- I want to start a new business, but I have no idea where to begin. What should I do first?
- Ok, I am ready to be a business owner. What now?
- Should I start a business alone? Or should I find some business partners?
- Do I need legal advice prior to starting a business?
- Do I need tax and accounting advice prior to starting a business?
- I am ready to start a new business, or I am about to buy an existing business. How do I proceed in forming my business entity?
I want to start a new business, but I have no idea where to begin. What should I do first?
Starting a new business can be challenging, but also extremely rewarding. One of the first things to do is to assess whether you are ready to become a small business owner. Many entrepreneurs treasure the independence and creativity associated with running their own business. But some are also burnt out by the long hours and the stress of knowing that the next paycheck depends on the ongoing success of the business. Seeking advice from other small business owners and attending free counseling and training programs are excellent ways to get a better understanding of whether you are ready to plunge into business ownership. You can find more information on counseling and training sessions for small business owners here.
Ok, I am ready to be a business owner. What now?
Before setting up a new business or buying an existing business, it is generally a good idea to write out a business plan. Planning your business will help you identify and assess the potential risks to your business idea as well as prompt you to find creative ways to market your products or services. As you write your business plan, you will need to conduct substantial research on your competitors and the industry in which your business belongs. This information will help you find ways to differentiate your products or services to your customers. Some excellent resources for writing a business plan can be found here.
Should I start a business alone? Or should I find some business partners?
There is no right or wrong answer for this issue. Some entrepreneurs thrive working alone on their business, while others derive great benefits from working with other like-minded and complementary individuals. If you go at it alone, you will have much greater control over the direction your business takes. If you partner with others, you will likely have to compromise on certain business decisions. This can be good and bad. From a legal standpoint, working with business partners presents certain difficult decisions early on regarding the respective ownership percentages of the various partners, the right of each partner to control the business, and the consequences of a break-up in the partnership. While the initial hurdles may be higher, working with others who share your vision may help you achieve more fulfillment in starting your business than otherwise.
Do I need legal advice prior to starting a business?
Many people start businesses without ever consulting an attorney and do not run into any major problems. The internet provides an abundance of resources, and while many of those resources may not be entirely accurate, several others are. Your decision to obtain legal advice prior to starting your business or during the initial phases of operating your new business really depends on whether you are comfortable with your grasp on a number of legal issues likely to arise, including, but not limited to:
- How to form a suitable business entity and comply with state law;
- How to structure a relationship between business partners;
- How to protect your business’s intellectual property, including patent, trademark, and copyright;
- How to approach and draft client / customer contracts;
- How to approach and draft supplier contracts;
- How to ensure compliance with consumer protection laws;
- How to structure employee contracts and compensation;
- How to structure independent contractor relationships; and
- How to ensure compliance with state and federal law governing your business’s online presence.
You may retain the firm online to advise you on these issues, or you may contact us (by retaining the firm online, you will receive a discounted rate for this service).
Do I need tax and accounting advice prior to starting a business?
Our firm does not provide tax advice. It is generally a good idea to speak with a CPA who works with new and small businesses about accounting and tax issues. We can provide a referral for you.
To provide yourself with the highest level of liability protection, you should carefully consider forming a business entity from which your business will operate. For many businesses, it is possible to operate as a sole proprietorship, but doing so means foregoing many of the legal protections associated with business entities. For help choosing an appropriate business entity, see our business entity frequently asked questions page.
