So you’re going to start a business. You have your idea, the business plan is formulated, you know your market… you’re ready to get serious. At this point, many soon-to-be business owners realize they haven’t developed the proper legal framework for their new business. Ultimately, any startup will need to consult with an experienced business startup attorney to ensure the necessary steps are followed when legally setting up the business. To get you started down your path, the following is a brief overview of a few crucial items you’ll need to consider with the help of an attorney as you launch your new business venture.
Forming a Business Entity
One of the first decisions you need to make as a business owner is what kind of business entity you plan to establish. There are different types of arrangements for a business, including:
The links above point to the IRS’ own descriptions of each entity type, for further reading. There are more options than these, though they are the most common. Whatever structure you choose will greatly impact everything from your day-to-day operations to how you will file your taxes or what your personal liability will be. It’s very important that you have a qualified startup lawyer walk you through the benefits of the different types of business entities to help you make the best decision. The direction you choose will have profound effects on your business over the long run.
Creation of Company Records, Documents, and Contracts
Once you’ve settled on what type of business you will be, you need to legally establish the foundation of your business through binding company records and documents. These documents will help you deal with the government (legally establishing a business, taxes, etc.), third parties and the public (contracts with customers, suppliers, employees, etc.), each other (if you have more than one owner), or with investors (should you have any).
Contracts protect everything from your intellectual property rights to ensuring that your employees keep your company’s business secrets confidential. Other types of contracts that startup lawyers can help with include non-disclosure contracts, business plans, service contracts, employment contracts, privacy policies and terms and condition agreements, letters of intent, stock purchase agreements, business leases, or loan agreements. Obtaining legal guidance from a startup lawyer will help your company develop strong contracts that benefit your company financially, as well as ensure that you have legal protection regarding your goods or services.
Contact An Experienced Business Startup Attorney
Hopefully, the above has helped you begin to formulate ideas about your future business. However, questions will arise regarding these crucial first steps in your business setup. As an attorney practicing for over 15 years, Itai Klein has successfully helped many clients with their startup business needs. Contact Itai and his team of startup lawyers at KLEIN.LAW at (310) 295-2261, or fill out our online form today for a free consultation.
