San Diego Business Entity Formation Attorney

San Diego Business Entity Formation Lawyer

Part of starting a business is deciding what business entity type you should operate under. Consulting a San Diego business entity formation attorney to assist you in choosing the appropriate legal entity for your business can be a smart option. Bravo Law has worked with clients in the Southern California area for almost two decades, guiding them as they start their new businesses and helping them legally protect their endeavors.

Business Entities Types in California

The internet has made it easier than ever to start a business, providing you with access to potential clients and the tools to offer your products or services. Many aspiring business owners, however, are unaware of the steps required to operate their businesses legally in California. Legally defining your business entity is among the first actions you should take when starting a business.

California offers different types of business entities under which a business can operate, each affording companies unique advantages. The following are the most common types:

• Sole proprietorships: Allows individuals to operate a business as sole owners. If, as a sole proprietor, you are running your business under a different name than your own, you should register a Fictitious Business Name (FBN) Statement with the County of San Diego, California. Sole proprietorships do not afford personal liability protection to business owners.
• Limited Liability Companies (LLCs): One or more individuals may form and run an LLC. A record of the operating agreement should be kept by the business. LLCs afford business owners similar liability protections as a corporation.
• Corporations: Your business is run as a completely separate legal entity from you. You may have shareholders, and your business can continue to exist after you pass away. Personal liability is limited with corporations, but there are certain tax implications to consider when forming one.
• Limited Liability Partnerships: Limited liability partnerships permit two or more partners to form a business, with one member acting as a general partner and the others acting as limited partners. The general partner bears full personal liability, while limited partners are only liable to the extent of their investment.
• General Partnerships: Two or more individuals run a business in partnership, each bearing full personal liability.

Each of these business entity types should be registered with California’s Secretary of State Office, except for sole proprietorships. It is optional for general partnerships. Regardless of the business entity type you choose, you should be aware of several legal responsibilities, including business tax obligations and licensing requirements if required by your industry.

The Role of a San Diego Business Entity Formation Attorney

As a serious business owner who hopes to maximize your business’s longevity, it is important to protect yourself by choosing the correct business entity and filing the appropriate paperwork.

Working with a knowledgeable business attorney to form your entity in California can save you time in the present and potential headaches in the future.

A San Diego business entity formation attorney can:

• Advise you on the ideal entity type for your business, taking into consideration your current and future business plans.
• Walk you through the paperwork needed to form your business entity and register with the State of California and San Diego County when necessary.
• Help you draft adequate documentation for articles of incorporation, operating agreements, and bylaws.
• Provide information on intellectual property law as you establish your business brand.
• Inform you about legal responsibilities as a business owner for the chosen entity, including taxes and licensing requirements at the local, state, and federal levels.

Finding the right corporate attorney to help you form your business entity is critical. In addition to helping you with this initial step, you may also leverage their legal knowledge when drafting employee and client contracts, purchasing and selling corporate real estate, and other legal matters that may arise. They can also assist you with the dissolution of your business if you wish to close it down.

FAQs

Q: Do I Need a Lawyer to Start an LLC in California?

A: You do not need a lawyer to start an LLC, but it is highly recommended. To register your business as a limited liability company, you should submit the necessary forms to California’s Secretary of State office.

If you are unsure if an LLC is the right entity for your business, it can be particularly advantageous to consult a business lawyer before registering it.

Q: How Do Business Owners Create Legal Entities in CA?

A: The steps for business owners to create legal entities in California vary depending on the entity type. For sole proprietorships, you may not need to take any steps unless you are operating under a different name than your legal name. For other business entities, register your business with the Secretary of State’s Office. Some entity types require you to have articles of incorporation or an operating agreement.

Q: What Are the Fees to Form a Business in California?

A: The office of the Secretary of State of California publishes fees for registering all other business entity types on their website. Counties may require businesses to register with them, and may levy a fee for this as well. Depending on your profession, you may also need to pay licensing fees with the appropriate state government agency. There are no fees associated with forming a sole proprietorship unless you file a Fictitious Business Name Statement.

Q: Does San Diego Require a Business License?

A: San Diego does not require a business license. The county does require businesses that operate there to register for a business tax certificate for tax purposes, in addition to any registration at the state level. You can register your business tax certificate online, in person, or by mail.

Contact a San Diego Business Entity Formation Attorney Today

Having a seasoned San Diego business entity formation attorney by your side is an investment in your business’s future. At Bravo Law, we leverage our knowledge of entity formation procedures in California to help you start your business.

Bravo Law offers a dedicated and personalized approach to handling business matters, and we serve clients who speak English and Spanish. Request a consultation today to speak with our legal team about your business legal needs.