Starting and running your own business can be incredibly rewarding, but it is also inherently risky. Maybe you’re doing something entirely new and putting your money, time and dreams on the line to make it a success. But sometimes things don’t go as planned.
When it comes to starting a business, you might be a pro, but what about when it comes to working through all the legal issues you must consider as an entrepreneur when launching your startup? Most entrepreneurs get caught up in the midst of starting their business and quickly forget the legal aspects that need to be considered.
A sole proprietorship is an unincorporated business with one person as the owner. Sole proprietors report business income and losses on their personal tax return and are personally responsible for the business’s debts and legal obligations.
There are more than 23 million sole proprietorships in the U.S., making this by far the most common type of business entity.
For those of you contemplating or already in the process of forming a startup, you know your reasons are multiple. But have you taken the time to honestly assess why you want to start your own business? My article is meant as a tool to help you identify and assess your unique motivators and purposes.
As a business attorney, I’ve helped scores of entrepreneurs through the process of incorporating their businesses. Our first step is to consider the benefits of forming a corporation and discuss whether this is the right course of action for them.
In this month’s newsletter I briefly describe eight of the biggest advantages to incorporating a small business.
As an entrepreneur, you know that incorporating your business can be a wise move to minimize your liability, protect your personal assets, even provide tax savings in some cases. However, navigating the various logistical and legal requirements isn’t always easy, particularly when you don’t want to spend countless hours buried deep in legal fine print.
With agreements being the cornerstone of most business arrangements, I am surprised by the number of business owners who continue to ignore the importance of putting it in writing – that’s right, a written contract. No matter how well-intentioned both parties are, operating on a handshake is far too risky for your business.
For many individuals, self-employment as an independent contractor can be a rewarding and satisfying career option. As is true with any employment relationship you enter, it’s important to understand the roles and responsibilities of everyone involved.
In the months leading up to opening a business, there are hundreds of questions that come up. It’s part of the process to have questions that you want answered; it means your mind is dedicated to the business. With that said, we’ve picked 20 of the most common questions that people have asked us about the businesses they’d like to open, and we’ve given our answers as well.
As an attorney involved with startups, I have seen plenty of legal mistakes made by entrepreneurs and startup companies. The following are some of the more common and problematic legal mistakes we have seen.
NOT MAKING THE DEAL CLEAR WITH CO-FOUNDERS
You absolutely have to agree with your co-founders early on what the deal is among you.