This is the second post in my series on issues starting a business in the areas of San Bernardino or Rancho Cucamonga, California. My last post served as an overview of topics I will be addressing and discussed the benefit of contacting an attorney to help get your new company off the ground. Hiring counsel can help you to ensure that the process goes smoothly. In this article, I will be addressing another important topic – choosing the structure for your business. For more information on which form of entity is right for you, contact my office to speak with a business law lawyer.
Choosing the right California business structure is important to protecting your wealth
There are several forms of entities under which you can place your new business. A “sole proprietorship” is the easiest to set up. This is a situation where one is operating as themselves, rather than a separate entity. A more complex business structure could be a partnership, which involves multiple owners. If you were to form a Limited Liability Company (known as an “LLC”) then your business is actually an entity that is separate and distinct from yourself. It can buy and sell property, sue and be sued, and more. Another possible structure is to form a corporation. This is also a separate entity that has pros and cons when compared to an LLC. These are just a few of the many business structures, which you may choose to form. In the end, the type of structure you select will depend on the specific needs of your business.
For many small businesses there is a great benefit to starting a California business as a separate entity. That benefit is the liability protection. If you own an LLC, for example, and someone wishes to sue the business then, under most circumstances, they will only be able to sue the LLC and not you personally. This means that such a Plaintiff could potentially take assets in the company but could not touch your personal house, your personal bank account, retirement accounts, etc. Starting a separate entity, therefore, can help remove some of the risk associated with starting a company and can protect your wealth.
A San Bernardino small business attorney can assist with picking the right business structure and maintaining it
Hiring a lawyer can assist you with picking the right business structure and properly maintaining it after you are operating. Counsel will help you understand the pros and cons of each option as well as what may work best in your given situation. It is also important to understand that aspects of the company must be maintained after you start it. These aspects include filing lists of officers at the Secretary of State’s Office, maintaining specific licenses and other requirements, which recur on a regular basis. By retaining someone to help you, you can ensure that these requirements are met while you focus on the most important aspect – running your business.
As a San Bernardino small business attorney I regularly assist entrepreneurs with selecting and setting up a legal entity. I also provide ongoing support. Results vary based on facts, circumstances, and legal issues involved. All cases must be properly reviewed prior to determining applicable law and likely conclusion. Contact my office today to schedule an initial consultation. I also service Rancho Cucamonga, Fontana, Ontario, Victorville, Rialto, Hesperia, Chino, Upland, Apple Valley, Redlands, Highland, Colton, Yucaipa, Montclair, elsewhere in the Inland Empire, as well as Los Angeles.