Business Formation

Every year, thousands of people forge their paths toward building their own businesses. These courageous, intelligent and ambitious individuals seek to carve out their piece of the American Dream. However, many of them start on their journey toward financial independence without the proper guidance they need to avoid serious legal issues. The attorneys at the Arguello Law Firm can offer entrepreneurs the advice they need when forming their new ventures.

Business Name Registration
Most businesses choose to operate under the name of a business entity, rather than under the names of the owners. Business owners must register their business entity’s name with state and local agencies. The owners can request a search of the state’s business records to determine if their chosen business name is available for registration. When the owners learn that their chosen name is available, they can file a “doing business as” (DBA) form to accept payments, advertise and create business telephone listings under that name.

Business Structure
The selection of an ownership structure for a new business is a vital component in determining its legal and taxable status. A sole proprietorship consists of a single owner/operator who may or may not have employees. A partnership consists of two or more owner/operators who decide on business matters. A limited liability company (LLC) is a legal entity that insulates the owner/operators from personal legal liabilities incurred by the business’s actions.

Incorporation
Many companies take advantage of incorporation when forming their business structures. Companies that incorporate can gain tax advantages and liability protection. Corporations also attract investors more readily than incorporated entities, as they must adhere to strict financial reporting requirements. Corporations can offer ownership shares for sale, either through private investors or through public stock offerings, to raise capital for their operations.

Licenses and Permits
Most types of businesses must apply for licenses and permits to operate in their respective jurisdictions. Businesses that serve alcohol must obtain a liquor license and hire servers that have completed the state’s certification programs, while restaurants must receive permits from the local health department that certify that they have taken the necessary precautions to prevent food contamination. The fees and paperwork for these permits are a costly but vital component of operating these businesses.

Insurance
Businesses should carry insurance to protect themselves from liability lawsuits. The insurance liability requirements for businesses can range from property damage and workman’s compensation to inventory protection and customer injuries. Without insurance, businesses can face devastating lawsuits that can bankrupt them and destroy their reputations. Business owners should consult with a knowledgeable business formation attorney to determine the types and extent of coverage they need.

The attorneys at the Arguello Law Firm can offer the experience and advice that many new business owners need during the business formation process. For more information, contact us today at 1-888-252-4668. A friendly and courteous member of our intake team will promptly gather your information and connect you with the attorney that is most appropriate for your specific case. You can also fill out the confidential “Free Case Evaluation” form found at the top of this page.