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5 things to remember when starting a business

On Behalf of | May 20, 2021 | Business Law |

Anyone can have a business idea, yet few people do something with their idea. One of the main reasons is that starting a business is challenging.


Rushing into starting a business is a mistake. You need create a solid foundation to grow upon. Skipping over steps at the beginning could come back to haunt you later.


There are several key steps to business formation


If you have never created a company before, starting one can be daunting. Here are a few key things to remember:


1.     Choose the correct business entity: You might not think it matters how you set up your business if it is your first time. Yet, if you run the company as a sole partnership, you put your personal assets at risk in the event of problems. More formal structures can also have significant tax advantages.


2.     Choose the right partners: Being friends with someone does not mean you should go into business with them. The ideal partner will bring qualities or skills that complement yours. You might even be better off alone.


3.     Secure adequate insurance: There is no one insurance that covers everything. At the very least you will need liability insurance.


4.     Get the necessary licenses and permits: Doing business can need permission from various agencies. If you do not have them, they could shut you down or fine you before you get started.


5.     Ensure you understand the regulations: Businesses are subject to many rules, regulations and standards. Some are federal, some local and some imposed by landlords. They can cover everything from your employees’ entitlement to time off, to what you can sell.


Remember that a business is a legal entity. Seek help to document and register things in the correct legal manner.