You have great dreams for you and your family. One of the most vivid and enduring desires is to turn your collective talents and experience into a business. The formation of a family-run business entity will make you masters of your own destiny. You will get to establish standards and cultivate a working environment that is consistent with your own values.
If you have the vision, the people, and the determination to succeed, then you should start your journey toward family entrepreneurship. Business Entity Formation is a process. It is a process that is best informed and guided by sound legal advice. A Business Entity Lawyer Los Angeles can help you get your enterprise off the ground.
Here are 5 issues and tasks that a lawyer can help you with:
1. Legal liability
You may have good reason to believe that your company will succeed. However, you must also plan for potential failure. If your business fails, it need not lead to the financial ruin of your family. A lawyer can help you limit the liability for potential losses. This will shield you against personal responsibility for all losses suffered by your company.
2. Raising capital
If you are like most entrepreneurs, you will need to raise money to get your business off the ground. There are many ways to do this, but one of the best ways is to take on a partner who already has the cash. Your lawyer can help define the terms of the partnership so that you do not unwittingly surrender control to the other person.
One of the things to be decided in the formation of a business is the management of it. Raising capital and securing a percentage of the profits does not entail the right to manage the company. Your lawyer will help clarify who controls the business. There are three main types of management models: sole proprietorship, general partnership, and corporation. You will need to figure out which of these works best for you and your partners or investors.
4. Future plans
You will also need to work out your future plans for this business. You should decide early on whether you want to grow it into an ever-expanding operation that you can pass down to future generations. Or, whether you and your family want to grow the company to the point at which it is most valuable and then sell it. This all needs to be worked out in legal language so that you are not prevented from pursuing either option in the future.
5. License and permits
You will need the proper licenses and permits to start trading. You may also need to undergo inspections and certifications before you can open to the public. You must be sure about all such requirements in advance. The last thing you want is to be in breach of the law. This can cost you money in fines and may even lead to legal action against you. It is best to start your enterprise on the right side of the law.