For Your Information
Starting a business
So, you are ready to start your business venture. Great! Get off on the right track by following a few simple "DO's and DON'Ts."
DO limit your liability to your investment in your company by incorporating your business or organizing it as a limited liability company.
DO disclose everything to your lawyer about your proposed business venture and past business experiences, both positive and negative.
DO discuss with your lawyer the advantages and disadvantages of the various forms of business entities.
DO discuss with your lawyer the "corporate formalities" to which you must adhere in order to preserve the limited liability afforded to you by virtue of having incorporated your business.
DO discuss with your lawyer the need for a detailed written buy-sell agreement with your business partners.
DO discuss with your lawyer the need for a written employee handbook and written employment agreements containing confidentiality and non competition obligations if necessary.
DO talk to a tax professional and budget for taxes.
DO invest in technology.
DO prepare a detailed written business plan.
DO join your local chamber of commerce, local civic organizations, trade groups, and entrepreneur's organizations.
DON'T make expensive office space and furnishings a high priority unless you are in an "image" business.
DON'T print your stationary, business cards, and promotional materials until you have had a trademark.
DON'T ask or permit your employees to breach confidentiality or non competition agreements with their previous employers.
DON'T spend money required to be set aside for employee and other withholding taxes.
DON'T sign company contracts in your individual capacity. Rather, sign them on behalf of the company as an officer of the company.
DON'T put off buying insurance.
DON'T give up 50 percent of your company to investors in your first fundraising effort.