Coming to Los Angeles, California – Make sure you have your research completed before you make an investment, hire a key employee, or enter a business partnership. Conduct a Due Diligence investigation. Ask questions on what type of searches can be performed to give you a comprehensive background into the partners or even real estate you wish to purchase or be a part of. Financial records for your investments and future partners here in California need to be verified and researched before you sign the dotted line. There should be several items on your checklist, especially if you are a startup business or investing with United States (US) partners. We will cover a few of them here. Check past credit, income sources, and brokerage accounts of those you consider entering a business relationship within California.
It is recommended to hire a third party to conduct the investigation to avoid any biases, shortcuts, or potential elimination of information gleaned during the research for dishonest reasons. Some professionals, however, feel that third-party entities could be involved in accepting bribes for contracts or services rendered; but in most business dealings, this is not highly likely, but you can never be certain. Whoever conducts the investigation, ensure they are licensed, insured, and have a service agreement with fees that outline what they are going to do for you and your request.
In setting up a business in the US and or California, conduct research on all those people and entities involved to get the business off the ground, even if it is a subsidiary, division, or branch office. You should also include any vendors, investors, board members if applicable, and advisors.
If using contractors, make sure they have the proper current licenses, and insurance and check their reputations for quality with previous customers. By conducting due diligence investigations, you will find valuable information that will help you make an informed decision on prospective entities.