Starting a new business venture can be an exciting time. Regardless of the size or type of industry, choosing the right structure and setting your business up for success is crucial. By starting off on the right legal foundation, you can protect yourself from personal liability, mitigate losses, and increase the opportunity for success.
If you are planning to start a new business, it is important that you consult with an experienced California business law attorney for detailed guidance. At the Law Offices of Jerry J Goldstein, I have the experience and resources to guide and assist new entrepreneurs and local business owners in business formation legal matters. I am available to discuss your unique business goals and walk you through every stage involved in the business formation process from start to finish.
My firm — the Law Offices of Jerry J Goldstein — proudly represents clients throughout the Coachella Valley including Palm Desert, California, as well as communities in and around Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties, among others.
Determining how to structure your new startup venture is important and will have significant ramifications on many different areas of your business. Depending on your business goals and unique needs, here are some common business structure options available for you to choose from:
A sole proprietorship is the most basic form of business organization. The sole proprietor (business owner) is responsible for managing the business operations. They also take all profits and pay all taxes. It is important to note that both the sole proprietor’s personal and business assets will be exposed to potential liability.
A partnership is an association of two or more people having a unified goal of making profits. The partners will serve as the business’s co-owners and can be held accountable for all debts, liabilities, and actions taken by the partnership.
A limited liability company is a business structure that offers its owners ("members") liability protection. The members are not personally responsible for the company’s liabilities and debts. The LLC has become the most common business structure used by new startups and small businesses in the United States in great part due to its flexible structure.
A corporation is a legal entity that provides liability protection to its directors, officers, and shareholders. With limited exceptions, only the corporation will be held responsible for corporate debts, liabilities, or negligence. Corporations have strict tax requirements and expensive administrative costs.
Every business has contract needs, and preparing the necessary contracts is vital. Here are some common contracts to draft for your startup business:
General business contracts specific for your industry
LLC operating agreements
Confidentiality, Non-disclosure, and Non-circumvention agreements
Assignment of Inventions agreements
A knowledgeable and experienced business formation attorney can help draft or review your agreements, help you understand a contract’s contents and wording, and help reduce or prevent potential liability or disputes.
Here are some benefits of having a properly drafted contract:
It clarifies business agreements, relationships, and the rights and responsibilities of all parties
It avoids possible contract disputes, litigation, or conflicts, and mitigates risks and losses
It prevents errors or misinterpretation in both contracts and communications
It establishes dispute resolution techniques, either through arbitration, mediation, or litigation
It increases operational efficiency and generates more revenue for the business
It extends your brand and business values
It protects business assets, intellectual property, and real property
Business owners in the United States are required to file taxes annually. Depending on your business structure or entity, some common Federal, state, and local tax returns to file include:
Sales and use taxes
Federal, state, and local taxes
In order to file your taxes, you must first obtain your federal and state tax ID numbers.
Licenses and permits are required to provide services, sell products, or otherwise operate your business legally. Depending on your industry, you may need to obtain licenses and permits at both the state and federal levels.
The purpose of business insurance is to protect entrepreneurs, business owners, and partners from the potential costs involved with operating a business. You can purchase business liability insurance coverage to protect your business from potential liability exposure.
Business formation in California involves complicated procedures. Choosing a business entity, establishing contracts and legal documentation, filing necessary taxes, and applying for licenses and permits can make the entire process more complex and daunting. Establishing a strong legal footing for your new enterprise requires working with an experienced California business formation attorney for detailed guidance.
At the Law Offices of Jerry J Goldstein, I’m committed to providing knowledgeable and comprehensive legal guidance to clients in business formation-related matters. I work with various business owners and new entrepreneurs to understand their business needs and goals.
As your legal counsel, I will educate you regarding your business structure options, help draft your contracts, and set your business up for success. Using my extensive experience and understanding of the law regarding business formation in California, and other states, if appropriate, I will guide you through every phase involved in forming a new business and help you make key decisions.
If you are starting a new business, contact me at the Law Offices of Jerry J Goldstein today. I can offer you the detailed legal counsel you need to navigate the early development stages of your business. I’m proud to serve clients throughout the Coachella Valley including Palm Desert, California, as well as communities in and around Imperial, Los Angeles, Orange, Riverside, San Bernardino, and San Diego counties, among others.