Starting a new business in San Diego requires more than a few downloaded forms, or submitting a name to the Secretary of State. It requires legal experience and insight from the proven San Diego business formation attorneys at the Watkins Firm. We have helped to start thousands and thousands of new companies over 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 understand what it takes to get a new business up and running and are here to help you to select the right entity, organize the corporate documents and get to work.
The Operating Agreement or Shareholders’ Agreement Are Important Documents
The operating agreement of an LLC, or Shareholders’ Agreement and Bylaws are often overlooked by new companies and entrepreneurs trying to get a business up and running. However, these are perhaps the most important area of focus for the new owners of a business to consider.
Pro-Tip: Take the time to get the corporate documents right. Your attorney should explain each of the dozens of potential options and clauses, and provide advice on how strong companies get things right from the start.
The vast majority of business disputes and lawsuits we encounter involving the owners of a business could have been avoided by simply giving the right priority and attention to the corporate documents at the outset. Most business disputes are about money. The corporate documents establish the relationship between the owners and anticipate issues that may arise down the road. Disputes are much less likely to occur when the corporate documents have been properly discussed and implemented up front.” – Dan Watkins, Managing Partner
Starting a new business in San Diego requires a good, experienced lawyer. Which choices should you make? These important corporate documents address the relationships between the owners of the company, and how money and profits will be managed. How will the business be conducted and what are the priorities and values that drive your vision?
Paying attention to these documents during business formation will prevent a host of disputes and lawsuits down the road. Reaching a mutual understanding and agreement is much easier at the start of the business, when all are working together and there is relatively no baggage to hinder open and productive conversations.
The operating agreement or shareholders’ agreement not only specifies the percentages of ownership, voting rights and how profits are to be distributed, it addresses critical issues associated with sustaining the life of the business. What happens if one of the “members” or “shareholders” (owners) goes through a personal divorce, how will that person’s interest in the business be valued? How will new investors be brought into the business? What happens if there is a cash call and one of the members cannot meet their required contribution? What happens if an owner, member or primary shareholder becomes incapacitated or passes away?
Starting a New Business in San Diego Requires An Experienced and Proven Business Attorney
If you are starting a new business in San Diego you need to know how to protect against the minority owner biased laws here in California and in most states. Downloaded forms are generic and do not help to build the foundation that will carry the business through the bumps and challenges that arise in the future. Why is it that more than half of new businesses fail? After serving the San Diego business community for more than four decades, I can tell you that most businesses fail due to a failure to take the time to set up the business and associated operations with careful thought, advice and planning.
If you are 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.
