This is the first post in a series on the starting of a business in Santa Ana and elsewhere in Orange County, California. We decided to write on this topic for two reasons. First, California is a hot bed of start-up activity. Second, while beginning one’s own company is exciting, the legal aspects of doing so can also be intimidating. Our goal with this series is to help entrepreneurs understand their options so that they can proceed in a manner that is in their best interests.
We will be addressing a number of topics over our coming posts. Subjects we will look at include:
- The importance of picking the right business structure for your new company
- The tax benefits associated with an “S” Corp
- Making sure that you maintain corporate protections
- Whether or not you need an attorney to start your new company
These are important topics for several reasons. First, choosing the wrong business structure can create liability issues, can make it more difficult to raise capital, and may make it more difficult to bring in new partners. Second, many small businesses pay excess taxes by failing to take an S election. Third, failing to keep up with various filing requirements can result in you losing the corporate protections which shield you from personal liability. Finally, while having an attorney is not required to form a new business entity, there are many reasons why having one is beneficial.
It is important that you contact counsel if you are unsure as to the steps you should be taking in forming your new enterprise. Failing to start up properly can result in your not having necessary licenses as well as a failure to meet other regulatory requirements. Perhaps most important is the fact that if you start off with mistakes having been made then you will have to devote time to fixing them. This takes time away from the most important thing – running your business.
Our Santa Ana business law lawyers assist with forming a new company. Contact us today to schedule an initial consultation. We also service the Orange County areas of Aliso Viejo, Anaheim, Buena Park, Costa Mesa, Dana Point, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, Ladera Ranch, Laguna Beach, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, Newport Beach, Orange, Placentia, Rancho Santa Margarita, San Clemente, San Juan Capistrano, Santa Ana, Tustin, Westminster, and Yorba Linda.