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Does the upcoming New Year inspire new business aspirations? For some, this could include the possibility of opening up a new enterprise. There are a number of steps that need to be taken before starting your own business, but three tips to get you started include:
- Prepare documents. Get all necessary documents in order. Put together a business plan to outline the basics, like where the business will be located and operation details. Begin drafting the bylaws. This document is extremely important as it will often serve to govern future business decisions.
- Choose an entity. In most cases, it is best to incorporate the business. The right entity depends on the details of the business. Examples include limited liability companies (LLCs), partnerships and sole proprietorships. Most entities serve to provide some level of protection against personal liability, acting as a buffer between your personal assets and the business’ assets.
- Get required IDs and licenses. A recent piece in Forbes notes that different types of businesses require different types of licensure. Make sure all the licenses your business needs are in order. Companies also require a federal employer identification number to get loans and to pay required tax obligations.
These tips are just the beginning. Additional matters may require attention prior to taking the first step. It is important to address matters like funding and market analysis prior to starting your business enterprise.
An attorney experienced in business law matters can aid in this process. Your legal counsel can review the necessary documents and help to ensure they are structured to meet your business needs. Your attorney can also assist in entity formation as well as any future business transactions.