Would you like to invest in the real estate sector in San Diego? Just like other states, there are rules and regulations that govern the way businesses are formed and how they operate. Being on the right side of the law is essential to protect your business and to do this, you have to involve legal experts. These professionals will guide you ensuring that everything is registered in the proper way.
Even with a lawyer’s protection and help, you must not miss any of the steps indicated below. Investing in the real estate business guarantees profits if done right and you don’t want to lose any of that. Here are the steps and requirements for setting up a real estate business entity:
1. Determining the business name
The business name selected determines the marketability of the business. The business brand is the business name and you should therefore select a unique name that is easy to remember. A lawyer can help you search in the registered names’ database to ensure that the name isn’t registered elsewhere.
During the name search, trademark searches should be carried out as well. This will prevent trademark infringement of another entity. You should also avoid generic names or misleading terms. Finally, verify that your name is compliant with state rules.
2. Determine the business address
Declare the address that your business will use. For licensing requirements, include the physical address. You should also include the mailing details and always include a working email address.
3. Form the business entity
This is by far the most important part of the business formation. The chosen business entity determines the owners and the business’ liability, the taxation system to be used, investment opportunities, administrative costs, or access to credit.
You require a lawyer at this step of forming your business. The professional set of eyes will guide you through sole proprietorship businesses, partnerships, corporations, limited liability companies, C corporations, professional, and S corporations.
4. Getting the Employer Identification Number, EIN
The EIN is the most important business documentation for businesses that run as separate entities from the owners and sole proprietorships. The EIN is important for taxation purposes and you should file for the EIN through the IRS’s website immediately after determining the kind of business entity to run your investments through.
5. Get the business license
It is illegal to run a business without a legal operating license. A business tax certificate and/or a general business license are necessary. The license will have information on the name of the business owners, the business name and address, the company’s structure, EIN number, number of employees and expected annual revenue.
To get your business tax certificate or the business license, you should make and send your application to the relevant offices within 15 days from the date the business starts running. For your taxation needs, check with IRS or have your lawyer follow up on the taxation process.
In conclusion, these steps are vital for business formation. You should know that the business entity chosen will determine the taxes applicable as well as other legal requirements. A business law attorney is the best person to seek guidance on business formation matters.
David Wicks is a lead business attorney in a San Diego Law firm. Check out his profile for more information about the law firm and their fees on business formation.