Considerations When Planning Your New Business
When a person is starting a new business, it can be exciting but very stressful at the same time. While some entrepreneurs begin a business without taking into consideration all the possible legal implications, having proper legal guidance while planning your new business could be one of the best investments you ever make.
If you are in the beginning stages of planning your business, below are some of the things that you might want to consider getting legal help with.
- Business Structure – One of the very first things a business owner must decide on is which business structure best fits their needs. A business can be structured as a limited liability company, a corporation, limited partnership, or sole proprietorship, just to name a few. When considering which structure is right for you, it is important to consider any liability issues that are associated with your business as well as which structure will provide the best tax options for you. Along with deciding your business structure, you will need to register your company with a jurisdiction, or state where the company’s headquarters will be located, as well as obtain any permits or licenses for your business. This will, at minimum, include a tax registration.
- Business Name – This may seem like a minute part of starting your business, but it actually requires great consideration. You will want to consider what name best fits your business but take into consideration any legal implications of the name you choose. You must make sure that the name you have is available and isn’t already trademarked or being used by another business. Infringing on another businesses trademark could lead to a lawsuit, something most new businesses cannot afford. You will also want to see if the web address for your potential business name is taken. If it is, you may have to buy the domain for a high price. So before picking a name for your business, it is best to ensure that the web address name is already available.
- Confidentiality, Non-Compete, Intellectual Property, and Non-Disclosure Agreements – From the very moment you decide to start your business, you will be required to discuss your business and ideas with multiple people. You may meet with potential investors and other consultants. Everyone who you come into contact with will have access to very sensitive and confidential information about your business. While we’d like to think that everyone we work with will protect your business and ideas the way that you would, that doesn’t necessarily happen. That’s why it’s important to legally bind these people into keeping all information confidential by having them into such agreements.
- Member, Shareholder, Partner, and Other Investor Agreements – All of these people are important to starting your business. These individuals may also be friends or even family, but there is always potential for things to go wrong when starting a business together. There could be disagreements about who is responsible for what duties within the company, the future vision for the company, or compensation. Each of these things must be discussed in detail and put into written agreements. All pertinent details should be put in writing and signed by all members of the company.
Hire a Business Planning Attorney
While hiring a Florida business planning attorney isn’t a requirement during the planning stages of your business, it can be a worthwhile investment that can prevent plenty of issues in the future. David Toback has years of experience helping entrepreneurs get their businesses off to a good start. Contact him today to schedule a consultation to make sure your business is legally protected right from the start.