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California Business Formation: Four Issues You Must Address

business-startup.jpgThere a few things that are more exciting than opening your very own company. Not only are there potential financial benefits for you and your family, but you have the potential to create something that will help change your local community for the better. Of course, it also must be noted that starting a new business is a major challenge. Sadly, many business ventures simply do not work out. You need to be prepared for the risks. Fortunately, you can go a long way towards reducing the risks involved with business formation by working with an experienced San Jose business law attorney. Your attorney can help guide you through some of the common traps. To get you started, the following is a list of four things that every prospective business owner must keep in mind.

1. Choose a Legal Form

Like a house, a new business needs a sturdy and reliable foundation. The foundation of a business is its legal form. There are many ways to structure a business and not all of them are appropriate for every situation. You need to carefully review the options that are out there to determine exactly which one best fits the unique needs of your new company. Your choices include:

  • Sole proprietorship;
  • Partnership;
  • Limited liability corporation (LLC);
  • C-corporation; and
  • S-corporation.

2. Get Your Paperwork in Order

Paperwork can be frustrating and tedious. However, if you are starting a new business, it is imperative that you get all necessary paperwork filled out and processed correctly. The last thing you want to deal with is a major financial headache down the road because you made a careless mistake. Generally, it is best to have all of your start-up documents completed or reviewed by a qualified attorney.

3. Access Start-up Capital

Whether your business needs a loan or additional investors, you need to make sure that you have access to adequate start-up capital. There are a lot of expenses involved with starting a new company. In many cases, there will also be unexpected expenses. You need to be fully prepared for any problem that might arise.

4. Obtain All Required Business Licenses

Finally, it is also critical that you ensure that your business is properly licensed. Depending on what sector of the economy you operate in, you may need to obtain multiple different licenses from the state of California. The failure to get licensed will come back to haunt you. Make sure that you get this task done so that you can start focusing on running your company.

Contact Our San Jose Business Law Attorneys Today

Setting up a new business is challenging. Fortunately, you do not need to go through this process alone. The skilled San Jose business law attorneys at Diemer, Whitman & Cardosi, LLP are standing by, ready to help. If you have any questions about business formation in California, please contact our office today to set up a free review of your case. Our firm serves businesses throughout Northern California, including in San Mateo County and Alameda County.



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