Business Formation Attorneys in San Jose, California

Starting a business can be a thrilling but stressful and risky endeavor that involves many tough choices. Business formation is not something you can do overnight. Get legal advice from our business formation attorney at The Heritage Law Group to ensure that your business is formed the right way.  

With offices in Houston, Texas, and San Jose, California, we provide tailored representation to business owners and entrepreneurs throughout the two states, including Southern and Northern California and Montgomery and Fort Bend counties in Texas.

Choosing a Business Structure 

A business structure refers to the legal entity of a company that affects its day-to-day operations, taxes, ability to raise money, personal liability, and other aspects of managing and running a business. When starting a business, you choose one of the four business structures: 

1. Sole proprietorship. This is the simplest business entity that involves only one owner (the sole proprietor). The sole proprietor is responsible for the business’s day-to-day operations, while the company’s income and expenses are included in the owner’s tax returns.  

2. Partnership. A partnership is a business structure formed by two or more owners. A partnership is very similar to a sole proprietorship, except that the company’s profits have to be divided among multiple owners. Each partner must report their share of the income or loss on their personal tax return.  

3. Corporation. This type of business structure is separate from its owners. Typically, corporations are large organizations owned by stockholders. Forming a corporation can be a complex and daunting task because it requires you to comply with numerous regulations and tax requirements.  

4. Limited liability company. A limited liability company, or LLC, is a hybrid structure that has the characteristics of a partnership and corporation. If you own an LLC, you can benefit from reduced taxes and, at the same time, enjoy personal liability protection.  

It is vital to consider your needs and goals before deciding on the right type of business structure for your company. At The Heritage Law Group, our business formation attorney in San Jose, California, understands that the foundation of any prosperous and successful business begins with a legal structure. That is why we are committed to helping clients choose and implement the right corporate structure for their businesses.  

Establishing the Necessary Documents  

There are certain documents that are necessary when establishing almost any business:  

• Business plan. Every business needs a well-drafted and well-thought-out plan in order to thrive. 

• Partnership agreement. If you are thinking of establishing a partnership, it is vital to have a well-written partnership agreement in place.  

• Operating agreement. If you are setting up an LLC, you may need an operating agreement to establish the rules and structure of the business.  

• Buy/sell agreement. A buy/sell agreement may be an essential document for every company regardless of the type and size of the business. 

• Employment agreement. If you need employees to do work for your company, you need to have a proper employment agreement in place.  

• Non-disclosure agreement. You may also need a non-disclosure agreement to prevent sensitive information from being shared with others.  

Consult with a skilled business formation attorney to discuss your particular situation and determine the documents you need for establishing your business.  

The Step-by-Step Guide for Business Formation 

Business formation usually involves taking a number of steps, including but not limited to:  

• Conduct market research 

• Develop a business plan 

• Find funding for your business 

• Choose a business location 

• Choose a business structure 

• Name your business 

• Register your business 

• Obtain state and federal tax IDs 

• Apply for appropriate permits and licenses 

• Open a bank account for your business 

You may want to work with an experienced business formation attorney to get proper guidance on how to start a business in compliance with all applicable laws and regulations in your state.