How to Handle the Legal Red Tape When It Comes to Your Business Startup
So, you’ve made the decision to start your own business. This is an exciting chance to put your skills and creativity to work, and you’re already envisioning your future as an entrepreneur, picturing the doors that will open to you. There’s just one downside to all this: the paperwork. You knew there would be some red tape involved in getting a startup launched, but you didn’t quite anticipate so much of it.
Seeking expert legal assistance from a reliable firm like Bay Area Corporate Counsel is one way to make the process easier. It’s also important to know the main areas you will be covering. Here are five steps you need to take, to complete your startup effort.
You Will Need to Hire an Accountant
It’s a good idea to bring in an accountant to advise you through the whole startup process, since you may need advice when it comes to paying out a financial plan or procuring a good loan. Your accountant will help you create a budget for your business, too. Anticipate a long-term relationship in which your accountant guides you through all aspects of financial planning, as well as oversees your business taxes, including quarterly, payroll, and federal filing.
You Will Need to Write a Business Plan
Your business plan is essentially a blueprint for every aspect of your business. It will open with an executive summary in which you state your primary goals, and a business description which details the nature of your business’s industry. The rest of the plan will go over the main components of a successful business and lay out how you intend to proceed. Depending on the nature of your business, you may include a description of your management team, a list of products or services, marketing and fundraising strategies, and a financial plan projecting likely expenses and sales,
You Will Need to Make Sure You Have Funding
Your business plan will enable you better to determine whether you need to seek additional funding via loans, grants, or investors. You will also need to lay out your business plan to potential funders, so they can see that you are a reliable investment. Start by making sure your credit score is up to par. When it’s time to apply for funding, look at the options available to you. These include bank loans, online lenders, microloans, and small business grants. Another possibility is to research whether any local entrepreneurs might want to invest in your startup.
You Will Need to Form Your Company as a Legal Entity
While there are several different options for business formation, most small business owners opt to register as a limited liability company, or LLC. To do this you will want to seek a registered agent, act as your own agent, or consult an attorney. Forming as an LLC is a good idea because it will save you money during startup and offer various tax deductions. With an LLC you will be better able to protect your personal property, which should ideally be kept separate from business property and budget.
You Will Need to Register With the IRS and Government Agencies
After you have formed your business legally, you will need to apply for an EIN, or tax ID number for LLC, This is another way you will keep your business distinct from your personal finances and make tax filing easier. It is also necessary if you want to open a business bank account or have employees on your payroll. You can get an EIN through a financial institution or directly from the IRS. Once you have your EIN, you will also need to register on a state level and acquire any permits you need.
Luckily, once you’ve gotten the hang of it, the bureaucratic angle on entrepreneurship won’t seem too stressful. You may even find you enjoy it. But it’s important to wade in knowing what your legal obligations are, when it comes to creating a business as an entity and establishing sustainable practices. Being informed from the beginning, and working with seasoned professionals, will make the process run more smoothly.
If you’re in the beginning stages of launching a business, look to the service of Bay Area Corporate Counsel to help meet all your legal needs.
Author: Nicola Reid, http://www.business4today.com/
Photo Credit: Pixabay
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