This is the fourth post in my series on issues, which surround starting a new business in San Bernardino or Rancho Cucamonga, California. My last post focused on maintaining corporate protections after you have formed a new entity. Doing so can protect the personal assets of a small business owner. In this article I will discuss another important topic – whether one requires an attorney to form a new entity. While an attorney may not be required to form the entity, retaining counsel may result in several benefits. Contact my office today to speak with a San Bernardino business law lawyer.
One is not required to have an attorney to start a new business entity. Entrepreneurs are free to conduct their own research into the process and form an entity through the Secretary of State. Examples of articles of incorporation, and other necessary documents, can be obtained through the Secretary of State’s website directly. It is important to note, however, that membership agreements and other contracts obtained through such a website are often meant to be a “one size fits all” solution. In other words, they may or may not contain provisions, which you would choose to include in your agreement. They also may contain provisions that may prove problematic for you down the road. Also, it is possible that one’s research into starting their own company may overlook certain regulations or rules with which they are required to comply.
There are many benefits to hiring counsel when starting a new business. First, an attorney will be familiar with California law and can make sure that you are in compliance with all legal requirements. Second, counsel will assist you in identifying possible issues in your business, which may create future problems. These issues, in turn, can be dealt with in your partnership or membership agreements as well as any other contracts. This type of foresight can help to avoid future disagreements over things such as the sharing of profits, ownership of different business assets, the roles of different business owners, as well as who bears ultimate responsibility for given issues. Furthermore, meeting with an attorney may assist you in foreseeing potential problems, which may help you realize whether it is a wise idea to start the business at all.
As a San Bernardino small business attorney, I help California entrepreneurs with the formation of a new business, the drafting of agreements, and helping to plan for future issues. 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.