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Business legal services in Silicon Valley

Business Planning Tips for California Entrepreneurs

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Thursday, July 14, 2016.

Plunging ahead to launch a new business in California may be a great lifetime adventure. Prospective entrepreneurs often face many challenges during business planning stages, however. In such circumstances, it is advisable to seek immediate and experienced guidance to increase one’s chances of achieving business success.

New business owners must make all types of decisions, ranging from whether they will create and sell hard-copy products or provide a service to the public. Once a business type is chosen, it is common for budding entrepreneurs to choose names for their new companies. Those pursuing business planning options are advised to seek clarification on trademark and copyright laws before staking claim to a specific title or name.

Whether one will function as a sole proprietor or enter a partnership is another crucial choice that may affect one’s business future. There are many valid reasons for choosing either style. An experienced attorney would be able to offer counsel as to the benefits and potential downfalls of each, then help determine what may be best suited to one’s particular interests.

Many California business owners choose to register trademarks. Also, some states require a new business owner to file a DBA (Doing Business As) to conduct business under a certain name or brand, especially if business and company names differ. Obstacles and challenges may arise when making decisions about company basics and preparing to launch start-ups. By asking a business and commercial law attorney for help, entrepreneurs may avoid delays, and move forward toward accomplishing their bottom line goals.

Source: rocketlawyer.com, “How to Start a Business“, Accessed on July 13, 2016

Business Formation & Planning, business tips, entrepreneurs, starting a business in california

Business legal services in Silicon Valley

Common – And Critical – Errors That Can Sink A Business

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, May 11, 2016.

Eager to follow their dream and make a profit off a great idea or their passion, many business owners make critical mistakes during the formation period. Some mistakes cause problems that can be corrected later – but far too many cause problems that can stunt or sink a business. It is critical that you have skilled legal guidance on your side as you establish a business to avoid common pitfalls and errors.

Here are a few of the most common small business formation mistakes:

Assuming they need an LLC – Most people have heard of an LLC and therefore automatically assume that it is the entity type they need legally protect their business. There are a broad range of types of business entities, however, and each accomplishes something unique. Sometimes an LLC is not the correct fit for a business and creating an LLC could leave the business – and its owners – exposed to risk. It could also severely inhibit growth of the company later down the road.

Assuming template forms and contracts are good enough – Many people simply download boiler-plate agreements and contracts online and then fill in the blanks. In a lot of cases, business owners do not even read these agreements and have no idea what kind of exposure they leave the business open to. Work with an attorney to create contracts and agreements that protect your company and meet its growth needs.

Assuming they can have an “understanding” with partners and shareholders – Many people go into business with friends, family and colleagues with whom they already have a great relationship. They neglect to write agreements to formalize the business relationship, including obligations, percentage ownership and entitlements. You can count on disputes arising at some point in the life of the business. If those disputes are severe enough, your lack of an agreement could cost you or your partner an entire ownership share of the company and all the hard work and resources that have been invested.

Assuming no one will steal their idea – The greatest asset a small business has is its idea. Whether that is the concept to sell purple popsicles from a food truck to the next great innovation in technology, someone will try to duplicate what you are doing. It is critical that you work with an intellectual property attorney to develop safeguards, patents, licenses and trademarks that will protect your idea and the ability of your company to extract return from that idea.

The Law Office of Lynnette Ariathurai partners with business owners and entrepreneurs to build a solid legal foundation that will facilitate growth, both in the early stages and throughout the life of the company. Investing the time into doing it right up front will pay in dividends later.

Business Formation & Planning, Contracts, entrepreneurs, managing partners, trade secrets