Starting a business in San Diego is an exciting time for any entrepreneur. One of the first decisions you will face is the selection of your business entity: LLC, S-Corporation, C-Corporation, or Professional Corporation (PC). The business entity legally separates you personally from the business you own. This prevents creditors of the business or legal liabilities of your company from pursuing you personally, or attaching your personal assets.
The selection of your entity is based upon several factors. The attorneys at the Watkins Firm have served the San Diego business community for decades. We have helped hundreds and hundreds of businesses to start-up, grow, survive legal and financial challenges and ultimately be acquired or merge with other businesses and corporations. Each entity provides advantages and disadvantages based upon taxation, the attraction and addition of investment, control, and liability. The nature of your business should inform the decision of the entity which is best for your business.
Starting a business is much more than simply downloading a few forms, filing them with the State and obtaining licenses. Careful planning should be undertaken in the beginning, when everything is positive and everyone is working together. One of the most overlooked aspects of business formation is the operating agreement or corporate documents. These should establish how ownership interests will be valued in the event of divorce, a disabling illness or death. They should also anticipate all issues the business will face as it progresses, and how challenges and disputes will be resolved. In addition, the roles of primary players should be clearly established as well as the distribution of income and profits.
Setting up your company properly when starting a business in San Diego provides a solid foundation. You are going to pour your effort, time, and money into this venture. You are assuming specific risks. Learn from our decades of expertise, and the mistakes other businesses have made that ultimately resulted in the loss of all the effort, time and money invested. Avoid pitfalls, grow faster and build a stronger business. Contact the Watkins Firm or call today for a free consultation at 858-535-1511.