Do you want to start a business, but you are unsure of what step to take next? This article details 4 essential questions to ask yourself when starting a business. These questions are based upon our experience working with hundreds of entrepreneurs and business owners to start, build, and protect their businesses.
Do I set up an LLC or Corporation?
As a new business owner, you should ensure that your business is a legal entity. The Limited Liability Company (LLC) and the Corporation are distinct entities that provide different benefits. How do you decide which is right for your business?
The LLC is the most likely option for new business owners. The LLC is flexible, easy to set up, and can be taxed in multiple ways.
For some business owners, Corporations may be the way to go. Corporations are distinct legal entities with rights and are taxed in addition to the owners & shareholders. Some see this double taxation as a drawback of the corporation model. Talk with a professional to know which is best for your business needs!
Should I register a Trademark?
If your trademark is essential to the life and success of your business, then YES! If your trademark is that essential, then you want maximum legal protection. However, if your trademark is a secondary concern to the overall success of your business, then most of your capital may be better spent growing your new business and the trademark can be dealt with later down the line. Many businesses are not aware, but you can always claim a Common Law Trademark for free instead of paying for a Registered Trademark.
Do I need a Contract?
Whether you realize it or not, you likely already have some! When a customer or other party comes to for X, you agree to that, and come up with some terms to that agreement – you have a contract. These can be oral or written. The biggest point on this essential question is to TAKE CONTROL OF YOUR CONTRACTS. Take those agreements, memorialize them in writing, and create some terms that protect your company in deals with employees, contractors, and customers.
What is the Best Sequence in which to do these Steps?
There are so many things to consider in starting a new business. Business plans, corporate formation, staffing, revenue, etc. My first recommendation – do SOMETHING. Take a step and move the ball forward. Adventure requires risk.
If you are looking for a partner to assist you in this process of starting a new business, we successfully work with many business owners and would love for you to be the next on that list. Contact our office today for more information!
Are you looking for additional practical steps in starting your new business? Check out our article & video titled: “6 Key Steps to Starting a Business” for tangible steps that you can take to move the ball forward in your new venture.
McCormick Law, PC d/b/a McCormick Law & Consulting is a boutique business and real estate law firm located in Norfolk, Virginia, that seamlessly serves clients throughout Virginia and North Carolina. Whether you are a new or existing client of the firm, McCormick Law, PC, cannot represent you on any new matter until the firm has made a determination that there is no conflict of interest and that it is willing to accept the new engagement. The testimonials on this website reflect the real-life experiences and opinions of our clients. However, the experiences are personal to those particular clients, and may not necessarily be representative of all clients. We do not claim, and you should not assume, that all clients will have the same experience. Your outcome may vary.
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