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What are the basic steps to starting a California business?

Now that the California economy is starting to ramp up in a big way, a lot of new entrepreneurs in the construction world are looking to start their own businesses and grow their existing operations. In California, choosing the right business structure is critical, whether it be an LLC, S-Corp or other entity. Business formation is not something that happens intuitively, but with the help of an experienced California attorney, getting set up and reaping the benefits of an established business can be relatively painless.

New start-up companies need to guidance, and all of that starts with a business plan. By being able to articulate the goals, purposes and basic functions of a business start-up in a comprehensive business plan, the rest should fall into place by following the advice of your attorney. This is most critical when it comes to choosing the legal structure of the business. Each structure has different tax, liability and management structures, so finding the one that best fits the business plan is always the primary objective.

Nonetheless, setting up the business does not stop there, there are other important registrations that must be completed, primarily for tax and income reporting reasons. In addition, most construction businesses in California will need additional permits and licenses to operate, including hiring employees. And of course, every construction company must have extensive liability insurance coverage, which can be complicated and expensive for those who are just breaking into the business.

The U.S. Small Business Administration has put together some helpful general advice that new business start-ups should consider. But when it comes to operating in California and understanding local and state laws, people should trust the handling of their business formation documents to an experienced attorney.

Source:, “10 Steps to Starting a Business,” accessed on Nov. 30, 2014