Selecting a Business Entity in California

Things just got a bit easier for people who want to register a
business in California. There are new regulations to help in the
selection of names for a business entity.

Choosing a business entity is difficult enough as it is and the
choices include an LLC, partnership, corporation, etc. Choosing a name
for the business, while exciting and challenging, is even more
difficult if the rules laid out by the Secretary of State (SOS) are not
followed.

It would behoove those who are serious about launching a business
that requires filing with the California SOS to do some homework and
check the newest changes to the regulations before picking a company
name and finding out it is not acceptable.

This isn’t an easy process and when a company is launched, the
choosing of a name is a critical part of the whole process of being a
“business.” In addition, the choice of entity and its name may have
long-term tax and economic ramifications, respectively. “This is one of
the major reasons speaking to a Los Angeles business attorney familiar
with the SOS guidelines will assist a serious entrepreneur in ‘getting
it right’ the first time when they go to register,” outlined Alan
Insul, a noted Los Angeles business attorney with years of corporate
experience behind him.

Perhaps the most important section that business entrepreneurs want
to pay attention to is the “same or deceptively familiar names”
section. In essence, it makes reference to the fact that if a name
being proposed for filing with the SOS is highly similar to one that
already exists, that name will be declined.

The name is too close to being the same if the name being suggested
and an existing name are identical; if the differences between the
suggested name and one that already is in existence merely rest on
differences in use of letters and other graphical touches, or if the
difference boils down to the presence or absence of a business entity
ending. The SOS regulations provide good examples of what to avoid when
choosing an entity name.

As with many areas of law, there are exceptions to virtually every
regulation and it only makes sense to speak with a Los Angeles business
attorney to get the full sense of how the regulations affect the launch
of a proposed business. “In the meantime, it’s a good idea to do some
pre-launch research to find out what pitfalls to avoid,” said Insul.

One other place a serious business entrepreneur may find solid
information backed by years of experience is Chapter 3 in the 2009
edition of Selecting and Forming Business Entities. The two volumes
will be available soon and also have a forms CD included. Respected Los
Angeles business attorney, Alan Insul, authored Chapters 3 and 7 in
this year’s edition. The material is specifically designed for
California business lawyers working with their clients to help them
choose the “best” entity for their business.

To learn more, contact Los Angeles business attorney and California corporate lawyer, Alan M. Insul by visiting Insullaw.com.

The content contained within this feature is not intended as legal
advice and does not constitute an attorney-client relationship.