Starting a business can be both exciting and overwhelming. With all the legalities, decisions, and details to juggle, it’s easy to get lost in the process. To help you navigate this exciting but challenging journey, here are the top five initial steps you need to know in order to begin protecting yourself and your new business.
1. Choose a Name for Your Business
One of the first and most crucial decisions in starting your business is choosing the right name. Choosing a unique name is wise as it ensure you won’t have company name disputes in the future, especially in the market or industry you plan to enter.
2. Find a CPA
Choosing the right Certified Public Accountant (CPA) for your business can help you set up your finances for the business correctly from the start. A good CPA can advise you on what business structure is best to form for your business, what state to register your business, and how to begin organizing your financial systems. A skilled CPA helps you avoid costly mistakes and gives you peace of mind regarding your business finances, allowing you more time and energy to focus on other aspects in growing a successful business.
3. Select the Corporate Business Structure
With the help of your CPA, choosing the right business structure is both financially and legally prudent. The U.S. Small Business Administration (SBA), identifies four main types of businesses: Sole Proprietor, Partnership, Limited Liability Company (LLC), and Corporation.
Selecting the appropriate business structure for your business is vital, as it significantly influences your personal liability and taxes. For example, a sole proprietorship is straightforward and easy to set up but exposes your personal liability. An LLC offers protection from personal liability while requiring more administrative documentation with the state. A Partnership which may be simpler to from than other corporate structures still expose the members to shared personal liability. In contrast, Corporations provide robust liability protection and are advantageous for attracting investors, though they involve more complex administrative and regulatory measures.
Your choice for your business structure will set the foundation for your business’s future, making it essential to fully understand your options and their implications.
4. Choose a State to Register your Business:
Once you have decided what business structure you will use, your CPA should provide you some options on which state(s) to incorporate (registering your business). It is important that you obtain tax advice from a qualified CPA in regards to what state you incorporate your business in because the state you open your business in will be the state you will pay business taxes to, and often the state law you will adhere to in your agreements.
5. Find a Lawyer:
Finally, choosing the lawyer for your business is the most important step in starting your business. Legal matters such as business incorporation, articles of incorporation, by laws, service agreements, intellectual property protection, and compliance are too technical to handle alone. Staying on top of legal obligations is critical. By working with a lawyer early on, you can avoid penalties, ensure smooth operations, and protect your business’s reputation.
In addition, your business ideas and innovations are invaluable. Protecting them—whether a product, service, or brand name—through trademarks, patents, or copyrights is essential.
The U.S. Patent and Trademark Office (USPTO) estimates that about 70% of a company’s value comes from intangible assets like intellectual property. Protecting your IP ensures your business retains its competitive edge and solidifies your position in the market.
If you develop a unique product or logo, others may exploit it without your permission, diluting your brand’s identity. By hiring a lawyer to protect your intellectual property, you not only shield your property from infringement but also enhance your business’s credibility and overall value.
Ready to Get Started?
Starting a business is a big step, but with the right guidance, you can set yourself up for success. At Dieuvil Law PLLC, we’re here to help you navigate every legal aspect of launching your business.
Contact us today for expert assistance in getting your business set up the right way!