The decision to start a new business can be one of the most rewarding and exciting endeavors you ever pursue. At the same time, it can be daunting, frustrating and overwhelming. You need to hire a staff, create a sales and marketing plan, get an office and more. It’s understandable if you can’t figure out where to even start. Here’s a helpful hint: start at the beginning.
Businesses must be based on legal structures and guidelines. You need an experienced business formation lawyer by your side to guide you through the decision-making process and keep you from many of the pitfalls you will encounter along the way.
What are some pitfalls you might encounter when you first start a new business? Let’s consider the following issues:
- How are you financing the business?
- What business structure will you choose? sole proprietor, LLC, LLP, S Corp, C Corp or LP?
- How will your business pay taxes?
- Will you have a board of directors or investors who will have a say regarding day-to-day business decisions?
- How will the owners share profits?
- Do you need to buy or lease any big items, such as real estate or vehicles?
- How will you protect your intellectual property?
These are the first of many questions you will need to answer when you set out to start a new business. That’s because even after your company is up and running, you will always need legal and financial advice as the business grows.
While a good accountant or a financial planner will also serve you well when you start a new business, having a business formation lawyer can help you answer the questions above, along with questions you have not even thought of yet. The answers to these questions can save you a lot of trouble in the long run. Answer them now for a successful business in the future.