10 Good Reasons to Start a Business This Year with the Help of a Great Legal Team
Few experiences in life are as momentous and exhilarating as starting your own business. For many, it is a lifelong dream to be their own boss, make their own hours, and to do the work they want to do each and every day. However, starting a business can also be a frightening and even perilous prospect. In fact, many people get so worried about the unknowns that they simply never take the first step and actually start following their passion. While that is understandable, the lawyers at Stibbs & Co. can help you every step of the way. We strive to give every entrepreneur the resources and advice he or she needs to start a new business.
Often, the first step in helping a client prepare to start a business is demystifying some of the issues they will need to navigate in order to be successful. Once the anxiety over starting a business begins to dissipate, entrepreneurs can begin the hard, rewarding work necessary to build a successful business.
Here are 10 reasons why we strongly recommend getting your startup off the ground with the help of experts in business law:
- Contracts: Most businesses must execute contracts for space, services, and supplies, at the least. Often, they also require agreements between partners, investors, and employees. It is important to get each contract right to avoid ending up in court.
- Registration, Licensing, and Permits: Many business entities must register with the state in order to be recognized. Even businesses that are not required to register may be required to obtain licenses or permits. An experienced business law firm can make this process painless.
- Business Forms: The choice of business form (i.e. sole proprietorship, partnership, LLC, or corporation) can dictate the legal responsibilities and potential liability of those involved in leading the business, as well as the manner in which it may operate. For example, choosing the wrong entity may make you personally liable for the wrongs of employees or partners. We help clients avoid those pitfalls.
- Multi-state Businesses: The preconditions for forming and conducting a business in one state may not be accepted in another state. If you are not careful, the protections you have in your home state of operations may be lost if you do business in another state. Stibbs & Co. can help you safely navigate these uncertain waters.
- Strict Conformity: Some business entities must strictly conform to state laws governing that business form or risk losing the benefits and protections of those laws. Expert legal guidance is crucial to void such risks.
- Capital: Often, new businesses need to raise significant money. It is important to keep records of income and distributions and behave at all times in a fiscally responsible manner. Different business entities may require different procedures for raising capital and making distributions. A good business lawyer can explain these procedures to you.
- Variety of Entities: There may be only five basic business entities, but there are other options within these entities impact owners, such as double taxation and liability for the acts of partners. A little legal advice here goes a long way.
- Autonomy: Many new business owners quickly discover that the things they don’t decide are decided for them. Most states have adopted “Uniform Laws” that fill in the gaps for business entities where their charters, by-laws, and other organizing documents are silent. Without consulting a business attorney, you may find yourself subject to laws and regulations that you don’t even know exist.
- Taxes: Different business forms provide different tax advantages and disadvantages. Experts in business law are well-versed in these intricacies.
- Liability: Various business forms provide differing protections and risks to the business owner/investor. Personal liability means that your business puts everything you own at risk. An experienced business attorney can help you avoid this situation or minimize your risk. Understanding your personal liability and reducing the risk that your business may risk the economic well-being of you and your family is well worth a consultation.
If you’re ready to start your own business, Stibbs & Co. can help. Contact us today to take the first, responsible steps toward creating a new business built to last.