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Small Business Starter Pack

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Small Business Starter Pack

You’re making the plunge! Congratulations. Below is a brief list of the documents and issues you should consider as you start your business:

Incorporation

Incorporation is the process by which you establish a business entity. You can incorporate a broad range of entities:

  • Limited partnerships,
  • Limited liability partnerships,
  • Limited liability companies,/li>
  • Corporations
  • Public benefit coprorations
  • Mutual benefit corporations,
  • Religious corporations,
  • And more!

You incorporate your business with the Secretary of State. You can incorporate your business in any state, but, in most circumstances, you should incorporate it in the state in which you will conduct the majority of your business operations. For most small businesses, this is the state in which you live.

Business Formalities and Piercing the Corporate Veil

The primary benefit of incorporating a business entity is that it provides limited liability for business debts for your personal assets. Therefore, if you a sued for an issue related to your business, you can avoid personal liability because it is a business debt.
However, it is possible for a lawyer to piece through your limited liability protection if you don’t observe corporate formalities. For example, if you commingle personal and business accounts. If you use the business credit card to pay for personal expenses. If you don’t hold regular meetings with the other shareholders or members (assuming you have partners).
Business formalities refer to the separation of the business from your personal life. For example, getting an EIN, opening business bank accounts, applying for a business credit card/line of credit, separate email, mailbox, business services, etc. It also refers to following best practices for making and recording business decisions.
Businesses are artificial entities. They exist because of actions taken by individuals. Therefore, the business only exists if its actions are recorded in the company records. This refers to shareholder and board meetings, minutes, bylaws, and resolutions for corporations. This refers to member meetings, minutes, operating agreements, and resolutions for LLCs. One of the best tools to ensure that your personal assets aren’t subject to business risk is by following best practices by ensuring that you create, track, and maintain corporate records.

My firm offers a broad range of template and customizable operating agreements, bylaws, resolutions, minutes, consents, and more to ensure that you can easily plug and play as needed.

Contact a trusted California attorney today

At the Law Office of Bryson Woulfe, I assist non-profits in a variety of ways. Call my San Diego office today at 619-607-3417 or contact me online to schedule your consultation.

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