Establishing a new business can be challenging yet very exciting. You may have found the perfect location in Florida and identified a gap in the market that you know you can fill.
With so much to do, it can be easy to overlook the legal components of your business, which are extremely important. Outlined below are a few things to consider as you embark on this new and exciting chapter in your professional life.
The legal structure of your business
There are numerous options open to you in terms of the structure your company can take. For instance, if your business has been set up on a small scale as a side project, then you may want to run it as a sole proprietorship. This means that the company will only have one owner and all tax obligations, costs and debts are the personal responsibility of that single owner.
If your new business is going to be your main source of income, then it’s likely that you’ll want to set up a separate legal entity so that your personal liability and finances are kept separate from the company. A Limited Liability Company (LLC) structure is one way to accomplish this aim. You can choose this option as a sole owner or as one of many. The key distinction is that you will be shielded personally from most liability related to business operations.
As your company evolves, you may want to enlist the help of new team members. For instance, you may take on staff so that you can delegate tasks. All of your employees are going to require employment contracts that offer protection to all parties.
There may even come a time where you decide that you need to bring in a business partner for fresh ideas or capital investment. As with all professional relationships, a partnership should be grounded in the terms of a contract. Having a watertight partnership agreement lets both parties know exactly where they stand in terms of roles, responsibilities and rights.
Setting up a new company is a lot of work and it’s important to remember that you don’t have to go it alone. We help startups with the legal side of their operation, feel free to contact us for a consultation.