Legal Question in Business Law in California

I'm starting a company in the Digital Media industry. There are 2 founders. The business will serve large corporations globally. We intend to seek investment capital and an eventual M&A.

How should formalize the company? Incorporate? LLC? What are the pros and cons.


Asked on 3/10/12, 9:29 am

2 Answers from Attorneys

Richard Jefferson M.E.T.A.L. LAW GROUP, LLP

That is a crucial question to answer before moving forward (impossible to fully analyze in this forum). In general, if you are not going to seek investors or have employees initially then you may be able to begin with an LLC. The main pro of an LLC is that it is relatively simple to form and maintain. The main con is that more formal investors may require the more formal structure of a corporation. You really should consult with an attorney so that he or she can analyze the specifics of your situation before moving forward. Contact me if you are interested in this service.

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Answered on 3/10/12, 9:58 am

Mr. Jefferson is correct. There are whole books on the pros and cons of different business forms. The one you choose must be tailored to your business plan and objectives, as well as your anticipated management and control structure, and how you plan to structure your investment financing. There is no way to do that analysis without in person consultation with an attorney. If you would like to schedule a meeting in my San Francisco office to evaluate whether you would like me to assist you, please let me know.

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Answered on 3/11/12, 11:54 pm


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