Startups create products and services that can revolutionize industries. As a result, startups should plan carefully from the outset in order to ensure effective compliance with all legal requirements and relevant rules and regulations. Doing so ensures that a startup is best positioned to hit the ground running.
It is encouraged that startup owners consult with a business attorney when launching their company. Experienced business attorneys can provide the startup with advice regarding entity selection, preparing documentation required for filing, obtaining business licenses and/or permits, and more.
Selecting an Appropriate Business Entity
A startup’s most important decision is selecting an appropriate business entity. Each choice of business entity has its own tax, liability, and ownership benefits. Some examples of business entities include:
- Corporation
- Limited liability company (LLC)
- Partnership
- Sole proprietorship
Careful evaluation and consideration are required whenever selecting a business entity. Experienced business attorneys understand the importance of selecting a business entity that successfully balances the startup’s best interests with the laws governing legal compliance, liability, and taxation.
Preparing and Filing Required Documentation
In order to formalize a startup’s formation as a legally operating business entity, the start-up may be required to file certain documentation with the Secretary of State. Oftentimes, startups will be required to file documentation which may include Articles of Organization, Articles of Incorporation, tax identification applications with both the Federal and State tax agencies, and perhaps even bylaws. Drafting these documents can be both confusing and time-consuming. Failure to correctly prepare and/or file the required documentation could result in the improper formation of the startup, increased exposure to liability, and other legal complications. An experienced business attorney can assist in accurately preparing what is required as well as ensuring that all necessary filings are properly and timely filed.
Obtain any necessary licenses or permits
A startup may require certain licenses or permits in order to operate. Without proper licenses or permits, a startup risks exposure to sanctions, fines, or being shut down. This can have legal and financial repercussions which may negatively impact the startup. An experienced attorney can help ensure that all the necessary paperwork is prepared and filed and that all required licenses and permits have been obtained in order for the startup to operate.
Contact Startup Company Counsel today to discuss your business formation needs
Business formation is the most important step for any startup. Proper business formation ensures that the startup is able to hit the ground running while focusing on its product or service. At Startup Company Counsel, our experienced business attorneys are committed to helping startup owners succeed. Call us today at 408-441-7555 in order to schedule a consultation with one of our experienced business attorneys.
