Business formation is one of the crucial factors when it comes to the success of a new business startup. Have you teamed up with someone to get a business off the ground during this pandemic? Regardless of what your product or service may be, here are a few things to think about before starting a business partnership.
- Would your business be better off as a corporation? – It may take a little more effort to structure your business as a corporation or an LLC rather than a partnership, but it could be worth it. Sometimes we equate two people going into business together with the word partnership, but that doesn’t automatically make it the ideal business structure for your company.
- Hire a business attorney to draft your documents and contracts – Whether you decide to go with a partnership and need a partnership agreement or you want to create a corporation and need to complete articles of incorporation, a small business attorney can help you to do things right.
- Plan for what will happen if one of you gets COVID-19 – This disease could pull one of you away from the new startup for weeks or even longer. You need to plan ahead for how you will deal with this. If one of you has to do the early grunt work alone, will you feel resentful splitting the profits 50/50 later on?
Help for Your New Business Startup in San Diego
If you are starting your business in the San Diego area, Pokala Law APC wants to be your small business attorney. We specialize in business formation, contracts and agreements, and other areas that are necessary for small business owners. Give us a call today at 1.844.695.1487, or you can request your appointment through our website.