Turning a great idea into an actual business can be an exciting undertaking. However, properly executing your plan can sometimes be a challenge. If you have decided to launch a new business, it is very important to pay attention to some key legal issues that often are overlooked.
When forming a new business, selecting the correct business structure (legal category or status) is crucial for its success as it will determine how the business will operate. Common business structures include Sole Proprietorship, Partnership, Limited Liability Company (LLC), C Corp or S Corp. The structure you choose will affect your personal liability, how much you pay in taxes, which paperwork gets filed and the ability to raise money.
Choosing a name for your new business can be one of the most exciting, personal decisions in the process and it should be done with care for a number of reasons. Selecting a name that best represents who you are as a company and what you offer can help the business become more successful. Legally, it is very important to register your name in order to protect it. This should be done at the state and federal level, as well as online with a website domain name.
In order to legally operate your business, you must obtain the proper licenses, permits and tax registration. Different licenses will be required depending on the nature of your business, such as general operating licenses, liquor licenses, health permits, zoning or land-use permits, etc. It is always recommended that you speak to an attorney to verify what is legally required for your specific situation.
If you plan on hiring even one employee, you need to work out some important details. Determining if they will be independently contracted or on your payroll, completing the appropriate employment forms, developing an employee handbook which specifies employment policies, preparing non-disclosure agreements to ensure your company secrets remain protected and being aware of important employment laws are all factors to consider when others will be working for you.
Neglecting any of the above issues can result in fines, tax complications, lawsuits or even closure of the business. While the legal details of starting a new business can seem very overwhelming, you can be confident in the attorneys at Churchill, Quinn, Richtman & Hamilton, Ltd. We have decades of experience helping thousands of clients successfully complete the process, thoroughly explaining what needs to be taken care of and answering any questions along the way. Contact us at 847-223-1500 and talk with our experienced attorneys to discover how we can serve as a valuable resource throughout the life of your business.