Temecula Business Formation Attorneys

Temecula Business Formation Lawyers

Starting your own business is an exciting adventure, even though there can be difficult and stressful moments along the way. With so many goals to reach, tasks to complete, and problems to solve, it can be beneficial to have an attorney who is familiar with business laws and practices walking through the process with you. Lockhart Law Firm has Temecula business formation attorneys who are ready to work with you toward success.

Elements of Starting a Business

There are various elements involved in the process of starting your own business. Some matters you will need to consider and make decisions on include entity formation, taxing structures, insurance coverage, investment strategies, and more. An experienced lawyer can counsel you on how to take profitable steps in each of these areas.

Once you have officially started your business, you can continue to get legal advice about beneficial business practices and strategies to maintain a healthy business model. Your lawyer can also aid in any legal or financial paperwork that needs to be drafted or completed.

Types of Business Structures in California

There are a variety of business structures that you can choose from in California. These include:

• A Corporation. A corporation is unique from other businesses because it operates and exists separately from the owner. Within a corporation, stocks and bonds can be sold in order to contribute to the company once the owner has died or ceased being involved. Corporations provide liability protection for owners by existing separately.
• A Limited Liability Company (LLC). Similar to corporations, LLCs provide liability protection but also offer flexibility regarding management and ownership.
• A Limited Partnership (LP). An LP contains limited liability for some partners. There is one general partner, and there may be additional partners involved.
• A General Partnership (GP). In general partnerships, there must be at least two people involved in the business. They each retain an equal amount of liability.
• A Limited Liability Partnership (LLP). LLPs include businesses that offer services such as public accountancy, legal services, architecture, engineering, land surveying, and others. LLPs must have a certain amount of insurance because of the services they offer.

How a Lawyer Can Help

Because there are so many elements involved in starting a business, there are a plethora of ways in which a lawyer can be of assistance. Some of these include:

• Advising you on which business structure is appropriate for your goals. One of the first steps you will need to take when planning the foundation of a business is the structure of everything. Much of this will depend on the specific goals of your business as well as future endeavors you may want to take on.
• Drafting and completing legal documents. Many of the initial steps of starting a business involve signing and drafting a significant amount of paperwork. Many documents can be lengthy and contain legal jargon that may be difficult to understand. A lawyer who is familiar with these processes and terminologies can help you manage such documents with ease and confidence.
• Securing necessary permits and licenses. Depending on the type of business you are starting, you may need various permits and licenses to operate legally. A business lawyer will be aware of these essential components and can ensure that you obtain them at the right time.
• Helping you understand and navigate employment law. In California, there are various laws that determine how businesses must treat their employees. Employee etiquette is important for maintaining a good reputation within your business environment, which is why having a lawyer’s help can be of great benefit.
• Setting up your tax plans. As a business, you will be responsible for certain tax obligations that you were not responsible for as an individual. There are many regulations regarding taxation, which, if misunderstood, can cause significant difficulties. A business lawyer can advise you on how to navigate all aspects of business taxes.

FAQs

Q: What Are the Business Structure Options in California?

A: Some of the specific structures you may choose from in California include sole proprietorship, general partnership, limited partnership, limited liability company, corporation, and cooperative. Each of these operates uniquely and has pros and cons. The business structure you choose will impact many aspects of your business, such as liability and taxes.

While doing your own research can be helpful, having an experienced business lawyer walk you through the legal aspects of each structure can be invaluable.

Q:  What Is a Nonprofit Corporation?

A: Nonprofit corporations are created with the goals of scientific, religious, literary, educational, or charitable advancements. These types of businesses are not required to pay state or federal income taxes on income they receive through their services or events. There are specific regulations surrounding these companies, especially in regard to spending, taxes, and other financial aspects. Nonprofits are also sometimes referred to as 501(c)(3) corporations.

Q: What Is the Most Simple Business Structure?

A: One of the notably simple business structures in California is the sole proprietorship structure. These types of businesses are owned by one person, which can help eliminate any conflict or competition between owners or managers. They are also not considered legal entities, making it easier to do taxes since they’re done the same way you do personal taxes. The owner also receives all profits directly, which can be a significant benefit for many owners.

Q: Do I Have to Hire a Lawyer to Start a Business?

A: While it may not be required to hire an attorney when starting a business, it can be extremely helpful to do so. There are many aspects of business law that can be confusing to someone without much experience in the intricacies of the law. Hiring a lawyer can increase your confidence and comfort in your new endeavor.

Work With Lockhart Law Firm

If you are thinking about starting your own business in Temecula, one of the first steps you should take is seeking legal counsel. At Lockhart Law Firm, we have extensive experience helping individuals and groups start their business adventures. Reach out today to learn more about how we can help.