As a business law attorney in San Diego, people come to me quite often for advice about how to start a company. Starting a company is an exciting endeavor, but there are a number of things you need to do from a legal perspective to get it off the ground.
Here are the top legal issues you face before starting a company. Some of them are rather critical and may require further guidance from a corporate lawyer.
1. Identify your legal entity.
There are a number of entities out there, including:
- “S” corporations
- “C” corporations
- limited liability partnerships
- general partnerships
The most common entities general entrepreneurs focus on are “S” corporations, “C” corporations and limited liability companies (LLC) as they provide the best mix of protection against liability and a known body of law around how they function.