Starting a business is challenging to say the least! Sometimes you start a business because you need to and other times because you have a dream. Either way, there are not only potential rewards, but also risks and important decisions that will make a difference in your business. You want to structure your business so your potential for success and minimize your exposure to risk. In addition to your business plan, you will need to choose the business form that best suits your business.
While it would be very easy to purchase and file forms through generic online services, doing so without good legal counseling may not be the best approach. We can help you in these areas:
What Type of Business Entity Should You Create?
It is important that you understand what the different types of entities are and what difference it will make for your business when you decide. Even if you start out as a sole proprietor as you grow you may need to change your entity to a partnership, corporation or limited liability company. You should be thinking about this when you start because your choice might affect what happens later on.
Does my Business Entity Choice address Personal Liability?
One of the major considerations in moving your business to a limited liability company or corporation is how much potential personal liability your business exposes you to. That liability can arise in multiple ways that you must be aware of.
Should you consider Business Succession Plan from the beginning?
It is often said “if you do not have a plan, you plan to fail.” From the first day you are in business you must make the effort to identify your goals for exiting the business whether through a sale or passing it on to family or employees (estate planning). You must also consider how the business will run if something happens to you (trusts).
Naming your Business
A common misperception is that the mere act of filing documents with the state protects your name. That is partially true at best. Before you start investing money in the business you must be aware of the issues that might affect the name you chose.
The legal relationship between you and your employees is subject to many legal rules that address payment and behavior issues. Employees are a major source of claims against the small business owner. Therefore you must be aware of things like discrimination laws and IRS rules about classifying workers.