Starting your small business is definitely an exciting and fulfilling experience. However, many young entrepreneurs jump in head first without getting familiarized with all the legal aspects of what starting a business venture entails. By doing so, they set themselves and their business up for unnecessary legal issues and pitfalls down the road. If you’re thinking of starting a business in California, there are a few important legal aspects you should consider before committing yourself a situation.
Choosing The Correct Entity For Your Business
The first thing you must decide is which entity you will be doing business as – a sole proprietor, partnership or corporation? Each choice has its own pros and cons. Being a sole proprietor may seem like the best option because you’re working for yourself and all profits are yours – but so are the legal woes. Having partners is a great way to share the burden of having a business, but conflicts of interests do tend to occur that may jeopardize the situation. Incorporating provides you with a sort of shield against obligations and debts, but is it worth all the additional legal hassle and costs? A Small Business Attorney can help you make the right decision right from the start.
Formulating A Business Plan
In order for a business to be successful, it must operate under a clearly-defined protocol with a clear vision in mind. Deciding on how to run your business as you go along is not the proper way to go. Marketing, budgeting, product information and staffing issues must all be lined out ahead of time by someone with the know-how to do it effectively. Also, you should know that having a proper business plan is one of the top requirements from lenders and financial institutions when it comes to getting a loan.
Financing Your Business
Today’s business owners have a variety of financing options available to them. Like everything else, there are pros and cons associated with each choice. Two things are constant, regardless of the source: It costs money to start a business and you’ll need a continuous flow of it to keep the business afloat. Let this, in part, be your guide for financing your business. Taking out too many loans from too many sources is never a good idea so your first financing choice should be a wise one to avoid the related pitfalls of bankruptcy and credit issues.
Seeking Legal Counsel from Small Business Attorneys
History has showed us that even the best-laid business plans can fail, and one of the most common reasons why small businesses fail is that the owners did not seek the pre-planning and legal advice of someone qualified to give it. Don’t let this happen to you. If you’re considering starting a business, seek the counsel and advice of experienced California Small Business Attorneys such as McFarlin LLP. We can guide you every step of the way to ensure that you start off your small business on the right foot and avoid any unnecessary legal pitfall. Give us a call at 1-888-728-0044 for a free initial consultation.