When you are starting a new business you will have a lot to think about and plan. While you most likely have your business idea firmly in mind, do you know what structure your business should take?
You have a lot of options available to you in how you can structure your business. How your business will be put together and run is vital to the success of your company. If you are in the process of organizing your new business, a corporate law firm can help, and here's how.
You Are The Sole Owner
The most common way a small business is structured is as a sole proprietorship. This means you are the only owner of your company. You are responsible for every aspect of the business, from building maintenance and rental costs to hiring employees and payroll.
If you are planning on operating as a sole proprietor, you can use a corporate law firm to help you set up your business bank accounts, file your documents for a business license, and help you plan out your budget and expenses.
They can advise you on whether or not to rent an office or a warehouse or if you are better off at first starting from home.
Partnership
You might be starting a business with a friend or family member and therefore would like to structure your business as a partnership. Partnerships can involve multiple owners and it could get complicated when everyone has their own opinions on how things should be run.
A corporate law firm can help you structure your partnership or multiple-owner business in such a way that there is a hierarchy. They can help you decide who would get the overall final say in most decisions, how the business expenses and responsibilities are to be distributed among the owners, and more.
A corporate law firm can draw up contracts and agreements so each owner knows without a doubt what their position is in the company.
Limited Liability Corporation
When you are a smaller company, you might think that limited liability corporations are only for large companies with multiple headquarters in many countries. This isn't the case, and in fact, there are many small businesses that operate as LLCs.
There are many advantages to running your small business as an LLC. It can protect your personal assets from a business failure or lawsuit. There are tax advantages to running an LLC over a small business, as well as other benefits.
Work with a corporate law firm to see if an LLC is the best option for you.
How safe is your business? While many company owners focus on things like bolstering doorways and protecting their products, it is easy to overlook the legal liabilities many places face. I started thinking more seriously a few years ago about making some changes, and a friend of mine mentioned how important it was to hire a legal team. I worked with the legal team to take care of everything from getting our signage figured out to identifying different places that we could cut back on, and it was really fascinating to see the powerful difference it made. This website is all about avoiding legal drama.