5 Things to Consider When Entering a Partnership Business in Los Angeles
Starting a new business is an exciting venture that has the potential for a great reward2 min read
Starting a new business is an exciting venture that has the potential for a great reward. For those looking to enter into a business partnership, there are plenty of unique considerations to keep in mind that may be specific to the Los Angeles market. As any business attorney familiar with Los Angeles local regulation will tell you, there are numerous points to ponder before making a final decision. Here are five of the most important things to consider when navigating a partnership business in Los Angeles.
1. Understand Your Relationship With Your Partner
It is important that partners going into business understand the vision of their company and how this vision is shared between them. Partners should reach common understanding and agreement on the way the business will be conducted, and what each partner expects from the other. If there are multiple partners, a buy-sell agreement is essential in cases where one partner departs from the venture or passes away.
2. Agree Upon the Financing Structure
Agreeing upon a financing structure is one of the most important points to consider when entering a partnership business. Here, both the initial capital input and possible additional investments should be planned out. Managing investments, earnings, and returns should all be established up front. Coordinating the payment of expenses and other liabilities of the partnership is also critical. Not doing so can quickly become a source of contention between partners.
3. Craft a Strategic Business Plan
When starting a new business, creating a strategic plan is required in order to make sure that the venture is built for long-term success. This means not only laying out the purpose of the venture up front, but also taking into account long-term strategies such as tax planning, income growth, and management structure. A strategic business plan should be discussed at length between partners and put into writing.
4. Stay Up-To-Date On Local Regulations
Business regulation in Los Angeles includes a myriad of complexities, including natural resource management, business licenses and taxes, labor, workers compensation, health and safety, and environmental and housing law. As such, staying up-to-date on all the legal regulations in your area should be a priority. Additionally, being organized and having a thorough understanding of your company’s financial documents will help maintain compliance with local regulations.
5. Seek Professional Advice
Reaching out to a local business attorney who is familiar with Los Angeles local regulations is a great way to ensure that you’re up-to-date on all the legal requirements of running a successful business in this area. Having a legal counsel will help protect you from potential risks and also make sure you are legally compliant. An UpCounsel attorney can provide reliable advice on the complexities of forming and running a business legally and managing complex transactions.
Forming a partnership carries with it plenty of obligations and responsibilities. Before jumping into the venture, make sure to weigh all the options and stay on top of the local regulations and laws. Connecting with a seasoned business law firm can also be a great resource to get your questions answered and make sure everything is done correctly.