On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Friday, January 22, 2016.
Starting up a new business in California is an exciting time for any entrepreneur. It is not uncommon for excitement about potential success to prevent new business owners from considering the legal aspects of a business startup. One of the first decisions to make involves the type of business entity that will be formed. Will it be a sole proprietorship or a partnership? There are advantages and disadvantages presented by both.
Choosing a business partner is a process that requires careful consideration. It has been suggested that disputes between business partners are one of the most regularly cited reasons for new businesses to fall apart. A partner in a well-known and successful consumer company said business partners must be able to work together on multiple levels of business, and mutual trust is vital. He also said he would not recommend starting a business with someone who you would not trust to access your bank account.
In any successful business partnership, there will be the need to have someone to consult when legal issues arise. When important decisions have to be made that will not only impact on the new business but also on the business’s long-term success, the advice and guidance of an experienced business law attorney can be beneficial. A lawyer who is prepared to become familiar with the business and its operations can provide valuable input in any circumstances.
A California attorney can provide guidance and support for the idea of a business startup and all the choices that need to be made early in the process through the ultimate decisions concerning the corporate form that will be best for the company. Along with other legal matters, a lawyer will explain responsibilities regarding personal liability and other factors. such as tax considerations. Knowing that the legal side of the business is properly covered by an experienced attorney can leave a sole proprietor or business partners to look after the daily operations that will provide the profits.
Source: entrepreneur.com, “Before Starting a Company With a Partner, Ask Yourself This Question“, Laura Entis, Jan. 20, 2016