will need to get your new project up and running.

If you are considering opening a new business 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 all of the ways the Watkins Firm can help to ensure your ideas become a real, sustainable and profitable business reality.