Are you forming a new company in San Diego? Which entity is best for your new venture? The four basic options are an LLC, S Corporation, C Corporation and a Professional Corporation (PC). The selection of the legal entity for a new business is one of the first significant challenges an entrepreneur may face. The choice of the entity should be entirely driven by the type of business you intend to conduct, and your exit strategy. “My exit strategy?” Yes, the end-game for your company will have a lot to do with the selection of the best entity for your new company.
At Allen Barron, we have a thorough conversation with all new business owners that covers a broad range of topics including:
- how many people will be involved in the ownership of the new company?
- how will voting rights and control be allocated?
- how will profits be divided?
- What is the geographical nature of the business (local, regional, national, international)?
- Where do you see the company in 3 years, 5 years, at the point of sale?
The nature of the business you conduct, and the plan for your company’s future will inform the entity selection process. In some cases the options are quite clear, such as those with a professional license in which case a Professional Corporation or PC may be an obvious choice. The differences between an LLC, an S Corporation and a C Corporation can be quite confusing to many entrepreneurs forming a new company in San Diego.
Our attorneys will guide you through the process, and ask questions that help to set up your new business, while providing a road map for the future. Our new business start-up package anticipates almost all potential issues the business may face including how new investment will be brought into the company, and what will happen in the event one of the owners faces a personal crisis such as divorce, bankruptcy, a disabling injury or death.
You are pouring all of your hard work, time, money and knowledge into forming a new company in San Diego. We will help you to get your business off to a great start and provide the greatest opportunity for survival and growth. We invite you to call for a free consultation at 866-631-3470.
