San Diego Business Attorneys

Southern California Business Law Frequently Asked Questions

Although a lawyer at Legion Counsel can answer any questions you have, we have also included some frequently asked questions regarding Southern California business law. We hope you find them helpful.

What form of business entity should I use? Whether you decide to choose to create your business as a sole partnership, corporation, LLC (limited liability company), or partnership will depend upon your unique situation as well as your goals. You can consult with a business attorney to discuss your options and determine which route would be best for you to take.

What is an LLC, and what are the benefits? LLC stands for “limited liability company.” In essence, it is a combination of a corporation and a partnership – with the limited liability a corporation provides and the tax benefits of a partnership. LLC businesses are becoming more commonplace throughout San Diego and California as a whole.

What are the risks involved in running a business? In running any type of business, whether it is a corporation or not, you may have issues with:

• Non-compliance with licensing and other regulations and requirements
• Taxes
• Violation of certain laws regulating your business
• Labor and employment laws and lawsuits, such as sexual harassment or discrimination suits

When am I personally liable for problems with my business? That will depend upon the type of business you have. If your business is a sole proprietorship, you will likely be held liable for any debts or other issues your company has. Your personal property may be sought out by creditors seeking payment for company-related issues. There are also certain instances when your personal actions, if particularly negligent or harmful, may hold you personally liable in a lawsuit brought against your company, even if it is incorporated.

Should I incorporate my business? That will depend upon your circumstances and your plans for the future. Incorporation provides many benefits, one of which is the protection from most instances of personal liability. However, incorporation is complex and involves many different legal issues, which is why it is helpful to work with a skilled business lawyer.

Contact a skilled San Diego business lawyer through Legion Counsel today!