Having a great idea or developing an amazing new product is the first step to starting your own corporation, but it is not always that simple. The decision to start a new business requires a significant amount of careful planning, funding, and paperwork. The specifics of business formation will likely be different on a case-to-case basis, but there are several things that you should take into consideration when planning to form a new business.
Here are five important steps to forming a new business:
- Develop a business plan before taking any official steps. Your business plan should specifically outline how you want your business to run and what your final goal is.
- Once you have a plan in place, start scouting out potential locations. This could mean looking into different neighborhoods where you’d like to have a storefront or pricing spaces.
- Choose what type of entity your business will be. The business plan you developed will be a key tool in making this decision. Knowing what type of entity you will be forming will help determine what paperwork, funding, and other licenses you might need.
- File all of the necessary tax and business documents. Once you have started a business, you will need to ensure that all of your legal and tax information is up to date.
- Finalize any permits or licenses you need to operate your business. The entity type and the services your business offers will determine what licenses and permits are necessary for you to be able to offer goods and services.
Every business will not follow the exact same formation schedule, but it is helpful to understand the basic process that everyone will follow. Developing a basic understanding of entity formation and business formation law, with the assistance of an experienced business attorney, can help you make important decisions.
WHAT ENTITY TYPES ARE RECOGNIZED IN CALIFORNIA?
One of the more difficult decisions that must be made during business formation is determining the type of entity the new business will be. In the state of California, there are six business structures you can choose from.
- Limited Liability Company
- Limited Liability Partnership
- General Partnership
- Limited Partnership
- Sole Proprietorship
Each business structure requires specific forms and permits to keep the business running. Whether you are looking to start and maintain a business on your own or hoping to develop a brand that could outlive you, there is a business structure that can meet your needs.
The purpose of each of these various business structures is ultimately to protect the business owner. Making sure that your business is properly registered, has correct tax information, and can support employees can be difficult, but it is essential. One of the major things a business owner may want to protect is their intellectual property.
WHAT IS INTELLECTUAL PROPERTY?
Intellectual property is any type of asset that was created from someone’s mind. These creations are often not physical but rather artistic. Some examples of intellectual property may be designs, engineering systems, company information, and more. The recognition of the importance of intellectual property has become more prominent in recent years. Many of the assets that should be protected by intellectual property law, like music and various types of writing, are made for public consumption. This can make it more difficult to get the correct protection, but there are several ways you can protect your intellectual property.
HOW CAN YOU PROTECT INTELLECTUAL PROPERTY?
If you are starting a new business, you may find yourself needing to protect your intellectual property. There are several ways that you can protect your intellectual property in California. Some of the most common protections are:
- Copyrights provide a creator with full rights over their own creative work. This often includes books, movies, music, and more.
- Patents are similar to copyrights, but they apply to physical inventions rather than artistic ideas.
- Trademarks are visual or physical signs that set one business apart from a similar business in the industry. A trademark could be represented by a symbol or a phrase that distinguishes the business from others.
- Trade secrets are confidential information that pertains to the inner workings of the company. These secrets could include designs, business plans, or recipes.
Whether you are looking to develop a new secret recipe or provide the hottest new product, protecting your intellectual property is essential. Working with a trusted and experienced business lawyer can give you peace of mind as you get your new business established.
WHAT ROLE DOES AN ATTORNEY PLAY IN BUSINESS FORMATION?
The knowledge and guidance of a business lawyer can make the process of starting your own business much easier. They will walk you through each type of business structure to ensure that you are following the plan that will benefit your business the most. Good legal representation can also ensure that you receive all of the profits and recognition that result from the use of your intellectual property. It is important that, as a new business owner, you are aware of the costs of representation.
HOW MUCH DO LOS ANGELES BUSINESS LAWYERS COST?
The cost of working with an attorney may vary, depending on their experience and other factors. The average hourly rate for a business attorney in California is approximately $341/hr. An experienced attorney can guide you through the entire process of starting a new business, so this cost is often well worth it. If you want to start your own business, contact Blake & Ayaz for a consultation today.