Incorporation Assistance: Reasons to Hire an Experienced Corporate Lawyer to Help
We here at San Diego Corporate Law emphasize the need to form a corporate entity such as a corporation or a limited liability company to run your business. There are many reasons why this is important. It is just as important to have the assistance of a good corporate lawyer to help you incorporate. Here are a few of those reasons.
Saving You the Hassle While You are Busy Running Your Business
You are busy starting your business, marketing, finding loyal customers. Your focus is and should be on ensuring that your business succeeds. We here at San Diego Corporate Law have seen how having an experience corporate attorney handle your formation, compared to an online service, can make a huge difference not only in the quality of work produced, but also in your own comfort and understanding of the entity you will be using to run your business. Having your trusted corporate lawyer form your corporate entity leaves you free to do what you do best and feeling confident in understanding the needs of your new business entity.
Doing it Right the First Time and Avoiding Legal Pitfalls
Your experienced corporate lawyer has formed hundreds of California corporations, LLCs, and other corporate entities. In other words, your lawyer knows how to get the task done and how to get it done right the first time. In other aspects of starting and running your business, you hire competent team members. You need to do the same with respect to the legal needs of your business.
Post-Formation Assistance: Ownership Meetings, Board of Directors, and Bylaws
After your corporation is formed, there are still many follow-up steps such as the first meeting of the board of directors, issuing stock, and adopting bylaws/operating agreement. All California corporations must have a board of directors appointed. LLCs must appoint managing members or retain non-member managers. The initial and annual ownership meetings can be done several different ways, but must be done legally and correctly. Once the Board of Directors or Managers are elected/appointed, then the original bylaws or operating agreement must be adopted/ratified. A good corporate lawyer can ensure that all of these steps are taken correctly so that they are legally binding and effective.
With respect to the bylaws and operating agreements, California law allows certain variations from standard examples. For example, the law allows the voting requirements to be adjusted. At the same time, the statutes also prohibit certain variations in the bylaws/operating agreements (such as absolving directors/managers of various legal duties). As with the other aspects of forming a corporate entity, a good corporate lawyer can help create governing documents that accomplish what you need accomplished while avoiding legal pitfalls and prohibitions.
Secretary of State Information Statement Filing and Annual Maintenance
Like any good machinery, after being formed, a corporation or an LLC must be properly maintained. For example, shortly after formation, the California Secretary of State requires the filing of a Statement of Information. Then, every year, an annual report (and fees) are due. Further, the corporation or LLC must file tax returns and forms with the California Franchise Tax Board. There are also forms to file and record with the county, and possibly other governing bodies, if you are using a Fictitious Business Name (also known as a “DBA”). Again, you are busy making your business a success; let a good corporate lawyer assist you.
Contact San Diego Corporate Law Today
If you are starting a new business or seeking to expand or buy a business, contact attorney Michael Leonard, Esq., of San Diego Corporate Law. Mr. Leonard provides a full panoply of legal services for businesses including formation of corporate entities of all types. Mr. Leonard can be reached at (858) 483-9200 or via email. Mr. Leonard proudly serves business owners and residents in San Diego and in the surrounding communities.