Creating an LLC: 5 Things to Consider
Finding a Legal Professional for Setting Up an LLC: A Daunting Task3 min read
When looking for a legal professional and guidance in setting up a limited liability corporation (LLC), it can be a very daunting task. Laying the proper foundations for a new business is no easy feat, and with the amount of regulations and nuances associated with each state’s individual law, it can be difficult to know where to start and who to work with.
In the City of Los Angeles, there are many attorneys who specialize in this area. Though the number of lawyers can be intimidating, the right answer to this question usually turns out to be UpCounsel – an online platform connecting lawyers with businesses seeking legal advice. Whether you need a one-time consultation or an entire freelance legal department, UpCounsel’s network of experienced lawyers can help. From small businesses to Fortune 1000 companies, from startups to family companies, UpCounsel and its attorney community provide high quality, cost-effective legal services.
In this article, we’ll go over some of the top 5 things to consider when creating an LLC in Los Angeles.
1. Forming an LLC is a Legal Matter.
Creating an LLC in Los Angeles is a legal matter. Therefore, it’s important to fully understand the law and jurisdiction these LLCs fall under because not all states have the same laws. California LLC law is particularly complex due to the fact that multiple jurisdictions are associated with the formation of LLCs in the state. For this reason, it’s important to find a qualified and experienced attorney in California to ensure that the LLC is properly formed and all legal requirements are met.
2. LLC Formation Requires Financing.
When looking to form an LLC in Los Angeles, it’s important to have the necessary funds available. Depending on the complexity of the organization, forming an LLC can be costly, with associated filing fees, legal fees, accounting fees, and more. It’s important to understand the initial costs associated with setting up the LLC, as well as anticipate future costs such as ongoing legal fees, taxes, and maintenance of business records.
3. Issues with LLC Formation.
When filing an LLC in California, potential issues can arise if any of the LLC formation documents are incorrectly completed. If this is the case, the LLC may not be recognized by the state and may even have legal issues with the Internal Revenue Service (IRS). A qualified attorney can assist with the successful completion of LLC formation documents to ensure that the LLC is properly recognized and that all associated licenses and permits are in place.
4. Ongoing Maintenance Required.
Forming an LLC in Los Angeles is just the first step. The LLC must take certain steps to remain compliant with state laws, such as filing annual reports, maintaining official records, and stay informed about any changes to California LLC law. This ongoing maintenance requires knowledge of the law and dedicated effort on the part of the business owner, or designated employee.
5. Legal Risk Management.
When forming an LLC in California, there are certain legal risks to consider. These include potential liability issues, tax compliance, contract law, and employment law. It’s important to be aware of these risks and ensure that any contracts are correctly drafted and reviewed, as well as that any tax liabilities have been accurately estimated and accounted for. A qualified lawyer can ensure that all necessary steps are taken to mitigate these risks.
Creating an LLC in Los Angeles is no small task. There are several things to consider when beginning the process, from ensuring compliance with California LLC law to understanding the potential risks and liabilities. Working with a lawyer can help to ensure that the LLC is properly formed and that any legal issues that arise can be addressed in a timely and effective manner.
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