Starting a new business is a major decision for anyone, even someone who has experience with business start-ups. Certain legal decisions you make early on can have a major impact on whether your business succeeds or fails. Here are just some of the important legal issues you need to consider when forming your business:
- Do you have a business plan?
- One of the most crucial parts of starting a business is having a business plan that will dictate how you intend to operate and make money. This is not only important for your sake, as having a business plan is a critical component for attracting financing and planning your steps as you form your company. What you lay out in your business plan will lay out your requirements for every other step in forming your business.
- Do you have the appropriate licenses and permits?
- There are few industries that do not have some type of regulations dictating how they must carry out their business. To that end, you need to make sure you meet all local, state, and federal licensing and permitting requirements to start your business. If you do not, you could find your company hindered by serious legal and financial troubles before you have even begun making money.
- What will your tax situation look like?
- Taxes are always a serious problem for any business, especially as they begin to grow and develop their market. Exactly how much you need to deal with in terms of taxes can depend on a number of factors, including what business structure you use when forming your business. The decision about whether to create a partnership, corporation, LLC, or other business entity can quite literally determine the success of your business, based purely on the tax implications alone.
- How will you handle potential liabilities?
- Liability is simply another part of doing business, but the question is how you handle those liabilities. Insurance can help protect you to some extent, but your business structure is also important for protecting you and your business partners from potential legal or financial issues. Choose the wrong business structure, and you may find the legal and financial issues from your business haunt you long after you have closed up shop.
- Are you able to meet your company’s formal legal requirements?
- Different types of businesses have different legal requirements to start up. A partnership, for example, is relatively simple, while a corporation has strict requirements about shareholder meetings, board meetings, and management of finances. You need to be able to handle your company’s formal legal requirements, or else face potential consequences if your company is ever brought to court.
Let the commercial lawyers at Poulson Law help you with your business. With our assistance, you can minimize your legal risk and maximize your profits. The sooner you call, the sooner we can get started helping you and your business. If you are interested or believe you may have need of our services, please call our Cooperstown office at 607-547-1195, or visit our contact page.