7 Steps to Legally Begin Running Your Business

As a legal educator, John has enjoyed teaching budding entrepreneurs and watching their businesses grow and flourish. Startup entrepreneurs especially have had to adapt to the ever-changing market and demographics of today, but the legal foundations of starting a business remain more or less the same.

While the beginning phases of starting a business can be full of positivity and energy, it’s important to account for the risks and liabilities, too. By taking care of the legal aspects in the beginning, you will ensure that the path to success is clear and unobstructed. With that said, make sure that you take the following steps to legally begin running your business:

 

  • Who Are You? Do you already have a name in mind for your business? It’s best practice to consult with a business attorney first to ensure that the name you have picked does not infringe on anyone’s copyrighted name or trademark. While a Google search is a quick way to see if that name is already in use, there are more nuanced legal aspects to infringing on a copyright or trademark that you may not know about or understand. For example, even if no one else has the same name as yours, it may be similar enough to another name that you will be required to tweak or change it.

 

  • What Are You? Should you file as a sole proprietorship? A partnership? A corporation? An LLC? You will need to register your business as one of these entities, but each has its own benefits and downfalls. Which entity is right for you, taking into account everything there is to know about your business? You need to know how a certain entity will impact how you run your business. A qualified business attorney can help you decide.

 

  • How Will You Do It? As a matter of best practice, you should always have a business plan and related governing documents before you start your business, especially if you plan on having employees other than yourself down the road.

 

  • Where Are You? Whether you are leasing an office space, buying property, or building on existing property, you will need to pull together the necessary documents to get a functioning office space up and running. You may need to negotiate lease terms, ensure that the lease is agreeable and that you understand what it entails, get insurance, take care of starting the utilities, and more!

 

  • Take It to the Bank! Open a separate bank account for your business’s transactions. Choose the bank you are going to affiliate your business with carefully! Some banks may offer special credit lines and perks for certain kinds of businesses.

 

  • Get Your FEIN. You will need a Federal Employer Identification Number (FEIN) in order to open a bank account for your business and start your payroll process. A business attorney [Link to WHAT WE DO page] can help you with this.

 

  • What Business Permits and Licenses Should You Get? Depending on your industry, you may need to obtain federal and state licenses/permits in order to operate your business. Consult with a reliable, experienced business attorney [Link to WHAT WE DO page] to ensure you have what is necessary and are in compliance.

Contact Us

Aside from the 7 steps we mentioned above, there are several other things you will need to take care of in order to lay a solid legal foundation for your business. This blog barely scratches the surface of what needs to be done. If you are an entrepreneur who needs legal guidance in starting your business, Attorney John Espinosa is here for you. Contact us here or call us at (978) 288-1468 today.

 

 

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John Espinosa, Esq.

John Espinosa helps entrepreneurs do business right by providing convenient access to quality legal advice and services, with more than 15 years experience in the legal field from multiple perspectives.

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