Los Angeles is a fantastic location to open up a business. Due to the location and the large number of people in the area, any business has the opportunity to succeed here. However, without the proper knowledge, starting up a business can be an exhausting process.
If you have considered opening up a business in Los Angeles, but you don’t know where to start, then today we will be having a look at the best way to go about it, so you can fully understand what you will be getting yourself into.
Research the Area.
You need to research your surroundings, even if you’re familiar with Los Angeles. First, you need to make sure you know the area where you are thinking about opening your business. How many people walk past? How much is the rent? How safe is the street? What is the best method of marketing? What and where is your competition? Are locals and tourists interested in your business idea? It’s essential that you do your research, so you know the answer to these questions.
The best way to fully know your surroundings is to settle early into Los Angeles. Whether are your first landing pad or as a long-term solution, a furnished apartment in L.A. could be your answer. In the serviced apartment and corporate housing space, take a look at companies like Blueground. They provide beautiful apartments for both short and long-term rentals, starting at 30 days. The apartments are beautifully designed and offer the perfect setting for both living and working.
Choose a Name.
Once you have found a potential location and you know your idea has a chance to succeed, you need to choose a name for your business. There are a number of important things that you need to remember before you finalize the name you have in mind. You need to make sure the name is catchy and unique. Conduct due diligence to ensure the name of the business isn’t in defilement of any kind of trademark or other intellectual property rights. Check your local, state and federal guidelines for name availability and compliance verification. Also, be careful if you are using detailed terminology that could become a credit risk to your business.
File an FBN.
A Fictitious Business Name (FBN) is not a requirement in all circumstances in Los Angeles, however, depending on the nature of your business, it could be a good idea. First, you will need to conduct a business name search. Then you will need to file for an FBN in person, via a postal application form. Within 30 days of your FBN registration, you need to publish a notice of your objective to use your chosen name for 4 weeks. If you have found a truly unique name, then you need to look into ways of protecting it.
Select an Entity.
There are no two businesses that are exactly alike. The type of entity you decide to go with will be based on your business structure, but will be governed by other factors. It might be a good idea to reach out to a knowledgeable and experienced business consultant or attorney. Before you make a decision on which entity to go with, you need to make sure that you research and fully understand the pros and cons with each one. This can be overwhelming, but it is an essential step you need to go through before opening up your business. The options are a sole proprietorship, a general partnership, a limited partnership, a limited liability company (LLC) and corporations (S, C and professional corporations).
Register Your Business.
When you have made a decision on the appropriate entity for your business, the next step would be registering with the Secretary of State (depending on the chosen entity). Using a Los Angeles business law attorney to handle this using high accuracy is highly advised. Again, subject to the chosen entity, you may need to draft your bylaws, an operating agreement and/or a partnership agreement. Finally, every business needs to obtain an Employer Identification Number (EIN) or Tax Identification Number, to allow them to open a bank account.
Apply for Licenses.
The final step to the grand opening of your business is to put in applications for the compulsory local, state and federal licenses and permits that are required to run your business. Registering the business owners, locations and alternative business names are included in this. If you have an LLP, LLC, corporation or other type of registered entity, then you need to obtain a registered agent. You should also get in contact with the County of Los Angeles for the verification of required licenses or permits.
Before starting any business, you need to make sure you are well prepared for success and failure. It can be a risky move, but if it goes well, you could become extremely successful. For the best advice and support, reach out to a business attorney.