The new year is a great time to reflect and set new goals for yourself, and your career. Many people dream of starting their own business, but don’t know where to start. The process can be exciting, but also stressful. Working with an experienced lawyer through the process is the best way to start your business off on the right foot, and know that you’ve set the legal groundwork correctly to prevent problems down the line.
Entity Type
There are a few key factors in starting a new business. First is entity type. This will depend on numerous factors, including the type of business, number of owners and tax considerations. Choosing the right entity type sets your business up for success and minimizes your legal risks.
Correct Formation Documents and Agreements
Second is making sure the correct formation documents and agreements are in place at the onset. The beginning is the most important stage of starting a business. My clients typically come to me looking for a way to protect themselves and their families from liability, and to maximize the value of their investment. Engaging a lawyer early in the process is key to realizing these goals. Many people think filing articles of incorporation is all you need to do to start a business. That is one of the first steps, but there’s much more to it than that.
Roles Going Forward
Third is ensuring everyone involved understands their roles going forward. Would your business have multiple owners? Do you plan to have employees? What are your expectations and goals for business growth? What happens if one owner wants to sell the business or her interests in the business? Everyone involved in the new business needs to be on the same page and understand their roles and expectations. If this isn’t clearly laid out ahead of time, you can run into conflict and put your business at risk.
Cost Benefit of Engaging a Lawyer
There is also a cost benefit to engaging a lawyer in your business startup process. Some clients are more adept than others at negotiating. Even if you have a general idea of the terms of your business goals and agreements, an experienced business lawyer can easily put this into writing. This saves you time, and ensures that your contracts are legally sound, preventing you from potential legal fees in the future. Engaging a business lawyer makes the business startup process as efficient as possible.
Starting a new business can be the best decision of your life, but it can also be the most difficult. Working with a business lawyer can ease a lot of the stress and uncertainty of the process. It’s important to set the groundwork for success from the start. If you are in the process of starting a new business, engaging a lawyer early can be beneficial and less expensive than engaging one later to resolve problems.
If you have questions on starting a new business, contact Brent Johnson at 715-381-7104 or brent@lommen.com.
