7 things to think about when starting a business

Starting a business sounds exciting, but it’s also easier said than done. I’ve seen plenty of California business owners trip over the basics when setting up their companies. The good news? Most early mistakes can be fixed later, though fixing them usually costs more time and money than doing things right from the start.

That’s why it helps to have experienced business counsel on your side early on. Here’s a practical, no-fluff roadmap to help you start your business the right way in California:

1. Create a Solid Business Plan: Your business plan is your roadmap and it tells investors, lenders, and employees what your business is all about. Keep it simple and clear. Include your goals, target market, products and/or services, and financial forecasts. If you’ll be sharing detailed plans with others, use a non-disclosure agreement (NDA) to keep your ideas protected.

2. Pick the Right Legal Structure: Choosing between an LLC, corporation, or partnership affects everything from your taxes to your personal liability. The right choice depends on your goals, how much risk you’re willing to take, and how you plan to grow. A business attorney can walk you through the pros and cons before you file anything with the California Secretary of State.

3. Figure Out Financing: Whether it’s a small business loan, an investor, or help from friends and family, financing decisions shape how much control and flexibility you’ll have. Make sure any loans or investment terms are clearly documented. And remember, if you’re raising money from multiple investors, California and federal securities laws might apply.

4. Check and Protect Your Business Name: Don’t fall in love with a name before you make sure you can actually use it. Search the Secretary of State’s records, check trademarks, and look for domain name availability.    Once you’ve found the right one, consider registering it as a trademark and filing a DBA if needed.

5. Choose a Business Location: Most start-ups lease space instead of buying—it’s faster and less expensive. But don’t rush into a lease. Review the terms, make sure any improvements are clearly addressed, and confirm you’re zoned for your type of business. An attorney can help you avoid expensive surprises later.

6. Get the Right Licenses and Permits: California has lots of rules depending on what kind of business you’re starting and where you’re located. Double-check that you’re properly registered and have all the permits you need before opening your doors.

7. Review Your Insurance Coverage: Insurance can be confusing, but it’s essential. Most businesses need at least general liability coverage. If you offer professional services, consider professional liability insurance. And if you handle customer data, cyber insurance is a smart move.

Starting a business takes planning, but you don’t have to do it alone. I help California business owners set up their companies the right way so they can focus on growing instead of fixing costly mistakes. Reach out to The Law Office of Robert A. Bucci to talk about how the right legal foundation can help your business thrive.