Choosing the right legal entity for your new San Diego-area business
A Southern Californian opening a new business must choose the legal entity logical for its goals.
Projections are in for 2015 San Diego economic conditions, suggesting fertile ground for new business creation. Southern Californians contemplating starting a business should consider the positive projections of the Los Angeles County Economic Development Corporation (“LAEDC”).
The LAEDC, a nonprofit organization highly respected for its economic forecasting, recently produced its 2015 Long Range Economic Forecast for Southern California in conjunction with the Kyser Center for Economic Research. For San Diego County, LAEDC forecasts for 2015 include:
- Unemployment will fall to 5.7 percent, down from 10.6 percent in 2010.
- The industry sectors that look especially promising include construction, professional scientific and technical services, and leisure and hospitality.
- Consumer and visitor spending will increase.
If you are considering opening a new San Diego-area business in 2015, your first step should be to locate an experienced business attorney to provide legal advice and guidance throughout the process. A new business venture brings many important decisions to be made about your goals and how to reach them. Legal counsel will educate you about the legal issues you may face as you proceed with your new business.
The business lawyers at the law firm of Simpson Delmore Greene LLP, with offices in downtown San Diego , have years of experience representing new businesses of all sizes and types through the startup phase and beyond.
An initial decision you will need to make is the choice of which legal entity will be the vehicle for moving your business forward. California state law controls which entities are available to you and regulates the details of the attributes, limitations and powers of each.
Some of the most important issues for entrepreneurs include: who holds the power to make management and control decisions; whether the owners could be personally liable for business debts and obligations; and what tax ramifications will arise.
Some of the entity choices in California include: Sole proprietorships, Partnerships, Corporations, and Limited Liability Companies.
You should speak to a business attorney for information and advice about how to approach the decision in light of your particular business and personal goals.
Keywords: California, new business, legal entity, San Diego, LAEDC, attorney, startup, entrepreneur, liability, tax, sole proprietorship, partnership, corporation, limited liability company