Photo of Professionals at McCoy Fatula, APC
Photo of Professionals at McCoy Fatula, APC

Determining model key factor in California business formations

On Behalf of | Sep 9, 2016 | Business Formations

In California and throughout the United States, new businesses are launched daily. Entrepreneurs often face challenges regarding various aspects of the business formations process. Often, it proves beneficial to seek experienced guidance when making decisions regarding business models, whether a business will be run as a sole proprietorship or corporation, and other important issues.

With regard to business models, some company owners operate their businesses through subscription based services. Customers pay weekly, monthly or annual fees for memberships that allow them shopping privileges. This is how one new business in another state functions to provide free delivery of its wine and spirits products.

The company, located in Florida, also offers grocery items delivered directly to customers’ doors. At the click of a button on a smart phone or computer, a busy mom or other customer can hire a shopper to collect needed products, then have them delivered free of charge. A similar company with client bases in the same state, as well as more than 20 others, chose a different business model that operates on individual transaction fees rather than memberships.

It is not uncommon for difficulties to arise when making decisions regarding business formations. In addition to business models, California entrepreneurs may have questions regarding taxes, hiring workers and other issues. By seeking assistance from an attorney before launching one’s business, delays and complications may be avoided. An attorney experienced in business and commercial law matters can clarify tax laws, as well as offer sound counsel and effective representation throughout all phases of building a new business.

Source:, “Need groceries, wine or business delivery? New services have launched in South Florida“, Marcia Heroux Pounds, Sept. 3, 2016

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