So…You’re About to Start a Business!
Starting a business is exciting! You’re about to turn an idea into reality while having the freedom of working for yourself. But, where should you start? Here are some things to think about when starting your new business:
What type of structure do you want to have?
Many small businesses start organically (or even unintentionally). The cards you enjoy making as a hobby have caught others’ eyes, or the cupcakes you brought to your sister’s baby shower have inspired orders for other parties. However, not formally putting a structure to your business (whether LLC, S-Corp, or something else) will have tax and liability implications you should consider.
Do you need a business plan?
Maybe you think that a business plan is for only for someone seeking investors, or the market is too unpredictable to bother writing one. However, a business plan is a tool to help you define who you are, what your product is, and to whom you should be marketing.
(If you’re working with someone else) should we have a formal partnership agreement?
A formal agreement as to what tasks are each partner’s responsibilities or who has invested what funds into the business. Sitting down and figuring out how you’re going to divide the labor (and profits!) when you’re just starting out can help solve problem before they start.
What don’t you know?
Maybe it’s when or whether to hire employees. Maybe your questions are how to manage those employees you decided to hire. Ultimately, most people don’t know what they don’t know until they’re faced with a situation they’ve never dealt with before. Have a reliable team behind you that you can call upon for answers to your questions as they arise.
At DangerLaw, LLC, we love working with new businesses! We believe it’s our job to help you protect your business while maximizing its value. We’re glad to speak with you about how we can help,
Originally published at https://www.dangerlaw.com/on October 18, 2019.