There are many questions to consider when forming an LLC in San Diego. Are you in the process of a start-up business, and preparing to form a new LLC in Southern California? There are several issues you should consider before approving and filing the associated forms and corporate documents. The primary issues with downloaded forms and forms you find on the internet is that they do not address California laws that provide increased stature to minority interests.
In effect, you may own controlling interest of your company, but someone who only owns 15% (for example) may be in a position to dictate decisions and hold up or veto contracts or transactions unless your corporate documents and operating agreements are modified to address California law, and protect the status of majority owners.
Other critical questions to consider when forming an LLC in San Diego and incorporate into your LLC’s operating agreement include:
- What happens when a member becomes incapacitated or dies?
- How will the value of a member’s share be valued and handled if one of the members goes through a divorce?
- What happens if a member is forced to file personal bankruptcy?
- What is the difference between profits do be distributed, incentives and salaries?
- When may a member withdraw funds from the company?
There are literally more than 100 clauses we review with our clients when developing the operating agreement for an LLC, and each decision provides additional operational flexibility, protection from liability or control over the course and decision making of your LLC.
This is why it is so important to contact experienced and seasoned business attorneys when forming your LLC. The unique services of Janathan L. Allen, APC and Allen Barron also provide insight into accounting and tax issues that could help your LLC to lower tax exposures while providing important insight into critical business decisions. If you are starting a new company you have many questions to consider when forming an LLC in San Diego. We invite you to contact Allen Barron or call today to schedule a free and substantive consultation.