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6 Key Steps to Starting a Business

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Are you in the process of starting a business?  If so, our team is here to assist you every step of the way.  Not sure where to start?  No problem.  We make the process simple and efficient by utilizing electronic signatures and our secure client portal.  During the process, you will have the opportunity to consult with one of our experienced business attorneys who will answer your questions and create a plan that is custom tailored for you.  To help you get started, here are 6 key steps that we recommend when starting your business:

1. Setup a Legal Entity

This step is crucial and should be one of the first steps that you take when starting your business.  During this step, you will determine whether a Limited Liability Company (LLC) or Corporation is the best fit for your business.  The owners of an LLC or Corporation are generally not personally liable for business debts.  Not sure what entity to choose?  Do not worry, we will help you determine the best legal entity for your unique business.  If you want more helpful information on Corporations, S-Corps, LLCs, or Partnerships then take a look at our previous article titled: “What Business Entity Should I Choose?

2. Draft and Sign Your Entity Documents

Setting up your LLC or Corporation is more than just filing the paperwork with the State.  You must also draft and sign your entity documents.  These documents should include: (1) Initial Meeting Minutes, (2) Subscription Agreement, and (3) Operating Agreement or Bylaws.  Your entity documents are crucial whether there is one owner or multiple owners of the business.  If there are multiple owners of the business, then we recommend including buy/sell provisions and transfer restrictions within your entity documents.   

3. Obtain your Tax EIN

Your tax EIN is a unique Employer Identification Number also known as a Federal Tax Identification Number that will be used for tax purposes with the IRS.  An EIN is generally required for every business and will be necessary to setup your business checking account.

4. Setup your Business Checking Account

It is important to setup your business checking account at the very beginning of your new business venture.  This way you can clearly show separation from your personal assets and your business assets.  Never commingle your personal assets with your business assets.  Why not?  Because this may create personal liability risk by allowing business creditors to “pierce the corporate veil” and hold you personally liable.  If you want to know more about how to protect from piercing the corporate veil, then check out our previous article titled: “4 Simple Steps to Protect Your Business from Piercing of the Corporate Veil

5. Prepare the Necessary Business Contracts

Do not skip this step and start operating your business without the necessary contracts in place!  A well written contract can help you avoid litigation and protect against significant financial loss.  There are 4 main categories where you should evaluate the use of contracts: (1) contracts between you and other owners of your business, (2) contracts between your business and its employees or independent contractors, (3) contracts between your business and vendors/suppliers, and (4) contacts between your business and its customers/clients.  Our attorneys will help identify which categories apply to your business and then determine the best contracts to put into place. Also, take a look at our previous article titled: “Five Tips Before Signing a Contract” for important issues to address prior to signing any new contracts.

6. Schedule a Free Business Strategy Call

If you are starting a business, then we offer a free business strategy call where you can chat with one of our experienced business attorneys.  During this call, we will determine the best steps forward for you and your business.  To schedule your call, just click on the link below and follow the two-step process to book and schedule your call.  We look forward to speaking with you and developing a plan to start, build and protect your business!

Do you have other questions regarding the start of your new business? Check out our article & video titled: “4 Essential Questions before Starting a Business” for practical questions every new business owner should ask themselves. Also, take a look at our article & video titled “5 Ways We Help Entrepreneurs Build Successful Businesses.

Client Reviews

We are proud to have more than 100 five-star reviews across Google, Avvo, and other platforms.
  • Being a first time business owner, you want to make sure you're making all the right decisions. Choosing McCormick Law & Consulting, along with Emma and Taylor, made the process so easy! Emma understood right away what my primary concerns were, and was able to execute everything in a very timely manner! She was extremely easy to talk to and she took the time to explain everything to me, settling my nerves with taking this next big step. Taylor made the process of making it all official completely stress free.
    Crystal G.
  • I am a criminal defense attorney licensed in both North Carolina and Virginia. I have taught attorneys across the State of North Carolina on varying trial matters ranging from jury selection to DWI defense. I definitely could have created my new business, Davis Wealth Management LLC, but boy that would have been a mistake. Because business formation is not an area in which I practice, I had no idea where my blind spots were, and let me tell you there were plenty. The knowledge I received from the firm is invaluable.

    John McCormick and his firm are very reasonably priced and quickly and efficiently assisted me in creating my new business. It was completely turn key; they did everything for me.

    I can't recommend their services enough. Also, huge shoutout to Taylor who kept me informed every step of the way!

    James D.
  • I highly recommendMcCormick Law & Consulting! My Father and I live in two separate states and the properties he needed legal services for are in Virginia. I reach out to Taylor on two separate occasions and she was very responsive and professional. The first time we used their services it went so smoothly that by the time I needed their services again I knew I could just send over the necessary documents, pay my invoice and rest assured it would all get taken care of. They eliminated the stress that comes with handling some else's affairs and I so appreciate that.
    Heather C.
  • From the the very 1st conversation with their office it was clear they would be responsive to all my questions and any support with my business. They are relatable and make their customers feel comfortable with any questions and or concerns that might arise while using their services. I am happy to have found them to support me with my small business needs!
    Lisa N.
  • I can't say enough great things about the professional team at McCormick Law & Consulting! We really had no idea of who to trust and who we could count on for quick and professional service in the Hampton Roads area for getting our new business up and running smoothly and the Team at McCormick Law & Consulting really knocked it out of the park with us!
    Jerry G.
  • I had the good fortune of working with McCormick Law on a business sales contract. I sent them the initial draft provided by the buyer along with a few notes about my specific concerns. They carefully went through the document and provided meaningful additions and corrections that better protected my interests. Thanks to Bobby and John for their personalized attention.
    Arthur B.
  • Mr. McCormick and his entire team were amazing! They assisted me in a legal matter concerning a business dispute. Mr. McCormick is highly experienced, ethical, dedicated, and was prepared to fight my legal matter in court if necessary. I thank the entire team for believing in me and would highly recommend them to anyone!!
    Jeanette L.
  • We used McCormick Law to start up another LLC and it was a great experience. I have used other lawyers and attorneys in the past and I experienced delayed responses and it was what I have come to expect.From the first interactions with Robert and his team, I was surprised to how responsive they were. I even mentioned to my new business partner that this was not normal and I was very happy.Needless to say I will be using McCormick Law for all of my business needs in the future.
    Colton S.
  • I utilized this firm for help on a real estate matter. I felt comfortable with the advice I received and am happy to continue doing business with them and referring others to the practice. Everyone I engaged with was welcoming and made the process very easy.
    Christian S.
  • John and his team were great to work with. They provided advice for starting my business and set everything up in an efficient and timely manner. I will definitely recommend them to others!

    Elizabeth H.
  • I contacted McCormick Law firm to register my moving service in NC. They did an outstanding job. Completed the process way sooner than I expected. Thank you, Taylor.

    Steve T.

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    Disclaimer

    McCormick Law, PC d/b/a McCormick Law & Consulting is a boutique business and real estate law firm located in Norfolk, Virginia & Raleigh, North Carolina, 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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