Start With the Paperwork
The first step in starting your business—besides the business concept itself—is to initiate the proper filings with the relevant Secretary of State. These are the formational documents that will bring your business into the world as a distinct legal entity of its own. Generally speaking, these documents are simple enough to draft and file, but they are only the first step in your path to becoming a business owner. During this process, the choice of a business entity is an important one, and Dressel/Malikschmitt LLP can advise on the different strategies of each depending on how you want to structure your business, who you want to participate with in the business, and the legal purpose of the business.
Perhaps more importantly, your business will require articles and other documents that govern its workings. These documents set forth the different parties that share in ownership and management, as well as the procedures for the operation of the business. These documents are truly critical as they supply the “rules of the road” for the business’s operation, including everyday operational procedures, rules for profit distribution, allocation of costs and responsibilities, and also for any problems that may arise, including potential litigation, disagreements, departing partners and the potential for winding up.
Safeguard your Business to Avoid Disputes and Provide Protection
All too often we see businesses get ahead of themselves and simply fail to put in place these appropriate safeguards. Although understandable, this is problematic from two angles:
First, it invites a complete mess when issues arise—which they undoubtedly will—as there will be absolutely no guidance for handling even the most routine of disputes. Even worse, if procedures are established, but not appropriately memorialized, a business can find itself in an expensive and contentious “he-said-she-said” dispute to unscramble disagreement.
Second, failing to establish these agreements will rob a business, as well as its owners and managers, of beneficial protections. For example, operating agreements can provide for terminating non-participating parties, raising additional working capital, providing managers and directors with indemnity and legal costs, and providing for confidentiality and choice of law provisions, among other helpful protections.
Your Roadmap to Success
A business plan is yet another important formational document. They say an ounce of preparation is worth a pound of cure, and we couldn’t agree more. Thinking through your market, business strategy, and plan for execution goes a long way towards committing your business to success. It also provides a road map to keep your business on-course through the hectic phase of getting it off the ground. From our vantage point of having seen it all go wrong, we can help find the weaknesses in your strategy and help fill in those “unknown-unknowns.”
And, of course, depending on the nature of the business, we can advise on the myriad of additional relationships that need to be forged as soon as possible, including, but not limited to, banking, finance, insurance, regulatory compliance, labor law compliance, etc. to ensure that all the ongoing needs are met.
Use Our Experience to Launch Your Business
In all of this, we excel in advising businesses at all stages in meeting their goals, and we bring the benefit of our experience to bear on counseling your business as adeptly as possible.
The attorneys at Dressel/Malikschmitt LLP are experienced attorneys in the start-up field. If you would like to contact one of our attorneys, please reach out via email at email@example.com, call at 848.202.9323, or visit our website www.dresselmalikschmitt.com.
Disclaimer: Please note that any legal question requires consideration of individual facts, and this article is not intended as legal advice to any individual or business and should not be relied upon as such.