Starting an LLC 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.
The operating agreement is the most important corporate document for the new owners of a business to consider. The issues it addresses should be considered 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 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” (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?
If you are starting an LLC 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 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.
Our clients appreciate the deep experience we bring, often based upon expertise with several clients in your specific industry. Taking the time to set your new LLC up correctly in the beginning is what often prevents the issues down the road that lead many LLC’s to business failure.