San Jose Business Lawyers Blog

Articles Posted in Start-Ups & Financing

Among people who are actively involved in business, Delaware is known as the state that is perhaps the most corporation-friendly in the United States. According to the state of Delaware, it has been “preeminent” as a place for businesses to incorporate since the early part of the 20th century, and more than half of all Fortune 500 companies are incorporated in Delaware. Clearly, there must be certain benefits of incorporating in Delaware that have been attracting businesses for more than one hundred years. Some of the most commonly cited benefits of incorporating your business in Delaware are detailed below.

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Flexible laws – The Delaware General Corporation Law provides corporations and shareholders tremendous flexibility in the way a corporation operates. In fact, an official publication distributed by the Delaware Department of State indicates that its corporate law has been written with a “bias against regulation.” Continue Reading

A B Corporation, also called a B Corp, Benefit Corp, or B Corp Certification, is a third-party designation for a socially responsible business that assures the public it has passed rigorous standards of environmental and social performance, as well as a commitment to fostering open communication and transparency. The Certifications are issued to for-profit companies by B Lab, a U.S. based non-profit.

Currently, there are over 1,000 Certified B Corps covering more than 60 industries. Becoming a B Corporation can be beneficial to your bottom line when considering business entrepreneurship. Here are some things to know about achieving B Corp Certification for your company.
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Provisions of B Corporations
Making sure you are in legal compliance is one of the first steps to starting a business. B Corps have provisions attached to certification such as establishing a public cause, transparency, and proof of continuing benefit to society and the environment. Continue Reading

Are you thinking about starting a business? The success or failure of your business venture depends on your ability to plan ahead, take action, and respond to what happens after your idea becomes a company. Here are 4 actions to consider on your path to business success.
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Building a Successful Business: 4 Steps
1. Clearly Define Your Vision and Goals

Business success comes through hard work and dedication. Having a clear vision and measurable goals is the first step. Write down your plans for the future of your company, both short term and long term. It can also be helpful to scout out your competition to see if your plans will hold up in the market. This is known as market research, and it will allow you to identify whether a similar product or idea is already out on the market. Continue Reading

Crowdfunding is a great way for individuals and companies to fund new businesses, projects, and products through the Internet. With the advent of crowdfunding sites like Kickstarter and Indiegogo, it is easier than ever to fund your new business venture with the help of online supporters.

If you’ve heard anything about crowdsourcing money online as a source of achieving your startup dreams, you may have wondered what some of the legal consequences may be that are associated with taking “donations” from the public. Here are 3 potential legal issues that arise from using crowdfunding to support your business.

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Crowdfunding Sites: 3 Potential Legal Issues

1. Choose the Right Structure for Your Business

When you post your project on a crowdfunding website, if you haven’t formed a business already, you are now a sole proprietor by default. This type of business structure comes with its own benefits, but keep in mind that this might not be the type of business entity that’s best for you. There may be another business entity that is better suited for your business needs. Consider forming your entity with the help of a lawyer before posting your project to avoid being locked into the wrong type of business structure. Continue Reading

In any business venture, compliance with applicable laws and regulations is essential. These vary significantly depending on your industry and the jurisdiction in which you operate. In some cases, you may be subject to licensing and permitting requirements on the federal, state, and municipal levels. While many entrepreneurs are understandably excited to begin operations, failure to obtain the required licenses or permits can have serious consequences. In some cases, noncompliance with the applicable business regulations in your jurisdiction could even result in criminal charges or significant fines, potentially putting you out of business.

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Regulations regarding business licenses and permits are often voluminous and difficult for even sophisticated business people to understand. Anyone considering starting or expanding a business in California should contact an experienced attorney to discuss their circumstances.

In the meantime, here is some information about some of the more commonly required business permits and licenses. Continue Reading

Breaking away from the rest and forming your own business is a dream for many people. Business entrepreneurship can be a risky but rewarding venture, and it’s possible to achieve great success in your new company. Although running a business takes a lot of hard work and has challenges, you can reach a high level of success. Here are four keys to achieving great things as a business owner, as well as some advice from successful entrepreneurs.

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Business Entrepreneurship: 4 Keys to Achieving Success

1. Hire a Lawyer

“Surround yourself with great mentors.”-Thalej Vasishta, CEO, Immigration Lawyer

Sound advice and a strong team to lean on are essential for entrepreneurs. One of the first things you should do when starting your company is hire a lawyer. Choosing a business entity and licensing can be intricate, so have all paperwork looked over before making big decisions. A good business lawyer will be able to guide you through the whole process and assist you in protecting your intellectual property rights along the way. Continue Reading

Among the most important decisions a business owner or entrepreneur can make is determining what business entity best suits their needs. This decision can affect how much you pay in taxes, the amount of paperwork that you will need to do, your own personal liability, and your ability to raise capital by issuing stock. Additionally, some business formations require certain formalities in order to be in compliance with state and federal law.

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Of course, every business is different, and what may be an appropriate business entity for one venture may be completely inappropriate for another. Business ventures that anticipate rapid growth or are formed with the intention of being acquired by another company may choose an entity type that may be unnecessarily onerous at startup but allow growth and compliance with federal securities laws, preempting the need for a potentially costly reorganization down the road. For these and other reasons, it is best for anyone considering forming a business entity to discuss their goals and options with an experienced Silicon Valley business lawyer before filing any paperwork with the state.

In the meantime, here is some basic information regarding the some of the most commonly used business formations:

Sole Proprietorships – A sole proprietorship is perhaps the most common type of business that exists today, and many people may own one without knowing it. Sole proprietors are simply individuals who engage in some sort of business venture for themselves. There are no filing requirements to start a sole proprietorship, and they may even do business under an assumed name if they choose to file a fictitious name with the state. One of the main drawbacks of sole proprietorships is that the owner can be held personally liable for all obligations incurred by the business.

Partnerships – A partnership involves two or more people who work together in a common enterprise and share in the profits and losses of that enterprise. Like sole proprietorships, partnerships can be formed without any state filings, and can actually be formed with a simple oral agreement. In some cases, a court may even determine the existence of a partnership even in the absence of an agreement. All partners are jointly and severally liable for the financial obligations of the partnership and profits or losses pass through to the partners for the purposes of taxation.

Corporations – A corporation is a legal entity separate from its owners created to conduct business. Because it is a separate entity, a corporation has the benefit of shielding its owners from personal liability for the debts or other obligations incurred by the corporation. One of the main disadvantages of a corporation is the legal requirements associated with formation and ongoing operations, which make them better suited to large, well-established businesses.

Limited Liability CompaniesLimited Liability Companies are a relatively new business formation favored by many startups and small businesses because they combine the flexibility of partnerships with the liability protection of corporations. An LLC has the same limited personal liability as a corporation that is provided by state law and gets treated as a Partnership for Federal tax law purposes.

Choosing a business formation can be a complicated decision with far-reaching implications on the success and operation of your business. If you have any questions at all regarding business formation or any other matter related to business law, the skilled lawyers at Structure Law Group can help you. Please do not hesitate to call us today at (408) 441-7500 for assistance today.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Do you have a great idea but aren’t sure how to start a business? Creating a startup can seem daunting at first. There are many questions to consider when defining what type of business you want to start and figuring out what it will look like once your plan comes to fruition. There are also a few legal activities you need to complete before you can open up shop. Here are 4 steps to starting a business and some tips to help you get started.
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4 Steps to Starting a Business

1. Determine Your Market and Specialty

Before you create a startup, you’ll need to determine what product or service you will offer your clientele. Make sure that your offering is focused enough so that your brand will become easily recognizable alongside your product or services. Once you determine what you will offer your customers, you need to think about your target market. This is known as conducting market research. Where is there a demand for your products or services in the market? Is the market already saturated with the products or services you plan to offer? Make sure you are able to utilize enough of the market share for the products or services you will be offering.

2. Select Your Business Type

There are many different types of business entities, such as sole proprietorships, limited liability corporations, partnerships or corporations. Each of these has its own advantages and disadvantages when starting a business. Hiring a business lawyer is a good way to determine which business type will best suit your startup’s needs and protect both you and your company’s interests. The team at Structure Law Group offers expert advice and council to make sure that when you start a business it’s done the right way.

3. Register Your Business

When you’re starting a business, you need to pick a company name that will be relevant for years to come. Pick something catchy enough to remember that also aligns with the brand you are trying to portray. Once you’ve picked a name for your startup, contact a lawyer to help you get your business registered, licensed and trademarked.

4. Write a Business Plan

A well-written business plan will help you chart measurable goals for the future. Your business plan will change over time as you amend or add ideas. In general, try to project your plans about 3-5 years in the future. Be sure to include financial information, like potential funding opportunities, a detailed marketing plan, and information about your company’s mission and values. A solid business plan will also assist you in securing future funding for your startup.

If you follow these four steps, your startup will be set up for success. Remember, when starting a business, it is always important to consult a business lawyer like those at Structure Law Group to help you with any paperwork or legal decisions.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Deciding to start a small business can be both exciting and stressful, and seeing your business succeed can be highly rewarding.

The reality of starting a small business is, however, that forming and running a business is generally far from a simple task. Business owners must have a viable idea, the necessary supplies to bring that idea to fruition, and a client base to keep the business afloat. Furthermore, small business owners in California must always ensure that they are in full compliance with numerous federal and state laws and regulations. This can be particularly daunting as many entrepreneurs may be largely unacquainted with all of the applicable laws, and may not have the time or expertise to familiarize themselves with such regulations.
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If you are a small business owner, a California business attorney can advise you on all the essential steps you must take in order to comply with all necessary laws.

A business attorney can make sure you remain in compliance throughout all of the stages of your business, whether you are forming your business, or ready to dissolve your business and move onto a new venture. A lawyer can answer your questions and assist you in the following matters and more:

• Choosing the best business entity for you
• Legal formation of your business
• Drafting articles of incorporation
• Drafting operating agreements and bylaws
• Drafting buy-sell agreements
• Securing all necessary licenses
• Applying for and receiving all necessary permits for your business
• California Secretary of State filings
• Lease agreements
• Protecting your intellectual property
• Drafting employee contracts
• Complying with all employment laws
• Business transactions and contract review
• Contract dispute resolution
• Collection efforts
• Restructuring after bankruptcy
• Resolving partnership disputes
• Dissolution requirements

As a small business owner, you will face many legal decisions and issues on an ongoing basis.

If you make the wrong decision or fail to comply with a federal, state, or local law, you may find yourself facing expensive penalties, sanctions, or even watching your business get shut down. A quality small business attorney will be able to assist you with legal matters from the start to finish of your business tenure. A lawyer will also stay familiar with any changes in relevant business laws and can advise you on any necessary actions in response to these changes.

Contact Structure Law Group for help with your small business.

Staying up to date on all laws relevant to small businesses can be time-consuming and leaving such matters to a business attorney allows you to focus on what is most important–day-to-day operations, growing your business, and achieving your goals. Whether you have a sole proprietorship, partnership, limited liability company (LLC), corporation, or other type of small business, the dedicated lawyers at the Structure Law Group in San Jose, California can help you. Please do not hesitate to call us today at (408) 441-7500 for assistance today.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Sole Proprietorships: Advantages and Disadvantages

Many small businesses in the United States operate as sole proprietorships. In fact, this is the most common type of business and is business in its simplest form. In this article we will discuss some advantages and disadvantages of sole proprietorships and more specifically, owning and operating a sole proprietorship in California.

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Advantages of Sole Proprietorships

· Low start-up cost. Since there is no legal distinction between the person and the business entity, the sole proprietor is not required to register as a legal corporation. This saves on filing costs. Here in California, there is also a high minimum tax which sole proprietors avoid.

· No business taxes. Income generated through the business is reported and paid on the sole proprietors’ personal income taxes.

· No annual compliance. Unlike corporations, sole proprietors are not required to pay annual fees to retain their legal status.

· Simplicity and speed of setting up your business. While starting a sole proprietorship, LLC or corporation requires compliance with licensing, local laws and regulations, individual owners of sole proprietorships have lower overhead costs and speed though the process.

Disadvantages of Sole Proprietorships

· Personal liability. Since the business is not legally separate from the owner, the owner is personally responsible for all debts and transactions.

· Fewer investment opportunities. Once an investor or partner has joined the business, it is no longer a sole proprietorship. The transformation of the company will require compliance with licensing requirements and filing fees. As a result, it may be hard to find an investor to back your company.

· Debt. Many sole proprietors have dipped into personal assets or acquired loans to start their company. Since a sole proprietorship is not a formal business entity, personal loans may impact the owner’s credit score.

Is a sole proprietorship the right decision for you and your business? Your team here at Structure Law Group would be happy to help you start your sole proprietorship or answer any questions you may have. You can find more about the services we offer here.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.