Costly Mistakes of Incorporating Your Company Online

A client walked into the Law Offices of Matthew Mullhofer explaining why he decided not to use an online service to incorporate his new business.

He explained to Matthew Mullhofer that he did not feel comfortable handing out vital information such as social security numbers, credit card accounts, and asset information to an unknown entity.

Matthew Mullhofer agreed with the client's realistic fears of identity fraud and theft. Unlike online companies, attorneys are licensed by the state bar and are held accountable for their actions.

In addition to the identity fraud issue, Matthew Mullhofer pointed out that there are many tax and legal consequences that must be addressed when setting up a new corporation such as what type of entity fits best for ones business. The choices are many: C-corp versus S-corp, limited liability companies versus corporations, and limited partnership versus general partnership. The online companies do not offer advice regarding these decisions.

There are also tax considerations such as choosing a calendar year end over a fiscal year end. What are the proper business expenses and deductions? How does one go about making an initial stock offerings and how to provide proper capitalization for the company?

Matthew Mullhofer also pointed out that if you do not follow the appropriate state and federal corporate formalities you may be in jeopardy in losing your limited liability status as a corporate officer/director.

Incorporating your business is a legal process and should be left to the legal professionals.

We all have different training and skill sets. You would not take your car to be fixed by anyone other than a car mechanic. As attorneys and tax professionals, we specialize in forming a corporate entity that can legally exist for many years to come.

For more information on incorporating please visit Matthew Mullhofer's website at www.protectmyassets.com

Top 10 Reasons Business Owners Must Have A Relationship With An Attorney

Do you live in California? Do you own a business? Are you thinking of owning a business? Well here are protectmyassets.com's Top 10 reasons building a relationship with an attorney are vital as a business owner!

1. They are operating their business without properly drafted written agreements containing safeguard to maximize their protection in the event of a dispute.
   
   
2. They remain unaware of the myriad of governmental regulations they are responsible for complying with and the consequences for failure to do so.
   
   
3. They do not realize that by incorporating their business they eliminate personal liability exposure in the event of a lawsuit and gain tremendous tax advantages.
   
   
4. They are unaware of the vast number of employment laws they immediately become subject to upon hiring even one part-time employee.
   
   
5. They have no contractual agreements in force (e.g. mediation and arbitration) to avoid drawn out litigation with its costly attorneys fees and potential for large jury verdicts.
   
   
6. No provisions are in place to address situations where a partner wants to leave the business or be bought out.
   
   
7. They may have misclassified workers as independent contractors instead of employees which can result in exorbitant penalties and interest.
   
   
8. No efforts have been made to prevent the theft or misappropriation of their company’s intellectual property (ideas, trademarks, trade secrets, copyrights, etc.)
   
   
9. They are unaware of the hidden pitfalls included in their office space leases that could, if they arise, substantially increase their cost or lead them into bankruptcy.
   
   
10. They lack a costs effective plan to collect their stale accounts receivables causing them to lose their hard-earned money.
    

Our Firm’s hands on involvement in the business decisions of our clients allows for the early identification and minimization of potential problems. Through implementing our legal and tax strategies, our clients have saved hundreds of thousands of dollars in costly decisions and litigation. Please feel free to contact us at our Orange County Attorneys office to schedule a private meeting.

Contact Information
Phone: 877-246-2770
Email: info@protectmyassets.com
Web: www.protectmyassets.com

We hope this information was helpful! If you found this blog helpful, we encourage you to pass this on to friends, family and associates. Thank you!