You’ve had a dream of leaving corporate America and going off on your own. You have an idea for a product that will change people’s lives! It’s all very exciting, a bit daunting, and you are wondering if the risk is worth the reward. When you’ve made the big decision to leap into the world of entrepreneurship, establishing your business correctly at the start will save you time and anguish later down the line if something were to go sideways.
Becoming a business owner for the first time is like taking a hike in unfamiliar territory. It’s not enough to just have the drive and financial backing to move forward, you need help when navigating the legal and regulatory challenges of getting established. There are missteps that can cost you. Getting the advice of an experienced business attorney can be the difference your business needs.
Forming your business can be very complicated. Should you set up as a sole proprietorship? S or C corp? Just an LLC? Knowing the pros and cons of each structure is critical for the legal and tax implications of your new business. Don’t trust those “online” legal paperwork firms to properly know and understand all aspects of establishing your business in the state of operation. Trust in an attorney that is local to your market and understands the laws of your state of incorporation.
Partnerships in your business can be a wonderful thing, but being in business with another person can quickly poison a relationship unless the parameters of the partnership are clearly laid out. An attorney can help you structure your agreements so that roles and responsibilities are clear. An attorney also be very helpful when the partnership breaks up and parties decide to leave the business. Documentation up front helps defuse situations that go sour.
Money is the lifeblood of your small business. Cash flow can make or break your business. Are you bootstrapping your business with cash you’ve saved up? Are you going to go a traditional route and visit your local bank for funding? Are you going to chat with a capital lender? With the exception of self funding, both you and your business will be under the microscope when applying for a loan. Having a quality attorney establish your business will produce the documentation you need to get funding, and be around to assist when the finance company throws you a curve and asks for something off the wall!
As your business grows, you may expand and start adding employees to your team. There are new laws, rules and regulations pertaining to bringing on staff. A small business attorney can help you understand your obligations as an employer, and help get your HR policies in place as your team grows.
Finally, a small business attorney can help you with the monthly legal activities involved with running a small business. Contracts and agreements sent by your firm to potential clients can be reviewed by your attorney, as well as the agreements from outside your firm. Rental agreements, lease agreements, contracting agreements and others form the backbone of many small business monthly activities. Having someone available can help you sleep at night, knowing that your interests are being protected.
The risks of going out on your own are real, but can be mitigated by working closely with a small business attorney. The staff at D. Mathew Blackburn has extensive experience establishing, consulting and legitimizing small businesses across Colorado. We are, in fact, a small business just like yours! Let us share what we’ve learned and help you get your business off to a great start! Give us a call: We do attorney things!