Getting off on the right foot is crucial with everything in life. Starting a business is no exception. As you’re beginning the process, or if you’ve already begun, please keep these four things in mind.
1) Choose the Right Entity
If you’re a sole proprietor, in a partnership, an LLC, or a corporation; it’s important to understand the nature of each business type and choose the right one for your business. Each one is distinctly different, and they each have different formation and reporting requirements, protections, and tax obligations. It’s important to get it right the first time. An attorney can assist you in making the correct choice. After the start-up phase, if you discover you’ve made the wrong choice; you’ll need to convert from one business type to another. This can be a time-consuming and costly process.
2) Protect your Intellectual Property
Depending on what your business does, intellectual property can be a significant part of its value. In a nutshell, business names, logos and slogans can be protected by registering a trademark; inventions by registering a patent, and works of art through copyrighting. Without these protections, it could be difficult to enforce your intellectual property rights. An attorney will not only assist you with protecting your intellectual property rights, she or he will also save you countless hours in the process.
3) Get adequate insurance
Your business will need insurance. Insurance needs differ depending on what your business does and where it’s located. The most common types of business insurance are professional liability, property, worker’s compensation, home-based business, product liability, vehicle, and business interruption. Their are others as well. Businesses quite often find themselves in trouble when their insurance policy doesn’t cover specific losses, or they neglected to purchase the right insurance because they didn’t think they needed it. An insurance broker, that works with small businesses will help you get the right policies in place.
4) Understand your tax obligations
Knowing and understanding when and how much to pay federal and state income, estimated, self-employment, employment, and excise taxes, is crucial to the success of a business. Keep in mind, fines, penalties and interest can quickly add up for those who pay late, or not at all. Having a CPA on your team can save your company thousands.
In conclusion, I strongly encourage you to speak with an accountant, an insurance agent, and an attorney. They can be a great asset and resource for your business. It’ll cost you a little money and a little time now, but the savings in both time and money down the road will be worth it.
Contact me if you need help with your starting your business or protecting your intellectual property.
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This article is for educational purposes only, and does not constitute legal advice about your case or situation. There may be exceptions to the information outlined above. Please consult an attorney if you have specific questions about your business.Follow me on social media: