The East Bay is a great place to start a business, especially in the tech or entertainment industry. Part of the excitement of startups is that you and your partners are building something from scratch. For many of your dealings in the early phase of your business, you can let innovation and intuition be your guide. But when it comes to entity formation, that is, legally establishing your business, you need the help of an experienced lawyer. A limited liability company (LLC) is a popular type of entity for startups, but there is more to it than just checking the LLC box on an online formation application form. Your Pleasanton lawyer can help you navigate the process of LLC formation and make sure that you do it correctly. Forming your LLC correctly from the start can save you tens of thousands of dollars and eliminate the major mistakes that will destroy your start-up.
Why Choose LLC?
Creative and innovative businesses in Livermore like the LLC entity type because it is very flexible and if properly structured will protect them against heavy financial losses if the company goes out of business. The “limited liability” part of the entity’s name means that if properly structured the company cannot cause you to lose more than you invested in it. With some other entity types, you can be legally required to use your personal assets to pay the company’s debts if it goes out of business or to pay settlements or fines if the company is held liable in a lawsuit.
Factors to Consider When Establishing an LLC
These are some things to keep in mind when forming an LLC. Your Hayward lawyer can help you make decisions about these matters.
- Naming your LLC – You must make sure that the name you plan to call your business is not already taken. Federal and California trademark and trade name laws must be considered. LLCs must have a suffix such as “LLC” or Ltd.” attached to their names.
- Members in the LLC- Most of the time, the members, or owners, in an LLC are individuals, but they can also be already existing businesses. You want to make sure that you use the manager managed form of LLC to gain all the benefits of the LLC entity.
- In California, banks, trusts, and companies that provide insurance cannot be LLCs. If your business is in one of those fields, your Fremont lawyer can help you choose a different entity type.
Why Hire an Experienced Lawyer?
When it comes to business entity formations, seemingly minor decisions or mistakes can have a big impact on the success or failure of your business. It is much more complicated than filing out an on-line form for forming an entity. Your business lawyer will be able to see the implications of the decisions you make at the formation stage and make sure you make the correct decisions for your business. Contact JGPC Business & Corporate Law at (925)463-9600 for help establishing your LLC or other business entity.