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The Business Formation And Planning That Goes Into An LLC

A lot of preparation goes into starting a new company in California. The business formation and planning stages include a choice of entity structure. When the chosen entity is a limited liability company, several steps much be taken before the entity becomes legal and available to do business.

First, and possibly the most fun part of the process, is to choose a name for the company. The only requirement is that the name must include some variation of limited liability company, such as LLC or L.L.C. Once a name is picked, a search needs to be run in order to ensure that no one else has already taken the name and that it is not substantially similar to another company's name.

If the name is available, the name can be registered if necessary. Next, the Articles of Organization need to be drafted, executed and filed with the California Secretary of State. This makes the entity legal. An operating agreement will need to be created and executed as well. Depending on the type of business, permits may need to be acquired before the business can officially open.

The business formation and planning process can be lengthy and complex. Attempting to get through the these steps without a complete understanding of the law and its requirements could result in serious consequences including fines and the loss of the rights and responsibilities that go along with owning a company. Enlisting the advice and assistance of our San Jose business attorneys who are familiar with the laws and procedures that must be followed can help a potential business owner ensure that everything is done properly and remove some of the frustration from starting a business.

Source: FindLaw, " Starting a Limited Liability Company (LLC) Checklist ", Accessed on June 7, 2015

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