Americans are entrepreneurs and inventors. The American Dream promises everyone, no matter who they are, the ability to be successful and prosperous in society. One of the most popular methods of capturing the American Dream is by starting one’s own business. Taking a chance, putting in the work, and coming up with a novel idea for a business could result in great success. As a result, it is not hard to find new businesses and or startups anywhere in the country.
California is home to more than four million small businesses, and these enterprises make up 48.5% of the entire workforce in the state. There is plenty of potential for new business owners in California, but starting a business does not always mean success. Not every new business will thrive or even stay open. In San Fransisco, for instance, as high as 50% of the startups that come about will not make it and will go out of business the same year they open their doors.
Top Mistakes For California Business Startups
Knowing the potential hurdles and legal challenges that can arise ahead of time can make running a profitable business a more realistic endeavor. Consider the following:
Choosing the Wrong Legal Form for a Business
One of the primary actions that have to happen in the course of opening a new business is figuring out which of the different business structures works best for operations. A new business owner may choose a limited liability company (LLC), a corporate formation, a sole proprietorship, a general partnership, or an S corporation. Choosing the wrong one could have costly tax implications and make running one’s business incredibly difficult.
Failure to Understand and Abide by Securities Laws
There are security regulations that must be complied with, and failure to do so can lead to fines and penalties.
Not Protecting Intellectual Property
One foundation of a business that makes it competitive and novel could be its intellectual property. As a result, it is imperative that one takes the right steps to protect it.
Not Securing Experienced Legal Counsel
It can be incredibly difficult to keep up with all regulations, rules, and procedures as a new business. Additionally, along the way, legal disputes can also come about and hinder operations. Having strategic and experienced legal counsel on-call can help make business operations run smoother and also help business owners better respond to legal challenges that may come about. Finding a top-quality lawyer that practices business law can be an invaluable tool for start-ups as well as established businesses.
Speak with an Attorney at the Leiva Law Firm Today
The Los Angeles business attorney at the Levia Law Firm has more than two decades of experience practicing business law all throughout the Golden State. If you have questions, need legal counsel, or have another legal matter that you would like assistance with, the Leiva Law Firm can help. Representing individuals, institutions, and businesses, you can call the Leiva Law Firm today at (818) 519-4465 to schedule a free consultation to go over all of your needs.